Why STMicroelectronics N.V. (STM) Soared Last Week

We recently compiled a list of the 10 Companies That Performed Well Last Week. In this article, we are going to take a look at where STMicroelectronics N.V. (NYSE:STM) stands against the other stocks.

The stock market fell heavily into the red territory on Friday as investors sold off positions to mitigate risks from a series of macroeconomic factors.

The Dow Jones declined by 1.69 percent, the S&P dropped by 1.71 percent, and the tech-heavy Nasdaq nosedived by 2.20 percent.

Despite the broader market downturn, ten companies gained momentum, recording price growths on a week-on-week basis.

We have listed 10 companies that performed well last week. Note that shares performances were based on closing prices last Friday, February 21, as against their prices on February 14, or a week earlier.

To come up with last week’s advancers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A worker assembling the inner circuitry of a semiconductor product.

STMicroelectronics N.V. (NYSE:STM)

While suffering a 2.23-percent drop from Thursday’s price, STMicroelectronics N.V. (NYSE:STM)’s share price of $27.59 on Friday still marked a 12.7-percent jump from the $24.48 finish on February 14. In general, investors resorted to bargain-hunting following a rating upgrade from an investment research firm.

On Wednesday, STMicroelectronics N.V. (NYSE:STM) received a “buy” rating from analysts at Jefferies, an upgrade from the “hold” rating previously. It also earned a 47-percent higher price target of €34 versus the €23 set previously.

According to Jefferies, the rating was based on several key expectations, including a normalization of operations following inventory correction and increased components in the upcoming iPhone 17, coupled with a rebound in industrial demand.

Other growth drivers for STMicroelectronics N.V. (NYSE:STM) include Artificial Intelligence solutions, low-Earth orbit satellites, silicon photonics, and auto microcontroller units (MCU).

Overall STM ranks 8th on our list of the companies that performed well last week. While we acknowledge the potential of STM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than STM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.