STMicroelectronics stock falls after AI slowdown hit, UBS sees upside with EUR 80 target
Published on 09/15/2026 at 19:39 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
STMicroelectronics stock (ISIN NL0000226223) closed at EUR 42.90 on Euronext Paris on September 14, 2026, down 3.9 percent for the day and 39.5 percent below its 52-week high of EUR 70.85, leaving a wide gap to its recent peak.
AI slowdown fears weigh on the share
According to Ad-hoc-news on September 15, 2026, STMicroelectronics N.V. ended the September 14, 2026 session between EUR 41.67 and EUR 42.90, with the 52-week low standing at EUR 18.20 and the 52-week high at EUR 70.85, underscoring how far the stock has retreated from its high.
The same report cited sector data showing that European technology shares weakened after AI slowdown warnings, with STMicroelectronics underperforming the broader STOXX 600 index, which was down 0.3 percent in early trade, highlighting how AI-related sentiment has become a key driver for the stock.
UBS confirms buy rating and EUR 80 target
As MarketScreener reported on September 15, 2026, UBS has confirmed its buy recommendation on STMicroelectronics NV and set a price target of EUR 80, arguing that data center applications and recovering margins are the main growth drivers over the next few years.
According to MarketScreener, UBS expects STMicroelectronics to generate around USD 500 million in AI power semiconductor revenue in 2027 and about USD 1.3 billion in 2028, corresponding to estimated market shares of 6 percent and 10 percent respectively in that niche.
The same UBS analysis, as relayed by MarketScreener, projects total data center related revenues of around USD 2.5 billion in 2027, equal to about 14 percent of group revenue, rising to USD 3.8 billion in 2028, or roughly 19 percent of sales, with silicon photonics revenues estimated at USD 2 billion in 2027 and USD 2.5 billion in 2028.
UBS also highlights margin recovery as a central pillar of its positive view, and according to the figures published by MarketScreener, the EBIT margin, which had fallen from 26.7 percent in 2023 to 4.6 percent in 2025, is expected to recover to 9.0 percent in 2026, 19.4 percent in 2027 and 25.4 percent in 2028, approaching 27.5 percent by 2030.
Fundamental outlook and quantified comparisons
On the fundamental side, UBS forecasts, as cited by MarketScreener, that STMicroelectronics will see revenues rise from USD 11.8 billion with EBIT of USD 543 million in 2025 to USD 14.6 billion in 2026 and USD 1.3 billion of EBIT, implying an increase of roughly 23.7 percent in sales and a more than doubling of operating profit year on year.
Looking further ahead, the UBS projections quoted by MarketScreener suggest revenues of almost USD 18 billion in 2027 with EBIT of USD 3.5 billion and net income of USD 2.9 billion, and more than USD 20.1 billion of revenue in 2028 alongside EBIT of USD 5.1 billion and net income of USD 4.3 billion, illustrating a step change in profitability compared with the 2025 base.
UBS estimates, according to MarketScreener, that earnings per share will grow at a compound annual growth rate of about 56 percent between 2026 and 2029, with EPS expected to rise from USD 1.40 in 2026 to USD 3.16 in 2027, USD 4.63 in 2028 and USD 5.31 in 2029, offering investors a quantified view of the anticipated earnings trajectory.
The same analysis notes that, despite these growth and margin recovery expectations, STMicroelectronics currently trades at around 16 times the forecast 2027 earnings and 11 times 2028 earnings, versus a historical average of about 18 times forward earnings, which UBS interprets as a relatively undemanding valuation compared with the projected earnings growth.
Product launches support the longer-term story
According to Ad-hoc-news, STMicroelectronics introduced the ST SafeSense VD56GA automotive image sensor on September 14, 2026, with the company stating that samples of the device are now available, adding a fresh product-specific headline alongside the broader sector move.
This automotive image sensor launch underlines the company’s strategy of expanding in advanced sensing solutions for vehicles, complementing its push into data-center related silicon photonics and AI power semiconductors as described by the UBS analysis on September 15, 2026.
Stock level and investor takeaway
STMicroelectronics stock closed at EUR 42.90 on Euronext Paris on September 14, 2026, in euros as the primary listing currency, leaving it 39.5 percent below the 52-week high of EUR 70.85 and still well above the 52-week low of EUR 18.20, a range that reflects both the recent AI-driven pullback and the longer-term appreciation built into the share.
STMicroelectronics stock key data
- Company: STMicroelectronics N.V.
- ISIN: NL0000226223
- Ticker: STM
- Trading venue: Euronext Paris
- Price (as of September 14, 2026): 42.90 EUR
- Market capitalization: [value] [currency] (as of September 14, 2026)
- Sector / Industry: Semiconductors
- Index membership: STOXX 600, CAC 40
