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Infineon Technologies AG (DE:IFX)
XETRA:IFX
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Infineon Technologies AG
(XETRA:IFX)
Rating:63Neutral
Price Target:
€38.00
▲(7.71% Upside)
Positive Factors
Earnings
Volumes improved and Step Up benefits materialized faster than expected, leading to a positive outlook for GM.
Long-Term Growth
Decarbonization and digitalization are key long-term drivers for Infineon, with automotive leading growth and expected topline growth driven by structural trends in the automotive segment.
Market Share
Infineon's Aurix MCU architecture is becoming the standard for software development at many automotive OEMs, cementing its position as the #1 auto MCU player.
Negative Factors
Automotive Slowdown
Infineon’s high exposure to the auto end market means it would see the highest impact if tariffs drive the auto market into a downturn.
Economic Risks
Prolonged economic downturn and semiconductor cyclicality pose risks to Infineon's business, which is highly dependent on the global economy.
Tariff Uncertainty
The FY25 outlook has been revised downward due to tariff uncertainties, impacting near-term performance.
Infineon Technologies AG (IFX) vs. iShares MSCI Germany ETF (EWG)
Market Cap
$46.15B
Dividend Yield0.99%
Average Volume (3M)3.91M
Price to Earnings (P/E)68.1
Beta (1Y)1.78
Revenue Growth-3.60%
EPS Growth-67.86%
CountryDE
Employees57,397
SectorTechnology
Sector Strength98
IndustrySemiconductors
Share Statistics
EPS (TTM)0.37
Shares Outstanding1,305,921,100
10 Day Avg. Volume3,995,995
30 Day Avg. Volume3,905,540
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue3.53
Enterprise Value/Gross Profit8.91
Enterprise Value/Ebitda14.21
Forecast
1Y Price Target
$42.61Price Target Upside20.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Infineon Technologies AG Business Overview & Revenue Model
Company DescriptionInfineon Technologies AG (IFX) is a leading global semiconductor manufacturer headquartered in Neubiberg, Germany. The company specializes in providing a wide range of semiconductor solutions across various sectors, including automotive, industrial power control, and security technologies. Infineon is renowned for its innovative products that enhance energy efficiency, communication, and security in electronic systems, with key offerings in power semiconductors, microcontrollers, and sensors.
How the Company Makes MoneyInfineon Technologies generates revenue primarily through the sale of semiconductor products and solutions. Its core revenue streams include automotive semiconductors, which cater to the growing demand for electric vehicles and advanced driver-assistance systems; industrial power control products that enhance energy efficiency in manufacturing and renewable energy applications; and security solutions that protect data and transactions in various industries. The company benefits from long-term partnerships with major automotive and industrial clients, which provide stable demand for its products. Additionally, Infineon's focus on research and development enables it to innovate continuously, capturing emerging market opportunities and enhancing its competitive position, thus contributing to sustained earnings growth.
Infineon Technologies AG Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q3-2025)
| % Change Since: 4.52%|
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
Infineon's earnings call highlighted strong sequential revenue growth, strategic acquisitions, and significant progress in AI-related revenues, contributing to a positive outlook. However, currency headwinds, challenges in the automotive market, and pricing pressures in China present notable concerns. The overall sentiment is balanced by successful cost management and margin improvements.Q3-2025 Updates
Positive Updates
Sequential Revenue Growth
Infineon reported a sequential revenue increase of around 3% in the third quarter, with expectations for further growth in the fourth quarter, marking the first year-over-year growth in two years. This was achieved despite a significant negative currency effect.
Automotive Ethernet Acquisition
Infineon has gained regulatory approvals for the acquisition of Marvell's Automotive Ethernet business, which will enhance its portfolio for software-defined vehicles.
Strong AI Data Center Growth
Infineon projects AI-related revenue to reach around EUR 600 million this fiscal year and approximately EUR 1 billion next year, driven by collaborations with companies like NVIDIA.
Improved Gross Margin
The adjusted gross margin rose to 43% in the third quarter, up from 40.9% in the previous quarter, aided by lower idle costs and benefits from the Step Up program.
Successful Cost Management
The Step Up program is yielding cost reductions sooner than expected, contributing positively to margins.
Negative Updates
Currency Headwinds
Infineon faced a substantial negative impact from currency fluctuations, particularly from a weaker U.S. dollar against the euro, which affected revenue and order backlog.
Concerns in Automotive Market
The automotive segment faces potential challenges, including tariff-related impacts and the risk of further destocking by customers due to financial constraints.
Inventory Challenges
Idle charges continue to be a margin drag, with inventory levels remaining higher than desired, although they are being managed down.
Pricing Pressure in China
There is ongoing pricing pressure in the Chinese market, particularly affecting IGBT-related products and silicon carbide.
