Despite the ongoing chip shortage and other supply chain disruptions, the auto industry continues to witness sustained demand, driven by the growing adoption of electric vehicles (EVs) and supportive government policies. Given the favorable industry backdrop, shares of automotive chipmaker STMicroelectronics N.V. (STM) have seen considerable investor interest lately because of its fundamental strength and solid growth prospects.
Headquartered in Geneva, Switzerland, STM produces sensors and microcontrollers for cars, industrial machinery, and smartphones. The company operates through three segments: Automotive and Discrete Group (ADG); Analog, MEMS, and Sensors Group (AMS); and Microcontrollers and Digital ICs Group (MDG). The automotive market accounts for more than a third of the company’s revenues.
