STMicroelectronics defies chips gloom with Q1 beat

STMicroelectronics (STM.DE) surpassed first-quarter projections on Thursday, despite semiconductor industry slowdowns.

However, its shares tumbled nearly 4% in early trade as investors concerned the slowdown will eventually catch up with the company, which counts Apple (AAPL.O) and Tesla (TSLA.O) as customers.

STMicro announced first-quarter EPS of $1.10 on revenues of $4.25 billion, up 20%. IBES statistics from Refinitiv Eikon predicted $0.99 EPS and $4.19 billion in revenues.

STMicro defies the semiconductor downcycle by growing robustly. Investors want to know: “How long?” Investment platform Finimize analyst Paul Allison stated.

“Slightly less optimistic Wall Street and other analysts say so. Expect a slowdown later this year.”

STMicro CEO Jean-Marc Chery said the company was targeting full-year revenue of $17 billion to $17.8 billion to reach $20 billion by 2027.

“Our end markets have quite distinct trends. Chery predicted another year of revenue growth and profit.

Texas Instruments (TXN.O) predicted lower second-quarter revenue and profit on Wednesday.

STMicro’s quarterly net profits grew 40% to $1.04 billion.