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Infineon Technologies AG (DE:IFX)
XETRA:IFX
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Infineon Technologies AG
(XETRA:IFX)
Rating:65Neutral
Price Target:
€40.00
▲(12.17%Upside)
Positive Factors
Growth Opportunities
Infineon is exposed to 3 of the highest growth opportunities in semis: electrification, software-defined vehicles, and AI power.
Market Leadership
Infineon maintains market leadership in power semiconductors through technological prowess, capturing 20.8% of the power discretes and modules market.
Market Position
Infineon's Aurix MCU architecture is becoming the standard for software development at many automotive OEMs.
Negative Factors
Demand Challenges
Near-term demand environment remains challenging due to tariffs, automotive slowdown, and elevated inventory levels.
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
$46.41B
Dividend Yield0.98%
Average Volume (3M)4.16M
Price to Earnings (P/E)60.0
Beta (1Y)1.90
Revenue Growth-6.01%
EPS Growth-69.47%
CountryDE
Employees57,397
SectorTechnology
Sector Strength86
IndustrySemiconductors
Share Statistics
EPS (TTM)0.34
Shares Outstanding1,305,921,100
10 Day Avg. Volume4,001,624
30 Day Avg. Volume4,161,120
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)1.98
Price to Sales (P/S)0.00
P/FCF Ratio17.70
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.50Price Target Upside13.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
Infineon Technologies AG Business Overview & Revenue Model
Company DescriptionInfineon 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 MoneyInfineon Technologies AG generates revenue primarily through the design, manufacturing, and sale of semiconductor products. The company's key revenue streams include the automotive sector, which benefits from the growing demand for automotive electronics and electric vehicles; the industrial power control sector, which focuses on energy efficiency and automation in industrial applications; and the power management and multimarket sector, which serves a broad range of industries with power semiconductors and sensors. Additionally, the digital security solutions sector provides security ICs for smart cards, mobile devices, and identification systems. Infineon maintains significant partnerships with automotive and industrial companies, enhancing its market presence and driving revenue growth. The company's strategic focus on innovation and its strong market position in key sectors contribute to its earnings.
Infineon Technologies AG Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q2-2025)
| % Change Since: 17.88%|
Next Earnings Date:Aug 05, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook for Infineon. While the company enjoys strong positions in automotive semiconductors and AI data centers, it faces challenges from macroeconomic uncertainties, including tariffs and currency fluctuations. The overall business showed resilience with strategic financial management and a focus on sustainability, but the potential tariff impact on demand and margins remains a concern.Q2-2025 Updates
Positive Updates
Record Revenue in Automotive Segment
Automotive achieved revenues of EUR 1.858 billion, reflecting healthy sequential growth of 6% and confirming improvement in inventory digestion by customers.
Strong Market Position in Automotive Semiconductors
Infineon continues to be the #1 global automotive semiconductor provider with a market share of 13.5% and has improved regional positions in Europe and the U.S.
Growth in AI Data Center Solutions
Infineon's power solutions for AI servers show continued strong growth momentum, scaling dynamically and contributing to projected revenues of EUR 600 million in AI for the fiscal year.
Successful Bond Issuance and Financial Management
A EUR 700 million bond issued with a 5-year tenure and a coupon below 3%, alongside strategic financial management to maintain gross leverage at 1.5x.
Sustainability Milestones
The Science Based Targets initiative approved Infineon's science-based target for Scope 3 emissions, strengthening its role in sustainability.
Negative Updates
Impact of Tariff and Currency Challenges
Recent U.S. import tariffs and a weaker U.S. dollar are likely to create headwinds, leading to a cautious downward adjustment of the fiscal year outlook.
Depressed Margin Levels in Green Industrial Power
GIP recorded a segment result margin of only 10% due to annual price declines offsetting volume increases and ongoing underutilization charges.
Inventory and Demand Uncertainty
High inventory levels persist across the market, with potential tariff-related demand risks creating uncertainty for the second half of the fiscal year.
