Infineon Technologies AG (IFX) AI Stock Analysis

• Market Cap: $60.75B
• Dividend Yield: 0.95%
• Average Volume (3M): 4.03M
• Price to Earnings (P/E): 59.1
• Beta (1Y): 1.88
• Revenue Growth: -1.96%
• EPS Growth: -21.55%
• Country: DE
• Employees: 57,397
• Sector: General
• Sector Strength: N/A
• Industry: Semiconductors
• EPS (TTM): 0.35
• Shares Outstanding: 1,305,921,100
• 10 Day Avg. Volume: 3,650,916
• 30 Day Avg. Volume: 4,030,826
• PEG Ratio: -1.95
• Price to Book (P/B): 2.61
• Price to Sales (P/S): 3.03
• P/FCF Ratio: 31.35
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 4.58
• Enterprise Value/Gross Profit: 11.63
• Enterprise Value/Ebitda: 19.22
• 1Y Price Target: $48.36
• Price Target Upside: 3.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: €49.00 ▲(4.97% Upside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

The score is driven primarily by solid but cooling financial performance—strong TTM revenue rebound and a stable balance sheet, offset by materially lower margins/returns and only moderate cash conversion. Technicals are moderately supportive but not strong enough to overcome a demanding valuation (high P/E and low yield). Earnings-call tone is cautious: moderate growth outlook with notable AI data center strength, but free-cash-flow pressure, idle costs, and macro/geopolitical headwinds temper confidence.

Positive Factors

Diversified market position & product leadership

Infineon’s broad product set (microcontrollers, sensors, power semiconductors) across automotive, industrial power and security creates durable demand exposure. Diversified end-markets (EVs, renewables, smart devices) reduce single-market cyclicality and support steady multi-year revenue streams.

Strong TTM revenue rebound and solid gross margin

A sharp TTM revenue rebound to ~€14.9B with a ~39% gross margin demonstrates resilient end-market demand and underlying product-level profitability. This level of gross margin provides structural cushion to absorb cyclical cost swings and supports long-term reinvestment capacity.

AI data-center momentum and strategic deals

Rapid AI power revenue growth (nearly 3x to >€700m) plus strategic moves (Marvell automotive-ethernet acquisition, NVIDIA collaboration, Dresden fab investments) represent structural product diversification into high-growth, higher-ASP segments that can sustain mid-term revenue and technology leadership.

Negative Factors

Material margin compression versus prior peak

Operating and net margins have fallen sharply from 2022–2023 highs, indicating sustained pricing, mix or cost pressures. Lower margins reduce internal cash generation and return on capital, limiting flexibility for capex, R&D or shareholder returns over the medium term.

Rising debt and higher leverage

Debt increased materially, raising leverage despite a substantial equity base. Higher indebtedness reduces balance-sheet flexibility and raises interest and refinancing risk, which is meaningful for a cyclical semiconductor business facing uneven cash flows and ongoing capex commitments.

Cash-flow conversion weakness and reported FCF shortfall

Negative reported FCF in FY2025 and a low FCF-to-net-income ratio (~0.43) point to working-capital and investment drag. Weak cash conversion constrains the company’s ability to fund growth, reduce debt or raise distributions without relying on external financing.

Infineon Technologies AG Business Overview & Revenue Model

Company Description

Infineon Technologies AG designs, develops, manufactures, and markets semiconductors and related system solutions worldwide. Its Automotive segment offers automotive microcontrollers; 3D ToF, magnetic, and pressure sensors; discrete power semiconductors; IGBT modules; industrial microcontrollers; power and radar sensor integrated circuits (ICs); transceivers; silicon carbide diodes, MOSEFTs, and modules; and voltage regulators for use in assistance and safety systems, comfort electronics, infotainment, powertrain, and security products. The company's Industrial Power Control segment provides bare dies, discrete IGBTs, driver ICs, SIC diodes, and IGBT modules and stacks for home appliances, industrial drives, industrial power supplies, industrial robotics, industrial vehicles, and traction, as well as for energy generation, storage, and transmission. Its Power & Sensor Systems segment offers gas sensors, MEMS microphones, and pressure sensors chips; discrete low-voltage, mid-voltage, and high-voltage power MOSFETs; control ICs; customized chips; GaN power switches; GPS low-noise amplifiers; low-voltage and high-voltage driver ICs; radar sensor ICs; RF antenna switches and power transistors; transient voltage suppressor diodes; and USB controllers for use in audio amplifiers, automotive electronics, BLDC motors, cellular communications infrastructure, electric vehicle charging stations, human machine interaction, Internet of Things, LED and conventional lighting systems, mobile devices, and power management applications. The company's Connected Secure Systems segment provides connectivity solutions, embedded security controllers, microcontrollers, and security controllers for authentication, automotive, consumer electronics, government identification document, Internet of Things, mobile communication, payment system, ticketing, access control, and trusted computing applications. Infineon Technologies AG was founded in 1999 and is headquartered in Munich, Germany.

