STMicroelectronics' 15min chart shows RSI Oversold and KDJ Golden Cross.

Based on the 15-minute chart of STMicroelectronics, the RSI indicator has reached oversold levels, and the KDJ has formed a golden cross at 07/24/2025 11:45. This suggests that the stock price has experienced a significant drop, potentially exceeding its fundamental support levels, and is poised to rebound as the momentum shifts in favor of an upward trend. The stock has the potential to further increase in value as the KDJ's golden cross indicates a strong bullish signal.

Shares of STMicroelectronics (STM) slumped on Thursday following the semiconductor supplier's forecast for another quarter of lower chip sales and warnings about uncertainty from President Trump's tariffs. The European chip maker projected revenue of $3.17 billion for the third quarter, down 2.5% year-over-year but nearly 15% higher than the second quarter. Gross margin, a key metric in the semiconductor industry, is expected to be around 33.5% compared to 37.8% a year earlier, impacted by currency effects and costs [1].

Chief Executive Jean-Marc Chery noted that while revenue is projected to improve from the second quarter, the company operates in an uncertain environment. STMicroelectronics has not provided annual sales guidance. Shares in Paris slid 13% early Thursday and have dropped over 35% over the past 12 months [1].

The company's automotive division, a significant client of Elon Musk's Tesla, faced below-expected revenue in the second quarter. Tesla's net income dropped by 16% for the quarter, impacting STMicroelectronics' automotive sales [1].

Additionally, chip makers are seeking clarity on potential tariffs from President Trump. Trump threatened 30% tariffs on EU imports and is investigating specific tariffs for semiconductors under Section 232 of the Trade Expansion Act of 1962 [1].

Technical indicators suggest a potential rebound for STMicroelectronics' stock. The Relative Strength Index (RSI) has reached oversold levels, and the KDJ indicator formed a golden cross on July 24, 2025, at 11:45. This indicates a significant drop in stock price and a potential upward trend [2].

Despite the challenges, STMicroelectronics is restructuring its manufacturing footprint and cutting costs, aiming to reshape its operations. The company expects 5,000 employees to leave the group by 2027, including 2,800 job cuts announced in April [1].

References:
[1] https://www.marketscreener.com/news/stmicroelectronics-shares-slump-after-tesla-supplier-warns-of-uncertainty-2nd-update-ce7c5cd3dd8cf420
[2] Based on the 15-minute chart of STMicroelectronics