STMicroelectronics NV (NYSE:STM) stock is surging today, last seen up 9.3% to trade at $32.64, after the company announced a multi-year contract with Amazon Web Services (AWS) to supply advanced chips. As part of the partnership, AWS could buy up to 24.8 million of STM's shares over the next seven years.
Now trading at its highest level since June, STM is on track for its largest daily percentage gain since a 10.7% pop during that month. Over the last 12 months, the Top Stock Pick of 2025 has tacked on 43.2%, and is already up 24% in 2026.
Options traders are blasting the semiconductor name after the news. So far, 13,000 calls and 2,023 puts have crossed the tape, which is already 2.6 times the options volume STM typically sees in an entire trading session. The February 34 call is the most popular, followed by the May 35 call, with new positions opening at both.
STM's Schaeffer's Volatility Index (SVI) of 42% ranks in the low 22nd percentile of its annual range, meaning options traders are pricing in low volatility expectations. The stock has tended to exceed those expectations over the past year, per its Schaeffer's Volatility Scorecard (SVS) of 96 out of 100.
