ST(US:STM) Zhi Tong Cai Jing·2026-01-29 07:52Core Viewpoint - The demand for analog chips is showing signs of recovery, as evidenced by STMicroelectronics (STM.US) reporting better-than-expected Q4 revenue and Q1 guidance for 2026 [1] Financial Performance - STMicroelectronics reported Q4 revenue of $3.329 billion, a year-on-year increase of 0.2%, surpassing analyst expectations of $3.29 billion [1] - Gross profit decreased by 6.5% year-on-year to $1.172 billion, with a gross margin of 35.2% [1] - Operating profit fell by 66.0% year-on-year to $125 million; excluding a $141 million impairment charge from business restructuring, the operating profit would be $266 million [1] - Non-GAAP earnings per share were $0.11, down 70.3% year-on-year [1] - For Q1 2026, STMicroelectronics expects revenue of $3.04 billion, exceeding analyst expectations of $2.99 billion, with a projected gross margin of 33.7% [1] Market Context - STMicroelectronics is a joint venture between France and Italy, providing a wide range of chips, including high-performance power chips for Tesla (TSLA.US) and core chips for Apple (AAPL.US) [2] - The company heavily relies on U.S. customers, with about 20% of its revenue coming from Apple and Tesla, but lacks manufacturing facilities in the U.S., potentially leading to additional costs for customers [2] Industry Trends - Competitors like Texas Instruments (TXN.US) and Analog Devices (ADI.US) have also reported strong performance, indicating a potential recovery in the analog chip market [3] - Texas Instruments forecasts Q1 2026 revenue between $4.32 billion and $4.68 billion, with an expected earnings per share of $1.22 to $1.48 [3] - The global semiconductor market is gradually recovering, driven by AI demand, with analog chips experiencing tightening supply and longer lead times [4] - Analog chips play a crucial role in various applications, including communication, automotive electronics, and AI data centers, where they are essential for power management and signal processing [4] Supply Chain Dynamics - There is a notable shortage of certain analog chip models in automotive, industrial, and AI server sectors, primarily due to the reduction in 8-inch wafer production capacity by major manufacturers like Samsung and TSMC [5] - The global 8-inch wafer capacity is expected to decrease by 2.4% by 2026, contributing to the supply constraints in the analog chip market [5] - The World Semiconductor Trade Statistics (WSTS) anticipates continued strong demand for chips, including analog and MCU chips, entering a robust recovery phase in 2026 [5]