Company Guidance
During Infineon's 2025 Fiscal Second Quarter conference call, the company reported revenues of EUR 3.591 billion, a 5% increase from the prior quarter, and a segment result of EUR 601 million with a margin of 16.7%. The automotive division led with EUR 1.858 billion in revenues, marking a 6% sequential growth. Infineon maintained its position as the leading global automotive semiconductor provider with a 13.5% market share. The company highlighted its significant achievements in microcontrollers and battery management systems while announcing the strategic acquisition of Marvell's automotive Ethernet business for USD 2.5 billion. Despite potential headwinds from tariffs and currency fluctuations, Infineon expects modest revenue growth of around 3% in the third quarter, predicting a segment result margin in the mid-teens percentage level. The company plans to reduce investments to EUR 2.3 billion and targets a free cash flow of EUR 900 billion for the fiscal year.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 | TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.63B | 14.96B | 16.31B | 14.22B | 11.06B | 8.57B |
| Gross Profit | 5.80B | 6.07B | 7.41B | 6.13B | 4.26B | 2.78B |
| EBITDA | 3.64B | 4.18B | 5.81B | 4.51B | 3.01B | 1.87B |
| Net Income | 798.00M | 1.30B | 3.14B | 2.18B | 1.17B | 368.00M |
Balance Sheet | ||||||
| Total Assets | 28.94B | 28.64B | 28.44B | 26.91B | 23.33B | 22.00B |
| Cash, Cash Equivalents and Short-Term Investments | 1.69B | 2.20B | 3.59B | 3.72B | 3.92B | 3.23B |
| Total Debt | 5.89B | 5.17B | 5.11B | 6.05B | 6.92B | 7.33B |
| Total Liabilities | 11.83B | 11.42B | 11.39B | 11.97B | 11.93B | 11.78B |
| Stockholders Equity | 17.11B | 17.22B | 17.04B | 14.94B | 11.40B | 10.22B |
Cash Flow | ||||||
| Free Cash Flow | 736.00M | 61.00M | 966.00M | 1.67B | 1.57B | 712.00M |
| Operating Cash Flow | 3.36B | 2.78B | 3.96B | 3.98B | 3.06B | 1.81B |
| Investing Cash Flow | -2.31B | -2.17B | -2.26B | -2.44B | -2.28B | -7.17B |
| Financing Cash Flow | -1.62B | -615.00M | -1.30B | -1.87B | -885.00M | 6.27B |
Infineon Technologies AG Technical Analysis
Positive
35.66
Price Trends
33.12
Positive
33.38
Positive
32.16
Positive
Market Momentum
0.44
Positive
57.60
Neutral
67.18
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 35.66 is above the 20-day moving average (MA) of 35.28, above the 50-day MA of 33.12, and above the 200-day MA of 32.16, indicating a bullish trend. The MACD of 0.44 indicates Positive momentum. The RSI at 57.60 is Neutral, neither overbought nor oversold. The STOCH value of 67.18 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $46.41B | 60.00 | 7.74% | 0.98% | -6.01% | -69.47% | |
63 Neutral | $33.22B | 5.99 | -11.76% | 1.91% | 5.54% | -19.87% | |
| €1.78B | 17.45 | 12.25% | 0.95% | ― | ― | ||
| €1.52B | 12.38 | 23.28% | 1.13% | ― | ― | ||
| €599.63M | 229.45 | -14.35% | 0.70% | ― | ― | ||
| €1.25B | 31.38 | 2.02% | 0.48% | ― | ― | ||
| €880.08M | 15.48 | 21.21% | 0.65% | ― | ― |
* Technology Sector Average
Performance Comparison
DE:IFX
Infineon Technologies AG
35.66
1.61
4.72%
GB:0NP9
AIXTRON
15.57
-2.21
-12.43%
GB:0N9K
ELMOS Semiconductor
88.60
15.73
21.59%
GB:0G0X
First Sensor
57.80
-0.98
-1.67%
GB:0R8P
Siltronic
41.52
-30.92
-42.68%
GB:0Q3C
Suss Microtec
45.86
-16.15
-26.04%
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.