STMicroelectronics (NYSE:STM) plunged 12% by afternoon market action on Thursday following its earnings report, but most of the semiconductor sector was in the green, rebounding nicely from Wednesday’s declines.
The Netherlands-based company expects net revenues for the full year 2025 to be $11.75B at midpoint, versus the consensus estimate of $11.79B. For the quarter in progress, STMicroelectronics expects net revenues of $3.28B at the midpoint compared to a consensus of $3.38B.
“So we are expecting revenues at $3.28B, an increase of 2.9% sequentially, plus or minus 350 basis points,” said STMicroelectronics CEO Jean-Marc Chery. “We expect our gross margin to be about 35%, plus or minus 200 basis points, including about 290 basis points of unused capacity charges. This business outlook does not include any impact for potential further changes to global trade tariffs compared to the current situation.”
In contrast, other semiconductor stocks increased on Thursday. Credo Technology (NASDAQ:CRDO) was leading the charge, surging 9% by early afternoon trading. Astera Labs (NASDAQ:ALAB) and Monolithic Power Systems (NASDAQ:MPWR) had both popped 6%.
Stalwarts such as Nvidia (NVDA), AMD (AMD), Broadcom (AVGO) and Taiwan Semiconductor Manufacturing (TSM) all edged up more than 1%. Micron Technology (NASDAQ:MU) had gained 3%.
The Philadelphia Semiconductor Index (SOX) was up 2.3%. This was stronger than the major indices, as the S&P 500 (SP500) was up 0.5%, the Dow Jones Industrial Index (DJI) had inched up 0.2% and the Nasdaq Composite Index (COMP:IND) had increased 0.8%.