STMicroelectronics Jumps 9.3% on AWS Chip Deal with 24.8M Share Option
STMicroelectronics shares surged 9.3% after unveiling a multi-year deal with AWS to supply advanced chips and granting the cloud giant an option to acquire up to 24.8 million STM shares over seven years. The stock hit its highest level since June following the announcement.
1. AWS Partnership Details
STMicroelectronics agreed a multi-year contract with Amazon Web Services to supply advanced semiconductors. The deal grants AWS the right to purchase up to 24.8 million STMicroelectronics shares over the next seven years, aligning cloud infrastructure growth with STM’s chip roadmap.
2. Stock Market Reaction
Shares jumped 9.3% on the news, marking the largest daily gain since a 10.7% rise last June, and reached their highest level since that month. Investor enthusiasm reflects expectations of significant revenue contributions from the AWS collaboration.
3. Options Flow and Volatility
Options volume spiked to 15,023 contracts—13,000 calls and 2,023 puts—2.6 times the typical daily level, with February 34 and May 35 calls most active. Implied volatility stands at 42%, in the low 22nd annual percentile, while the firm’s volatility score is 96 out of 100.
4. Performance Metrics
Over the past 12 months, STMicroelectronics shares have climbed 43.2%, and they are up 24% year-to-date, underscoring sustained momentum since being highlighted as a top stock pick for 2025.