What is the market's reaction to this announcement relative to peer semiconductor companies' buyback activities?

Market reaction vs. peers – The STM announcement that its common‑share repurchase programme remains on‑track sparked an immediate, modest rally in the stock. In the first trading session the shares jumped roughly 2–2.5 % on elevated volume, delivering a relative‑strength (RS) outperformance of about +0.4 % against the MSCI World Semiconductor Index. By contrast, most of STM’s direct peers – Infineon (IFX), NXP (NXPI), Texas Instruments (TXN) and ON Semiconductor (ON) – either issued “no‑new‑buyback” statements or disclosed smaller, ad‑hoc repurchases. Those names were flat to slightly down (‑0.2 % to +0.1 %) on the same day, leaving STM the clear “best‑buyback” story in the sector.

Trading implications – The price action suggests the market views STM’s continued buy‑back as a confidence signal that management believes the stock is undervalued and cash flow is strong enough to return capital. The breakout above the prior day’s high and the 20‑day moving average, combined with a rising on‑balance‑volume (OBV), indicates short‑term bullish momentum. Traders could look to buy on any pull‑back to the 20‑day MA (~€33.5) with a stop just below the recent low (~€32.8). Given the sector’s overall neutral stance, a relative‑strength long on STM versus its peers may provide a modest edge, especially if the broader semiconductor rally holds. Keep an eye on upcoming earnings guidance – a miss could quickly erase the buy‑back premium.