Yahoo Finance STMicroelectronics Stock Gains After EV Deal With Geely Auto - What's Going On?
STMicroelectronics NV (NYSE:STM) and Geely Auto Group have signed a long-term Silicon Carbide (SiC) supply agreement to enhance their collaboration on SiC devices. The chipmaker’s stock price gained after the update.
STMicroelectronics will provide SiC power devices for Geely’s mid-to-high-end battery electric vehicles, improving performance, charging speeds, and driving range.
They also established a joint lab to develop solutions for automotive electronics, advanced driver assistance systems, and new energy vehicles.
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Geely has adopted ST’s third-generation SiC MOSFET devices in its electric traction inverters, which are critical components in electric powertrains.
The partnership aims to accelerate innovation and boost both companies’ positions in the electric vehicle market.
Geely Auto sold 1.68 million vehicles in 2023, with NEV sales reaching 480,000 units, up 48% year-on-year.
In April, STMicroelectronics reported a fiscal first-quarter 2024 revenue decrease of 18.4% year-on-year to $3.47 billion, missing the analyst consensus estimate of $3.62 billion, driven by lower revenues in the Automotive and Industrial segments. EPS of $0.54 missed the analyst consensus estimate of $0.59.
The company issued cautious outlooks for its second quarter and fiscal 2024.
STMicroelectronics stock lost over 5% in the last 12 months. Investors can gain exposure to the stock via Return Stacked Bonds & Managed Futures ETF Veridien Climate Action ETF (NYSE:CLIA) and Columbia ETF Trust I Columbia Seligman Semiconductor And Technology ETF (NYSE:SEMI).
Price Action: STM shares are trading higher by 2.13% at $42.87 at the last check on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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