Dana Blankenhorn: STMicroelectronics Waiting on the IoT STM expects the microcontroller market to heat up as the Internet of Things grows through the decade.

15/02/2020 - 09:57

The Internet of Things combines sensors, analysis software and communications. It brings previously inanimate devices under computer control. Self-driving cars are the best-known IoT niche. STM lists Tesla (NASDAQ:TSLA) and Intel’s (NASDAQ:INTC) Mobileye unit among its top 10 customers. But traffic lights, sewers, phone networks, and even biological processes, can be constantly monitored and controlled using STM microcontrollers. A poor first half of 2019 at STM was followed by a strong second half. This sent the shares up 85% over the last six months. At its Feb. 14 opening price of $31.29 per share, STM has a market cap of $28.5 billion against revenues of about $9.5 billion. Its price to earnings ratio of 28 is close to that of Taiwan Semiconductor (NYSE:TSM).