What happened

Shares of STMicroelectronics (NYSE:STM) climbed 17.7% in July, according to data from S&P Global Market Intelligence, as investors grew more optimistic that the company would deliver strong second-quarter results -- which it did.

So what

STMicroelectronics rebounded in July after seeing its stock price fall nearly 13% in June on analysts' worries that tech stocks may be overdue for a correction. But the company's investors took a more optimistic outlook last month as they pushed STMicroelectronics up about 12% in the weeks ahead of its second quarter results, and another 5% after earnings were reported. 

Man touching a bar chart with his index finger.

Image source: Getty Images.

Investors were happy to see revenue in the second quarter increase by 12.9% year over year, to $1.92 billion, and gross margins improve from 33.9% in the year ago quarter to 38.3%.

The global semiconductor leader also made some modest gains in its largest revenue segment -- the Automotive and Discrete Group -- with revenue increasing by 4.7% year over year to $755 million. STMicroelectronics managed to meet analysts' consensus estimate of $0.17 earnings per share (EPS), with $151 million in net income.

Now what 

The company's share price is up a staggering 30% over the past 12 months, and investors could be in for more growth in the coming quarters. 

STMicroelectronics' CEO Carlo Bozotti said in a press release that, "Based on current booking activity and visibility on our anticipated key new program, we expect third quarter revenues to increase about 9% on a sequential basis, representing year-over-year growth of about 16.6% at the mid-point of our guidance range."

Management also expects another quarter of gross margin expansion,  to about 39%. All of those positives bode well for STMicroelectronics' continued prospects over the near-term. 

Chris Neiger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.