How the Company Makes Money

Infineon generates revenue primarily through the sale of semiconductor products across its various sectors. The automotive segment, which includes products for electric vehicles and advanced driver assistance systems, is a significant revenue driver. Additionally, the industrial power control segment contributes to their earnings through solutions for energy efficiency and renewable energy. The company's revenue model is bolstered by long-term partnerships with leading automotive and industrial firms, as well as investments in research and development to maintain a competitive edge in technology. As demand for semiconductors continues to grow, particularly in the context of digital transformation and the shift towards sustainable energy solutions, Infineon benefits from increasing market opportunities and a diverse product portfolio.

Infineon Technologies AG Financial Statement Overview

Summary

Revenue has rebounded strongly on a TTM basis, but profitability and returns have compressed sharply from 2022–2023 highs (TTM gross ~39%, operating ~11%, net ~6.9%; ROE ~6%). The balance sheet remains reasonably levered (debt-to-equity ~0.49) but debt has risen, and while free cash flow is positive and improving, cash conversion metrics are modest.

Income Statement

TTM (Trailing-Twelve-Months) revenue is ~€14.9B, showing a sharp rebound in growth versus the latest annual period (TTM growth +162% vs. -2% annual), but profitability has clearly cooled from the 2022–2023 peak. Gross margin is ~39% and operating margin ~11% in TTM, well below 2023 levels (gross ~45%, operating ~25%), and net margin is ~6.9% versus ~19% in 2023—suggesting meaningful cyclical/price or cost pressure. Strength: still solid gross profitability for semiconductors; weakness: compressed operating and net profitability and a multi-year downshift from prior highs.

Balance Sheet

Leverage remains moderate with TTM debt-to-equity around 0.49 and equity of ~€16.8B against ~€30.7B of assets, indicating a substantial capital base. However, balance-sheet risk has increased versus 2023–2024 as total debt rose to ~€8.2B (from ~€5.1B), pushing leverage higher. Returns on equity are positive but muted in the current period (TTM ~6%), down sharply from 2023 (~18%), reflecting the earnings slowdown. Strength: still reasonable leverage and strong equity base; weakness: rising debt and lower returns.

Cash Flow

TTM operating cash flow is solid at ~€3.1B and free cash flow improved to ~€1.34B, with strong reported free-cash-flow growth versus the prior annual period. That said, cash conversion is not particularly strong: free cash flow is less than half of net income (TTM ~0.43), and operating cash generation relative to earnings is also modest in the provided data (~0.54), implying working-capital/investment drag. Strength: positive and improving free cash flow; weakness: weaker cash conversion versus accounting profits.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	14.90B	14.66B	14.96B	16.31B	14.22B	11.06B
Gross Profit	5.87B	5.75B	6.07B	7.41B	6.13B	4.26B
EBITDA	3.55B	3.51B	4.18B	5.81B	4.51B	2.99B
Net Income	1.02B	1.01B	1.30B	3.14B	2.18B	1.17B
Balance Sheet
Total Assets	30.74B	30.47B	28.64B	28.44B	26.91B	23.33B
Cash, Cash Equivalents and Short-Term Investments	1.85B	2.10B	2.20B	3.59B	3.72B	3.92B
Total Debt	8.23B	7.22B	5.17B	5.11B	6.05B	6.92B
Total Liabilities	13.90B	13.42B	11.42B	11.39B	11.97B	11.93B
Stockholders Equity	16.84B	17.05B	17.22B	17.04B	14.94B	11.40B
Cash Flow
Free Cash Flow	1.34B	1.42B	61.00M	966.00M	1.67B	1.57B
Operating Cash Flow	3.09B	3.22B	2.78B	3.96B	3.98B	3.06B
Investing Cash Flow	-3.97B	-4.57B	-2.17B	-2.26B	-2.44B	-2.28B
Financing Cash Flow	905.00M	920.00M	-615.00M	-1.30B	-1.87B	-885.00M

Infineon Technologies AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 46.68 is above the 20-day moving average (MA) of 43.00, above the 50-day MA of 40.65, and above the 200-day MA of 36.05, indicating a bullish trend. The MACD of 1.50 indicates Negative momentum. The RSI at 71.06 is Negative, neither overbought nor oversold. The STOCH value of 85.24 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIXA	78 Outperform	€2.72B	28.53	10.99%	0.88%	-3.93%	-20.93%
ELG	74 Outperform	€2.43B	21.70	22.08%	1.08%	-5.55%	21.30%
SMHN	70 Outperform	€995.92M	17.68	19.94%	0.78%	34.77%	52.20%
IFX	59 Neutral	$60.75B	59.13	6.16%	0.95%	-1.96%	-21.55%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
WAF	52 Neutral	€1.64B	-60.45	-1.40%	0.43%	-5.17%	-128.32%