STM delivered a strong set of Q3 results, beating expectations. However, the softer outlook for its Q4, which is expected to be flattish sequentially, has justly frightened the market. STM still expects growth in FY23 thanks to its resilient exposure to the Auto and Industry end markets. AMS will be softer however and, as it has been one of STM’s most profitable divisions, this will impact the gross margin going forward.
