- In addition to another beat-and-raise quarter, with particular strength in gross margin, STMicro continues to build its order book, with a backlog already at least 10% above likely 2021 capacity.
- STMicro management reassured the Street on its Apple exposure, with good visibility in 3D sensing for at least three years.
- While the EV and ADAS opportunities are well-understood, investors still be underestimating STMicro's leverage to power management in industrial and renewables, and IoT demand growth.
- STMicro shares still offer a decent return on the basis of long-term revenue/FCF growth and near-term margins, but the risk of a cyclical correction is real, even if likely brief.
For further details see:
STMicroelectronics Stays On Track As A Top Power Play