STMicro shares rise after Q3 beat fueled by Tesla and Apple chip demand

STMicro reported third-quarter revenue of $3.19 billion on Thursday and told investors it expects that number to surge to $3.28 billion in the fourth ￰0￱ company says rising orders from clients like Tesla and Apple are driving the ￰1￱ Jean-Marc Chery said the focus is on “accelerating innovation” and “reshaping our manufacturing footprint.” The projection still falls short of analyst ￰2￱ to a poll by LSEG, Wall Street was looking for $3.34 billion in Q4 sales and $3.12 billion in ￰3￱ so, STMicro is showing some signs of recovery in markets that have been wrecked since COVID: consumer electronics, auto, and industrial ￰4￱ reduces 2025 capex while continuing chip supply for Apple and Tesla While Texas Instruments on Wednesday spooked the market with a gloomy Q4 outlook, STMicro took a different tone, though it’s not throwing money around ￰5￱ company quietly slashed its 2025 capital expenditure plan to “slightly below $2 billion,” down from its previous range of $2 to $2.3 ￰6￱ blamed “current market conditions” but didn’t give much detail beyond ￰7￱ also gave a nod to its cost-cutting program, saying it “remains on schedule” even after some pushback in ￰8￱ plan has faced labor resistance in the country, but it seems STMicro is pushing forward regardless.

Meanwhile, the firm’s clients are preparing for big chip transitions of their ￰9￱ is expected to roll out its first 2-nanometer chip, the A20, inside next year’s iPhone ￰10￱ would replace the current 3-nanometer chips Apple uses, which are based on TSMC’s older ￰11￱ A20 will also be the base for the new M6 series chips used in ￰12￱ has already warned partners, including Apple, that the price for this new chip won’t be ￰13￱ are expected to jump by at least 50% compared to the 3-nanometer ￰14￱ upfront spending on the new manufacturing node and low yields are part of the ￰15￱ expect the chip could cost around $280 per unit, which would make it the most expensive component inside the ￰16￱ will either eat that margin or pass the cost to ￰17￱ at Tesla, Cryptopolitan reported that CEO Elon Musk’s custom AI chip, called AI5, will be manufactured by both Samsung in Texas and TSMC in Arizona.

“Our explicit goal is to have an oversupply of AI5 chips,” Elon told investors. “Any chips not used in cars or robots can be used in our data centers.” Get up to $30,050 in trading rewards when you join Bybit today