STM

TIER 1 · 5%RESEARCH PENDING

STMicroelectronics • Foundry / Materials • NYSE

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External Research

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Key Metrics

Mkt Cap$30B
Fwd P/E28.7x
Gross Margin33.9%
D/E0.12
Rev Growth-11.1%
Customer RiskHigh

Supply Chain Position

PIC100 SiPh platform in volume manufacturing. Multi-billion AWS contract. Photonics revenue $500M heading to >$1B in 2026.

Why Included

Punished for the auto downcycle (trailing P/E 180x on trough earnings) but photonics revenue is exploding. Quadrupling SiPh capacity by 2027. D/E 0.12. The market sees dying cyclical; the reality is structural photonics growth underneath.

Customers: AWS 'multi-billion' contract is dominant. High single-customer dependency but AWS is growing.

Red Flags

  • •Revenue declining -11.1% due to auto/industrial downcycle — earnings are at trough
  • •AWS contract concentration means any AWS SiPh strategy change is existential
  • •Gross margins compressed to 33.9% — need volume to return to healthy levels
  • •Automotive recovery timing is uncertain and could take longer than expected

Citrini Research Note

Citrini weight: 9%. Portfolio in line at 9.1%. AWS SiPh contract provides visibility.