STMicroelectronics NV (STM) experienced a sharp pre-market plunge of 13.50% on Thursday, according to movement data. The semiconductor stock's significant drop came shortly after the company released its quarterly financial results.

The company reported second-quarter adjusted earnings per share of $0.31, beating analyst estimates of approximately $0.27-$0.28, while revenue of $3.487 billion also exceeded expectations. However, STMicroelectronics guided for third-quarter revenue of $3.70 billion (plus or minus 3.5%), falling short of analyst forecasts ranging from $3.72 billion to $3.79 billion.

Analysts noted that the stock had already surged approximately 160% year-to-date, with expectations for end-market recovery and data center growth largely priced in. The guidance that failed to exceed consensus prompted significant profit-taking by investors, according to Citi analysts. Despite the company raising its AI data-center revenue targets for the second time this year, the market reaction reflected concerns that growth expectations were already fully valued in the stock price.