10 Most Oversold Semiconductor Stocks in 2024

2. STMicroelectronics N.V. (NYSE:STM)

Share price return in 2024: -48%

Number of Hedge Fund Holders: 22

STMicroelectronics N.V. (NYSE:STM) produces a wide array of analog, digital, and mixed-signal integrated circuits (ICs) and discrete devices for industrial, automotive, consumer electronics, and communication markets.

In 2024, STMicroelectronics N.V. (NYSE:STM) experienced a near 50% drop in its share price, largely due to persistent weakness in the automotive and industrial end markets, which negatively impacted the company’s overall financial performance. The stock declined by 13% up until mid-July, but the situation worsened significantly following weaker Q2 2024 results and a grim outlook across its major segments. The Industrial segment revenue declined by over 50%, Automotive by about 15%, and Personal Electronics by approximately 6%. Management’s comments were also pessimistic, highlighting that customer orders for Industrial did not improve and Automotive demand decreased during the quarter, contrary to their previous expectations.

Analysts maintain a broadly cautious view on STMicroelectronics N.V. (NYSE:STM), with the consensus still predicting an 8% downside. However, on February 18, Jefferies upgraded the stock to Buy from Hold and raised their price target. The analyst sees minimal downside to consensus estimates from this point and anticipates growth acceleration in the second half of 2025 due to post-inventory correction normalization, industrial demand recovery, and increased semiconductor content in new iPhone versions. The stock has risen by 6% so far this year.