Demand Weakness for STMicro Across Various End Markets, Shares Still Undervalued; FVE Down to $50

Narrow-moat STMicroelectronics reported strong third-quarter results and provided investors with a decent fourth-quarter forecast. Chip demand from automotive and business-type industrial customers (such as factory automation equipment) remains robust, but the company is predictably seeing softness in personal electronics and consumer-type industrial products (such as power tools and home appliances). The weakness in consumer-type industrial products is new for the sector this quarter and was first signaled by ST’s peer, Texas Instruments, earlier this week.