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STMicroelectronics CEO Expects Stable Start to 2026 as Inventory Pressures Ease

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STMicroelectronics Chief Executive Jean-Marc Chery said on Wednesday he expects the chipmaker’s first-quarter 2026 revenue to remain at typical seasonal levels, signaling a steady recovery following a weaker-than-expected rebound this year.

Speaking at a Morgan Stanley conference, Chery forecast that first-quarter revenue would decline 10% to 11% from the upcoming fourth quarter, which the company projects at $3.28 billion. However, that still represents around 20% year-on-year growth, highlighting progress in clearing customer inventory.

“This is positive news confirming that we are almost free of material inventory correction,” Chery said, suggesting that the company’s prolonged inventory adjustment cycle is largely behind it.

Analysts surveyed by LSEG expect first-quarter revenue to reach $2.98 billion, in line with Chery’s guidance and roughly 10% lower than the previous quarter.

STMicroelectronics, one of Europe’s largest semiconductor manufacturers, has faced a slow recovery in demand from the automotive, industrial, and consumer electronics markets after an extended downturn marked by excess stockpiling across its customer base.

Shares of the company rose 1.4% at 1113 GMT following Chery’s comments, as investors welcomed signs of a normalization in supply and demand dynamics heading into 2026.

Singtel Sells $1.16 Billion Stake in Bharti Airtel to Fund Digital Investments

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Singapore Telecommunications (Singtel) has sold a 0.8% stake worth about $1.16 billion in India’s Bharti Airtel, as part of its ongoing plan to recycle assets and boost investments in digital infrastructure, the company announced on Friday.

Singtel’s investment arm Pastel sold 51 million shares of Bharti Airtel, India’s second-largest telecom operator, at 2,030 rupees ($23.10) per share — about 3.1% below the stock’s previous close. The transaction was executed through a private placement to institutional investors.

The sale is part of Singtel’s S$9 billion (US$6.6 billion) mid-term asset recycling program, which aims to raise funds for expansion in digital services, data centers, and next-generation connectivity.

Following the divestment, Singtel now holds a 27.5% stake in Bharti Airtel, down from 31.4% in 2022, continuing a gradual reduction of its holdings since first investing in the Indian company in 2000.

Singtel said the sale will generate an estimated S$1.1 billion ($805 million) in gains, benefiting from Bharti Airtel’s surging valuation — its shares have quadrupled since 2019, driven by stronger earnings and rising average revenue per user.

Investors reacted positively to the move, sending Singtel’s shares up about 3% to S$4.65 by midday trading in Singapore. Bharti Airtel shares, however, fell around 4.5% in Mumbai, with more than 55 million shares changing hands via block deals, according to LSEG data.

The deal underscores Singtel’s strategy to strengthen its balance sheet while maintaining a long-term presence in one of the world’s fastest-growing telecom markets.

European AI Adopter Stocks Slide as Powerful New Models Spark Investor Caution

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Shares of European companies investing heavily in artificial intelligence have faced a sharp selloff this week, as the emergence of more advanced AI models raises concerns about potential disruption across software, data analytics, and financial services sectors.

European software stocks, including Germany’s SAP (SAPG.DE) and France’s Dassault Systèmes (DAST.PA), fell sharply on Tuesday following a downgrade of U.S. rival Adobe (ADBE.O) by broker Melius Research. Since mid-July, shares in London Stock Exchange Group (LSEG.L), UK software firm Sage (SGE.L), and French IT consulting company Capgemini (CAPP.PA) have dropped 14.4%, 10.8%, and 12.3%, respectively.

These companies—often labeled AI adopters—have invested heavily in AI to enhance products and services, attracting investor interest amid a shortage of European AI suppliers. However, the release of more powerful AI models, such as OpenAI’s GPT-5 and Anthropic’s Claude for Financial Services, has prompted a reassessment of their long-term competitiveness. Kunal Kothari of Aviva Investors noted that each new AI iteration challenges the business models of data providers like LSEG.

While the broader European markets have posted modest gains—FTSE 100 up 2.5% and STOXX 600 up 0.6% since mid-July—high valuations have made AI adopter stocks particularly vulnerable. SAP trades at around 45 times earnings, compared with a STOXX 600 average of 17.

Investors are debating whether AI will “eat software,” as Nvidia CEO Jensen Huang famously predicted. Analysts caution that not all software companies are equally exposed. Firms with deeply embedded enterprise applications or proprietary data may retain a competitive edge. For example, UK credit data company Experian (EXPN.L) and Sage benefit from extensive integration into client workflows, making them less vulnerable to disruption.

Some experts view the selloff as a buying opportunity, noting that affected companies could leverage AI to boost earnings over time. However, market watchers warn that proving tangible returns from AI investments may be a race against the clock for major European software players.