Mizuho Capital Markets raised its 12-month price objective for STMicroelectronics to $32.00 from $29.00 on Monday, but the firm did not change its Neutral rating on the semiconductor companys stock.
At the time of the note, the shares were trading at $32.51, above the newly issued target, and the companys market value stood at $28.93 billion. Independent analysis cited alongside the update indicates the shares are trading near their assessed Fair Value and have delivered a 34.36% total return over the last 12 months.
The upward revision to Mizuhos price target follows STMicroelectronics announcement of a commercial agreement with Amazon Web Services for future artificial intelligence data center deployments. Mizuho characterized the opportunity as capable of generating "multi-billion" dollars of incremental revenue through 2030, and said the arrangement could accelerate managements previously stated targets for AI data center and optical sales.
Specifically, Mizuho expects the agreement could bring forward the companys earlier goals of $1 billion in AI data center revenue and $500 million in optical revenue, both of which had been pitched for 2030 under prior guidance.
The note also called out structural elements of the commercial pact. It includes warrant shares that Mizuho warns could exert gross margin headwinds, yet the bank still views the agreement as likely to be operating margin-accretive overall and to carry upside revenue potential should deployments scale.
Despite the positive signal from the AWS tie-up, Mizuho elected to retain a Neutral stance, citing near-term analog headwinds that could weigh on results. The research brief acknowledged a number of longer-term growth avenues that could support the business, including low Earth orbit satellite opportunities, AI data center connectivity, 800V DC power enabled by GaN/SiC technology, and silicon photonics.
Balance sheet metrics referenced in the analysis show the company holds more cash than debt and has sustained dividend distributions for 28 consecutive years, with a current yield of 1.21%. The research note indicated additional proprietary analysis and supplementary research are available to subscribers on the issuing platform.
Recent company results and other broker activity were also noted. STMicroelectronics reported fourth-quarter 2025 earnings with an EPS of $0.11, a miss versus consensus of $0.28 and a negative surprise of 60.71%. Revenue for the quarter came in at $3.33 billion, slightly above the expected $3.29 billion.
Separately, BofA Securities raised its price target on STMicroelectronics from $29 to $34 while keeping a Neutral rating. That adjustment likewise referenced the expanded contract with Amazon Web Services, which BofA said supports the companys objective to reach e1 billion in data center revenue before 2030. BofA highlighted expected advancements across silicon photonics, analog, power, and microcontroller unit product lines as part of that commercial expansion.
The combination of the AWS commercial agreement, the mixed quarter driven by an EPS shortfall and modest top-line beat, and the differing target revisions from brokers leaves investors with a mix of upside revenue scenarios and near-term margin and analog execution risks.