STMicroelectronics’ (STM) advanced semiconductor technologies that support the needs of smart vehicles and other industrial applications have contributed immensely to the growth of all its product groups. So, given the company’s double-digit revenue growth, which has been driven by strong demand across all end markets, let’s find out if the stock is a good bet now. Read on.Based in Geneva, Switzerland, STMicroelectronics N.V. (STM) is an electronics and semiconductor manufacturer that operates in the United States, Europe and internationally. The company reached a milestone last month in delivering the first game-changing Stellar SR6 MCUs for new-generation vehicles. As electric vehicle (EV) sales increase, the chip manufacturer’s leading-edge technologies should continue to see strong demand.
The company’s strategic collaborations and strong demand in all end markets have helped its stock gain 34% over the past year and 9.4% over the past nine months. STM’s year-over-year net sales of microcontrollers and digital ICs and automotive and discrete group sales increased 42.2% and 38.4%, respectively, in its last reported quarter.
Closing yesterday’s session at $36.68, STM is trading 14.7% below its 52-week high of $43.02. The company’s promising earnings growth potential should help the stock deliver solid returns in the coming months.