Company Guidance
During Infineon's fiscal third quarter 2025 earnings call, the company provided guidance and updates on various key financial metrics and market trends. Jochen Hanebeck, the CEO, highlighted a 3% sequential revenue increase to EUR 3.704 billion, despite adverse currency effects. The segment result was EUR 668 million, with an 18% margin. Orders were at EUR 18 billion, affected by a weaker U.S. dollar. Hanebeck noted a 9% sequential growth in Green Industrial Power to EUR 431 million and an 8% increase in Power & Sensor Systems to EUR 1.053 billion. The company anticipates a modest upturn in the September quarter with expected revenues of EUR 3.9 billion, reflecting a 5% sequential growth. Full-year revenues are projected at EUR 14.6 billion, with a segment result margin in the high teens and a gross margin of at least 40%, bolstered by the Step Up program's early benefits. The outlook remains cautious due to geopolitical and macroeconomic uncertainties, notably potential tariff impacts.Infineon Technologies AG Financial Statement Overview
Summary
Infineon Technologies AG displays a robust financial structure with effective cost management and profitability. While there is a recent decline in revenue, the company maintains strong margins and a healthy balance sheet. Cash flow management is effective, though growth remains uneven, presenting potential areas for improvement.Income Statement
The income statement shows strong gross and EBIT margins, indicating effective cost management and operational efficiency. However, there is a notable decline in total revenue in the TTM period compared to the previous year, leading to negative revenue growth. Despite this, the company maintains a solid net profit margin, reflecting profitability resilience.72
Positive
Balance Sheet
The balance sheet reveals a healthy equity position with a favorable equity ratio, indicating strong asset financing through equity. The debt-to-equity ratio is reasonable, though it highlights potential leverage risks. The return on equity is respectable, showcasing efficient capital utilization.68
Positive
Cash Flow
Cash flow analysis presents positive operating cash flow relative to net income, suggesting effective cash management. Free cash flow remains positive, although growth is inconsistent due to varying capital expenditures. The current cash flow position supports operational and investment needs.65
Positive
| Breakdown | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.96B | 16.31B | 14.22B | 11.06B | 8.57B |
| Gross Profit | 6.07B | 7.41B | 6.13B | 4.26B | 2.78B |
| EBITDA | 4.18B | 5.81B | 4.51B | 3.01B | 1.87B |
| Net Income | 1.30B | 3.14B | 2.18B | 1.17B | 368.00M |
Balance Sheet | |||||
| Total Assets | 28.64B | 28.44B | 26.91B | 23.33B | 22.00B |
| Cash, Cash Equivalents and Short-Term Investments | 2.20B | 3.59B | 3.72B | 3.92B | 3.23B |
| Total Debt | 5.17B | 5.11B | 6.05B | 6.92B | 7.33B |
| Total Liabilities | 11.42B | 11.39B | 11.97B | 11.93B | 11.78B |
| Stockholders Equity | 17.22B | 17.04B | 14.94B | 11.40B | 10.22B |
Cash Flow | |||||
| Free Cash Flow | 61.00M | 966.00M | 1.67B | 1.57B | 712.00M |
| Operating Cash Flow | 2.78B | 3.96B | 3.98B | 3.06B | 1.81B |
| Investing Cash Flow | -2.17B | -2.26B | -2.44B | -2.28B | -7.17B |
| Financing Cash Flow | -615.00M | -1.30B | -1.87B | -885.00M | 6.27B |
Infineon Technologies AG Technical Analysis
Positive
35.28
Price Trends
35.90
Negative
33.39
Positive
33.12
Positive
Market Momentum
-0.38
Positive
48.60
Neutral
60.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:IFX, the sentiment is Positive. The current price of 35.28 is below the 20-day moving average (MA) of 35.75, below the 50-day MA of 35.90, and above the 200-day MA of 33.12, indicating a neutral trend. The MACD of -0.38 indicates Positive momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 60.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:IFX.
Infineon Technologies AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | €1.49B | 11.87 | 23.45% | 1.14% | -2.03% | 20.37% | |
68 Neutral | €589.91M | 10.39 | 22.01% | 0.97% | 42.54% | 174.07% | |
63 Neutral | $46.15B | 68.11 | 6.85% | 0.99% | -3.60% | -67.86% | |
62 Neutral | £509.45M | 28.26 | 0.75% | 2.81% | 3.33% | -21.49% | |
61 Neutral | €1.53B | 14.06 | 13.52% | 1.11% | 0.59% | -11.99% | |
46 Neutral | €1.12B | 37.94 | 1.51% | 0.54% | -0.55% | -73.49% |
* Technology Sector Average
Performance Comparison
DE:IFX
Infineon Technologies AG
35.29
5.26
17.52%
DE:AIXA
AIXTRON
13.55
-4.25
-23.86%
DE:WAF
Siltronic
36.10
-36.53
-50.30%
DE:ELG
ELMOS Semiconductor
87.20
13.71
18.66%
DE:SMHN
Suss Microtec
29.70
-27.06
-47.67%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.