Morgan Stanley’s 15 Best European AI Stocks

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

Number of Hedge Fund Holders: 18 

STMicroelectronics N.V. (NYSE:STM) is a Swiss firm that designs, develops, manufactures, and sells semiconductor products in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. In August last year, Morgan Stanley analyst Lee Simpson had an Equal Weight rating on the stock with a price target of €35. Simpson, although optimistic about the long-term outlook, was skeptical about near-term catalysts for the stock. In a note, the analyst highlighted that the pressure on the shares, due to the long-running nature of a cyclical trough, would continue until 2025. Presently, the shares are trading at around €23. In earnings for the year 2024, the firm recently reported net revenues of $13.27 billion, gross margin of 39.3%, operating margin of 12.6%, and net income of $1.56 billion.