STMicroelectronics: Q1 2025 as a catalyst
The financial results of STMicroelectronics for the first quarter of 2025 were announced on April 24. These impressive figures are set against the backdrop of a recovery in the semiconductor sector and have brought European semiconductor stocks, including likely Infineon, into focus.
Texas Instruments: Surprisingly strong performance
Texas Instruments reported an 11% increase in revenue for the first quarter, reaching $4.07 billion. Earnings per share stood at $1.28, significantly above analyst expectations of $1.08. For the second quarter, the company anticipates revenue between $4.17–$4.53 billion and earnings per share ranging from $1.21–$1.47, surpassing consensus estimates. Following the announcement, Texas Instruments’ stock rose by up to 5.5% in after-hours trading, a sign of confidence for the entire sector.
Impact on European semiconductor stocks
The results from STMicroelectronics and Texas Instruments suggest a broader recovery in the industry, although there are no specific figures available from Infineon. Analysts speculate an increased willingness to invest in analog chips and industrial electronics. Strong demand in industrial, automotive, and communications markets could also benefit European manufacturers. This is particularly supported by TI CEO Haviv Ilan, who rates the market conditions positively.
Forecast comparison
| Company | Q2 Revenue Forecast | Q2 Earnings per Share |
|---|---|---|
| Texas Instruments | $4.17–$4.53 billion | $1.21–$1.47 |
| Intel | ~$12 billion* | ~$0.01* |
*Intel data is extrapolated and may vary.
With exceeded expectations and optimistic prospects, the semiconductor market could experience a turning point, bringing positive effects for European companies such as Infineon.