STMicroelectronics, which has a big facility in Malta, reported first quarter results above expectations on Tuesday.

But the next day, STM had a volatile session on the European stockmarkets. Its results were overshadowed by concerns over future profitability.

The stock was re-iterated as a ‘buy’ at Merrill Lynch. But Scott Geels at Sanford Bernstein said: “STMicro is losing market share due to the obsolescence of its business model – both growth and margins will be lower than historic averages.”