Are STMicroelectronics' (ENXTPA:STMPA) NFC and GaN Bets Quietly Redefining Its Competitive Edge?

• In late November 2025, STMicroelectronics announced new GaN-based smart power components for higher-efficiency appliances and industrial drives, and earlier unveiled its ST25DA-C secure NFC chip to simplify and secure Matter-compliant smart-home device onboarding.
• Together, these launches highlight how STMicroelectronics is targeting growth themes in connected homes and energy-efficient electrification with products aimed at easing design complexity and enhancing security.
• Next, we’ll examine how this push into NFC-enabled Matter devices and GaN motor-drive solutions may influence STMicroelectronics’ investment narrative.

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STMicroelectronics Investment Narrative Recap

To own STMicroelectronics, you need to believe it can turn its broad exposure to electrification, industrial automation, and connected devices into improving margins after a tough earnings year and ongoing restructuring. The new GaN motor-drive ICs and secure NFC Matter chip support that long-term thesis, but do not materially change the near term focus on restoring profitability and managing restructuring execution risk.

Among the recent announcements, the GaN based GANSPIN611 and GANSPIN612 motor drive solutions stand out, because they sit squarely in ST’s core smart power and industrial automation focus. If these products gain traction in appliances and factory equipment, they could reinforce one of the key catalysts investors are watching: a healthier industrial cycle that lifts utilization and supports the company’s cost saving and footprint reshaping efforts.

Yet, despite this progress, investors should be aware that restructuring execution risk and potential underutilization could still...

Read the full narrative on STMicroelectronics (it's free!)

STMicroelectronics’ narrative projects $15.5 billion revenue and $2.2 billion earnings by 2028. This requires 9.4% yearly revenue growth and an earnings increase of about $1.5 billion from $651.0 million today.

Uncover how STMicroelectronics' forecasts yield a €24.62 fair value, a 12% upside to its current price.

Exploring Other Perspectives

Six members of the Simply Wall St Community currently see STMicroelectronics’ fair value between €24.48 and €33.07, underlining how far opinions can spread. You should weigh these views against the company’s reliance on an EV and industrial upturn to support margins and consider exploring several contrasting takes before forming your own stance.

Explore 6 other fair value estimates on STMicroelectronics - why the stock might be worth just €24.48!

Build Your Own STMicroelectronics Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your STMicroelectronics research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free STMicroelectronics research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate STMicroelectronics' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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