US Stock Market Move | STMicroelectronics NV ADR RegS (STM.US) falls more than 17% with Q3 revenue guidance below expectations.

On Thursday, STMicroelectronics NV ADR RegS (STM.US) fell more than 17% to $54.16. In terms of news, STMicroelectronics NV ADR RegS issued performance guidance, benefiting from the boost to its business from the demand for artificial intelligence data centers. It is expected that revenue for the current quarter will increase. According to the company's statement, using the midpoint of the guidance range, third-quarter revenue is expected to increase by approximately 6.2% compared to the same period last year, reaching $3.7 billion. This number is slightly below the analyst average expectation of $3.79 billion. "The outlook indicates that various end markets are in the midst of cyclical recovery and AI/data center growth continues to accelerate, but the stock has more than doubled since January, reflecting growth expectations," analysts from Citigroup, including Andrew Gardiner, wrote in a report. "Without further upward momentum in expectations, the stock may come under pressure in the short term." The financial report shows that STMicroelectronics NV ADR RegS had a net revenue of $3.49 billion in the second quarter, a gross margin of 34.8%, operating profit of $187 million, net profit of $222 million (compared to a loss of $97 million in the same period last year), and diluted earnings per share of $0.24; the company's non-GAAP net profit reached $291 million, with diluted earnings per share of $0.31.