STMicroelectronics stock jumps on Mizuho bullish note.

Investing.com -- STMicroelectronics NV (NYSE: STM) shares rose 4.5% Thursday following a positive note from Mizuho analysts highlighting the company's attractive valuation and growth prospects.

STMicroelectronics stock climbed after Mizuho pointed to the chipmaker's low valuation relative to its earnings growth potential. The firm noted that STM is trading at approximately 0.3x price-to-earnings-growth ratio and 20x price-to-earnings, while projecting earnings per share growth of roughly 123% YoY in 2026 and 71% YoY in 2027.

Mizuho analysts commented that they "see STM as an attractive analog play, as it is currently: a) trading at low ~0.3x PEG and 20x P/E, with high EPS growth of ~123% y/y in C26E and ~71% y/y in C27E vs TXN/NXPI at 21%/19% for C27E. We also see it best positioned to benefit from main analog themes as b) it is the most exposed to AI DC build out tailwinds (15% revs) with growing content at $230M/GW, and a share winner on 800V NVDA racks, c) SiPho ramping with we believe AWS and Innolight, potentially scaling to $500M/y run rate by 2029E d) auto segment, despite softer 2026E, still benefiting from China BEV growth with higher content driving upside, e) expanding LEO satellite opportunity, as we currently expect a $1.6B TAM by 2029E (20% 2024-29E CAGR), and satellite launches accelerating."

The firm highlighted STM's exposure to artificial intelligence data center buildout, representing 15% of revenues with growing content at $230 million per gigawatt. Mizuho also noted the company's silicon photonics business ramping with potential customers including AWS and Innolight, which could scale to a $500 million annual run rate by 2029.

The analysts also pointed to growth opportunities in the automotive segment from China battery electric vehicle demand and an expanding low Earth orbit satellite market, which Mizuho expects to reach a $1.6 billion total addressable market by 2029.