Bank of America: STMicroelectronics has strong growth potential in the coming years.

At a time when Bank of America upgraded its rating on STMicroelectronics stock from neutral to buy, Didier Scemama of the bank wrote in a research report that the European chipmaker has several end markets that could drive its growth in the coming years. "We believe the market severely underestimates STMicroelectronics' earnings potential for the next 2-3 years," he said. Scemama noted that as investment in artificial intelligence infrastructure continues to grow, the company will benefit from its optical interconnect business. He added that the company, a supplier to SpaceX, will also receive a boost from low-orbit satellites, as investment in this field is just beginning. Meanwhile, Scemama stated that the automotive and industrial end markets are recovering, which should also higher sales for STMicroelectronics. The stock price of STMicroelectronics rose by 1.1% to 62.21 euros.