STMicroelectronics

KBC sees greater scope for coordinated U.S.-EU funding in health care, clean energy, and defense.

Deutsche Bank flagged potential regulatory headwinds on data center expansion, with negative read-through for European suppliers, including STMicroelectronics, Schneider Electric, and Nokia.

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Well, this is what European tech stocks look like this morning.

Key names such as ASML and STMicro are under pressure after those disappointing earnings stateside.

For FTSE 100 bucking the trend.

That's mainly due to BP's results.

Royal Caribbean, plus 5%, also benefited from better-than-expected earnings and an increase in its full-year profit forecast, confirming the strength of demand for cruises despite the surge in oil prices.

The rally spread to Europe, where ASML, Schneider, STMicroelectronics, and virtually every other company with a claim on the AI boom also benefited.

In Asia, SK Hynix went into overdrive with a triple boost, better-than-expected earnings, a colossal dividend payout, and a promise to make an eye-watering investment in the United States.

In Wall Street speak, this translates as, "...profits are still heading higher, the company is confident enough to reward shareholders, and its visibility is so good that it can commit to an investment equivalent to Georgia's annual GDP." Not everyone joined the rally, however.

Et ça nous amène à un autre problème qui est : quels sont les avantages compétitifs ? Quels sont les, les, les éléments dont disposent les Européens que les autres n'ont pas ou pas suffisamment ou pas aussi bien et qui nous donnent une capacité, finalement, à contraindre ? Euh, ça, c'est plus de la politique pour le coup, mais, euh, on le voit bien que dans le cas des semi-conducteurs, on a en Europe, en fait, là, tu mentionnes Soitec et évidemment-

On a STMicro, on a ASML, tu l'as dit.

D'autres entreprises.

Et, euh, elles sont parfois dans un chemin critique.

But Oracle is not dramatically behind, shall we say.

But what's interesting is that you're also seeing rise in these credit default swaps and other names like NVIDIA that you would think would be super safe, like STMicro, like SpaceX.

And so CoreWeave is the canary in the coal mine, but it also signals what's going on in the rest of the market.

Right now, credit default swaps on CoreWeave are signaling there's about a Two-thirds chance that they'll go default in the next five years.

Every comparison also depends on defining the product the same way, since a bare die and a packaged component sit at different stages of production.

STMicroelectronics, ST, in a footprint study of a microelectromechanical system's MEMS sensor published on its corporate site, describes front-end manufacturing as producing wafers and forming integrated circuits on them.

Back-end manufacturing packages the chip so it can connect to a circuit board and stay protected.

The study covers raw materials, production, transport, use, and end of life, counting only the chip's own electricity during use.

Mm

... with all the automotive going down and similar, but we still have sovereign semiconductor capability, you know, STMicroelectronics, Infineon, uh, Osram, uh, and you name it.

TSMC is also building, uh, about to open a plant in, in, in, in Germany, and we have all the defense primes, uh, from Swedish to Norwegian to French, uh, you know, Saab, Kongsberg, uh, Thales, Safran, uh, Rheinmetall, and similar.

We have huge and very deep, uh, industrial capability and also ability to manufacture.

A check on some of the European chip names in focus today as well.

Arm Holdings, ASML, STMicroelectronics, Infineon, all anywhere from 1 to 7.5% lower for Infineon in today's trade.

This is after steep selling in the Asian chip names as well.

You can kind of see some of those moves there with SK Hynix, Samsung, Tokyo Electron, Advantest Corporation, all down anywhere from 6.5 to 15% for Advantest in Japan trading.