STMicroelectronics NV (STM) experienced a significant intraday decline of 13.06% on Thursday, marking one of the stock's worst trading sessions in recent memory.

The sharp drop came despite the company reporting better-than-expected second-quarter revenue of $3.49 billion and raising its AI data-center sales targets. Analysts noted that the stock's Q3 revenue guidance of $3.70 billion slightly missed market expectations of $3.72 billion, while earnings before interest, taxes, depreciation and amortization of $679 million fell well short of the $797.7 million analysts had forecast.

Citi analysts pointed out that STMicroelectronics shares have more than doubled in value since January, already reflecting a recovery across its end markets and acceleration in data-center revenue. With the second-quarter results and guidance roughly in line with consensus but lacking upward estimate revisions, shares faced selling pressure as investors concluded that growth expectations were already priced into the stock.