Jim Cramer Says He "Would Be a Buyer of STMicro"

STMicroelectronics N.V. (NYSE:STM) is one of the stocks Jim Cramer recently looked at. A caller inquired about the stock during the lightning round, and Cramer replied:

It’s cheap. It’s good. Now, people say it’s cheap. What do you mean?…  like 40 times earnings versus the others with growth? It’s actually okay. I would be a buyer of STMicro.

STMicroelectronics N.V. (NYSE:STM) is a semiconductor manufacturer that designs and produces electronic components, including sensors, power management solutions, and microcontrollers. Hardman Johnston Global Equity Strategy stated the following regarding STMicroelectronics N.V. (NYSE:STM) in its third quarter 2025 investor letter:

Additionally, we initiated a position in STMicroelectronics N.V. (NYSE:STM). STMicro is a leading supplier of analog semiconductors, serving automotive, industrial, and personal electronics markets. After a post-pandemic period of oversupply and excess inventory weighed on the industry through 2024, but evidence suggests the analog semiconductor cycle reached a trough in early 2025. Indicators such as growing customer backlogs, improved order signals, and better inventory visibility point to a recovery in the near future. STMicro is well positioned to benefit from this restocking cycle, with potential for significant gross and operating margin leverage as underutilization costs decline and structural manufacturing optimizations take effect. Beyond cyclical tailwinds, the company has medium-term growth opportunities, including incremental iPhone content on new models and exposure to emerging markets like LEO satellites and AI data centers, supporting structural expansion.

While we acknowledge the potential of STM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.