STMicroelectronics Share Reaction and Barclays Upgrade
STMicroelectronics (STM) shares rose approximately 4% on Monday after Barclays upgraded the chipmaker from Underweight to Equal Weight and nearly doubled its price target to $65 from $34. The prior Underweight rating had been driven by gross‑margin concerns, which Barclays now says are no longer valid as the revenue outlook improves across multiple segments.
Barclays analysts, led by Simon Coles, highlighted upside risks related to price increases, optical strength and satellite revenues, and they are forecasting STM’s 2027 revenue to be about 6% ahead of consensus estimates. The bank noted a modest risk that STM’s guidance for the third quarter could fall below seasonal expectations because of Apple‑related seasonality, but expects optical revenues to accelerate materially in the fourth quarter, delivering above‑seasonal growth.
In its forward‑looking model, Barclays projects AI‑related revenues to reach €2.3 billion in 2027, up from roughly €1 billion in 2026. Satellite revenues are expected to climb to €1.3 billion in 2027, compared with a range of €600 million to €900 million in 2025‑2026.
Additional Analyst Actions Across Technology Hardware
Barclays also raised its price target for TSMC to $625 from $470, citing strong demand for advanced logic wafer supply following an Asia‑supply‑chain trip. The target for SK Hynix was increased to €2,900 from €2,300, reflecting materially higher HBM pricing assumptions for 2027 that drive revenue estimate upgrades of more than 20%.
The bank lifted its ASML target to €2,000 from €1,900 and now models €52 billion of revenue for ASML in 2027. Infineon’s target was raised to €90 from €63 as Barclays adopted a more positive view on the up‑cycle.
Targets for both Nokia and Ericsson were modestly increased, driven largely by foreign‑exchange tailwinds rather than any fundamental demand improvement; both stocks remain underweight.