Stock Movers Schneider Electric Up, Mercedes Upgraded, STMicro Gains
Dec 4, 2025
JPMorgan's bullish outlook on European capital goods is making waves, with upgrades for Schneider Electric and Siemens Energy leading the charge. Meanwhile, Bank of America shifts Mercedes-Benz to a neutral stance amid improving EV demand. Exciting developments in the semiconductor sector are fueled by positive news from Marvell Technology, boosting STMicro's shares. However, the looming threat of Chinese competition puts pressure on European automakers, raising concerns about the sustainability of the recent AI investment enthusiasm.
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European Capital Goods Poised For 2026
- JPMorgan sees European capital goods set up as the best in years driven by power, grid, data centers and PMIs.
- Schneider Electric and Siemens Energy stand to benefit from momentum into 2026 with strong free cash flow potential.
Look For Early Auto Recovery Signals
- Watch autos for signs of recovery as deregulation and clearer tariff guidance support the sector.
- Consider Mercedes, Renault and Porsche after Bank of America raised ratings amid improving EV demand for affordable models.
AI Spending Lifts European Chip Names
- European chip stocks gained on optimism around AI spending and read-throughs from U.S. peers like Marvell.
- STMicro and others benefit from expectations of rising AI chip production and repeat orders driving demand.