Following a first-quarter performance that the chipmaker referred to as the year's lowest point, STMicroelectronics anticipated improved sales for the second quarter on Thursday.
Early trading saw a four percent increase in the company's shares, propelling it to the top of France's major index, the CAC 40.
Chipmakers like STMicro, NXP, and Siltronic that are exposed to the automotive and industrial markets have seen a decline in revenues for several years. As a result, in the first quarter, STMicro's operational income fell 99.5 percent year over year.
In the second quarter, one of the biggest chipmakers in Europe anticipates revenue of $2.71 billion, 16.2 percent less than the previous year but higher than experts' projections of $2.62 billion.
According to STMicro, the outlook does not account for the effects of any future adjustments to international trade duties.
Its first-quarter sales of $2.52 billion was in line with its own $2.51 billion expectation.
According to LSEG, analysts were anticipating a comparable figure.
STMicro did not offer guidance for the entire year. Due to little visibility and a persistent client inventory correction, it had stated in January that it was too early to make any predictions for 2025.
Compared to 122 days at the conclusion of the previous quarter, STMicro's inventory increased even more during the first quarter, reaching 167 days' worth of sales.
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A cyclical resurgence in industrial demand across all categories and geographies led U.S. chipmaker Texas Instruments to expect second-quarter revenue above Wall Street estimates on Wednesday.