Jim Cramer Says He “Would Be a Buyer of STMicro”

Company Overview - STMicroelectronics N.V. (NYSE:STM) is a semiconductor manufacturer that designs and produces electronic components, including sensors, power management solutions, and microcontrollers [2]. Investment Sentiment - Jim Cramer highlighted STMicroelectronics as a cheap and good investment opportunity, suggesting a willingness to buy the stock despite its valuation of approximately 40 times earnings compared to peers with growth [1]. - Hardman Johnston Global Equity Strategy initiated a position in STMicroelectronics, indicating confidence in the company's market position and future prospects [2]. Market Conditions - The analog semiconductor cycle is believed to have reached a trough in early 2025, following a post-pandemic period of oversupply and excess inventory that affected the industry through 2024 [2]. - Indicators such as growing customer backlogs, improved order signals, and better inventory visibility suggest a recovery in the near future, positioning STMicroelectronics to benefit from a restocking cycle [2]. Growth Opportunities - The company is expected to experience significant gross and operating margin leverage as underutilization costs decline and structural manufacturing optimizations take effect [2]. - Medium-term growth opportunities include increased content in new iPhone models and exposure to emerging markets such as LEO satellites and AI data centers, supporting structural expansion [2].