By Nathan Vifflin
(Reuters) -STMicroelectronics’ chief executive said on Wednesday that the French-Italian chipmaker has seen signs of an upcycle — a period of increased market demand — which will boost its results in the coming quarters.
Chipmakers exposed to the automotive, industrial, and personal electronics markets like STMicro, have faced a multi-year long slump in orders, burdened by overcapacity, high inventories, and low demand.
But, speaking at an event in Paris hosted by BNP Paribas, CEO Jean-Marc Chery said STMicro would deliver at least the mid-point of its second-quarter guidance. It had forecast revenue of $2.71 billion at mid-point for the quarter in its last earnings report.
“The dynamic is pretty interesting. Why? Because quarter-to-date, the book-to-bill ratio is well above parity….. This means you are in a dynamic of upcycle,” he said.
Shares in STMicro were up 7.2% at 1108 GMT, topping France’s CAC40 Index, and the Italy 40.
(Reporting by Nathan Vifflin in Amsterdam, editing by Milla Nissi-Prussak and Matt Scuffham)
