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Public Markets Investor, Opportunistic Buying & Cost-Basis Management
STMicroelectronics is low quality next to its "dumb chip" peers, weighed down by a messy international ownership structure where it matters who calls the shots. Italy and France may be the two worst major countries to do business in. That view holds against a post the author replies to, which cites its 90% share of chips for SpaceX's Starlink satellites and doubled 2026 and 2027 revenue targets. x.comÂ
Infineon trades at a discount to lower-quality global peers. STMicroelectronics, for one, is lower quality than Infineon. x.com x.comÂ
Tower Semiconductor's 2028 guidance makes its shares attractively valued around $180 despite competition from Silith, GlobalFoundries, STMicroelectronics and others. The stock previously felt too rich to add to. x.com x.comÂ
STMicroelectronics' results should keep improving, so betting against it is risky. @BabybusFL expects a broad semiconductor shakeout first that could hit names with and without earnings alike. x.comÂ
Infineon is a buy at its current multiple, now cheaper than STMicroelectronics', with more exposure to auto and power, while STM has more exposure to satellites. x.comÂ
Infineon, STMicroelectronics and NXP have little value upside left from humanoid robotics after rallying hard on the AI datacenter theme. Infineon's CEO said humanoids could eventually rival AI datacenters as a revenue opportunity, about 20% of sales, yet Infineon saw insider sales this week. Humanoids may create few real bottlenecks: about 60% of parts come from the existing auto supply chain, most value will likely accrue in China and OEMs will integrate vertically, leaving heavy competition. … Show more
STMicroelectronics has more upside than Infineon, though it is priced accordingly. It leads in space by selling RF chips for Starlink terminals, 60% of its data-center revenue comes from optics and microcontrollers rather than power chips, and it makes its own substrate wafers in Sicily while Infineon outsources. Infineon is the safer play: STM's margins fell to zero in the last trough versus Infineon's steady 10%, and competitors may take some of its Starlink business. x.com x.comÂ
Infineon is a better pick than STMicroelectronics because data-center power chip demand is set to inflect while its smartphone exposure is much lower. About a fifth of STM's revenue still comes from smartphones, which are vulnerable to soaring memory prices. Rising rack power densities and 800V rollouts should lift demand, and Infineon has very competitive SiC and GaN products. Data-center power chips could top a quarter of Infineon's sales, more counting energy storage. x.com x.comÂ
Pure or heavy silicon carbide players such as STMicroelectronics, onsemi and Wolfspeed look higher-risk and currently unappealing in the AI data-center shift to 800V DC power and solid-state transformers. The better risk/reward in that transition sits with power-electronics names positioned for it, such as Enphase and SolarEdge, whose bidirectional power-conversion know-how suits transformers that step 13 kV utility power down to 800V DC and must handle sudden GPU load swings. x.comÂ
STMicroelectronics is a European growth stock for the long-term space trend as a chip supplier to SpaceX and Tesla. It delivers more than 5 million chips a day for Starlink, needed for the phased-array antennas in its terminals, and has over 40 years of expertise in chips that withstand cosmic radiation. x.comÂ
Navitas is a one-customer concentration story facing heavy competition from tier-one suppliers. Its GaN portfolio winning Nvidia adoption played out, but STMicroelectronics and Infineon also supply Nvidia and are strong in GaN and SiC. GaN output may quadruple by 2030, yet SiC prices were hammered by Chinese capacity, unresolved, so revenue and margins could diverge sharply. Power and thermal efficiency are better played across these names than through Navitas alone. x.comÂ
