STMicro Chalks Partnership To Develop GaN Technology, Stock Edges Lower: Retail Remains Extremely Bullish
Synopsis
The company’s partnership aims to leverage the advantages that GaN offers – high power density, efficiency, and reliability – to cater to the growing demand for data centers, thanks to artificial intelligence.
STMicroelectronics NV (STM) has inked a partnership with Innoscience Technology Holding Co. Ltd. to jointly develop GaN (gallium nitride) technology.
Shares of STMicro fell by nearly 1% in Monday’s regular trading session and extended the decline during after-market hours as technology stocks witnessed a downtrend under the cloud of the Trump administration’s tariff actions.
Innoscience is a Chinese manufacturer of GaN-on-Si (gallium nitride on silicon) products.
STMicro’s partnership aims to leverage the advantages that GaN offers – high power density, efficiency, and reliability – to cater to the growing demand for data centers, thanks to artificial intelligence.
GaN allows for smaller, lighter, and more power-efficient devices. It can also handle higher voltages and temperatures than a traditional silicon-powered device.
“First, ST will be accelerating its roadmap in GaN power technology to complement its silicon and silicon carbide offering. Second, ST will be able to leverage a flexible manufacturing model to serve customers globally,” said Marco Cassis, President, Analog, Power & Discrete, MEMS and Sensors of STMicroelectronics.
Retail sentiment on Stocktwits around STMicro remained in the ‘extremely bullish’ (91/100) territory, with message volumes at ‘extremely high’ levels.
Earlier, analysts at Bank of America (BofA) Securities raised their price target for STMicro to $28 from $24 while maintaining a ‘Neutral’ rating on the stock, according to The Fly.
Analysts at Jefferies underscored that the growth forecast for the company is set to accelerate from the second half of 2025, in part due to Apple Inc.’s iPhone 17 series utilizing more content from STMicro.
STMicro stock has declined more than 12% year-to-date.
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