Mizuho raised its price target for STMicroelectronics (STM) shares to $68 from $56, maintaining an Outperform rating. The stock currently trades at $60.96, up 139% over the past year and 174% in the last six months.
The firm cited increasing AI server content reaching $230 million per gigawatt as customers transition to 800-volt architectures. Silicon photonics ramps are expected to accelerate into 2027.
STMicroelectronics indicated AI revenue could exceed $1 billion in 2026. Mizuho based its new target on 30 times its fiscal 2027 EPS estimate, up from approximately 25 times previously. The company trades at a P/E ratio of 375, reflecting elevated growth expectations.
Low Earth orbit satellite applications represent a serviceable addressable market estimated at $2.9 billion by 2030. Electric vehicle applications also remain a key growth driver.
In other recent news, STMicroelectronics reported mixed Q1 2026 earnings. EPS missed at $0.13 vs. $0.17 forecast, but revenue beat at $3.1 billion vs. $3.04 billion. Mizuho, UBS, Craig-Hallum, and Baird all raised price targets.
