On July 23, STMicroelectronics NV fell 17.65% in regular trading, trading at $54.4/share, with turnover of $136 million. The sharp decline was triggered by the company's Q3 revenue guidance falling short of market expectations, compounded by significant profit-taking after a 160% year-to-date rally.

STMicroelectronics reported Q2 adjusted EPS of $0.31, beating the consensus estimate of $0.27-0.28, while revenue of $3.49 billion also surpassed expectations of $3.38-3.47 billion. However, the company guided Q3 revenue at approximately $3.7 billion, below analyst expectations of $3.72-3.79 billion. Q3 gross margin guidance of approximately 37% also disappointed. CEO Jean-Marc Chery noted improving demand visibility and tightening supply across multiple product categories.

Citi analysts pointed out that the stock's 160% year-to-date gain had already fully priced in end-market recovery and data center AI revenue acceleration. Despite the company raising its data center revenue target to over $1 billion and projecting Q4 revenue above $4 billion, the near-term guidance shortfall prompted heavy selling. The decline also dragged European tech stocks lower, with the STOXX 600 falling 1% and peer Infineon dropping 5.6%.

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