11 AI News and Ratings You Shouldn’t Miss

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

Number of Hedge Fund Holders: 18

STMicroelectronics N.V. (NYSE:STM) designs, develops and sells semiconductor products for automotive, industrial, and consumer applications worldwide.

On February 6, Bank of America downgraded STMicroelectronics to Neutral from Buy with a €23 price target, down from €29, favoring Infineon Technologies due to its strengths in AI server power management and automotive MCUs. The company’s management attributed weaker Q1 2025 revenue guidance to inventory corrections at major customers, Tesla’s market share adjustments, and lower capacity reservation fees. However, the company expects benefits from premium smartphone demand and MCU inventory stabilization later in the year. Cost reductions and manufacturing transitions are expected to improve margins from 2026 onward.

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