STMicroelectronics Q4 Revenue Edges Up as Auto Chip Demand Remains Weak

STMicroelectronics reported fourth-quarter revenue of $3.33 billion, up 0.2% year-over-year, ending a streak of consecutive declines. The growth was primarily driven by recovering chip demand in personal electronics, communication equipment, computer peripherals, and industrial machinery. However, the company noted that its automotive segment underperformed expectations, reflecting continued weakness in semiconductor demand recovery within the automotive sector. Its automotive customers include Tesla, Hyundai, Continental, and Mobileye. Looking ahead to the first quarter, the company expects revenue of approximately $3.04 billion, up from $2.52 billion in the same period last year, with a gross margin of 33.7%, slightly higher than 33.4% a year earlier, indicating further improvement in overall sales.