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(Sharecast News) - Shares in STMicroelectronics plunged on Thursday, after second-quarter numbers from the European chipmaker disappointed investors, despite ongong robust demand from datacentres.
Net revenues were $3.5bn in the three months to 27 June, up 26% year-on-year and ahead of consensus, while net income was $222m. Last year the company posted a $97m loss.
However, looking to the current quarter, and STMicro's forecast for revenues of $3.7bn was below consensus. Second-quarter EBITDA of $679m also missed expectations.
Management struck a confident note and boosted its revenue ambition for datacentres to more than $1bn in the current year and $2bn in 2027, assuming conditions remained unchanged. "This confirms STMicro's strong position in the evolving AI datacentres," said chief executive Jean-Marc Chery.
"During the quarter, demand increased further, with strong bookings in all end markets. We saw improved visibility and signs of a tight supply in several product categories."
However, that was not enough to stop the share price tumbling, and by 1245 BST, the Paris-listed stock had slumped 15%, while in the US, the shares had shed 14% in pre-market trading.
Founded in 1987 through the merger of two French and Italian semiconductor businesses, STMicro is incorporated in the Netherlands and headquartered in Switzerland. Clients include SpaceX and Apple.
David Morrison, senior market analyst at Trade Nation, called the selloff "yet another worrying omen for chip stocks".
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