European chip maker
rose on Thursday after its profit and revenue beat consensus expectations.
The supplier to
(ticker: TSLA) and
(AAPL) is enjoying strong semiconductor demand from automotive and industrial customers after shortages of chips hit the auto sector hard last year.
(ticker: STM) to defy a wider downturn in demand for chips signaled by industry bellwether
(TXN) on Tuesday.
“2022 was a year marked again by strong demand in Automotive and
Industrial, still impacted by supply-chain challenges due to continuing
shortages and capacity constraints,” CEO Jean-Marc Chery said in prepared remarks. “In the second half, we started to see a market softening in Personal Electronics and Computer Peripherals.”
reported a fourth-quarter net profit of $1.25 billion, on revenue of $4.42 billion. Analysts polled by FactSet had forecast a profit of $1.07 billion on revenue of $4.41 billion.
Shares in STMicroelectronics, which Barron’s wrote about favorably last April, were up 5.6% in premarket trading in New York.
The company expects 2023 net revenue between $16.8 billion and $17.8 billion, representing a growth range of 4% to 10%. Analysts at UBS said the range was ahead of consensus expectations of $16.5 billion.
STMicroelectronics plans about $4 billion in capital spending this year, up from $3.5 billion in 2022, mainly to increase its manufacturing capacity.
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