Infineon Technologies AG (IFNNF) AI Stock Analysis

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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.

Software Development

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 Uncertainties

The FY25 outlook has been revised downward due to tariff uncertainties, impacting near-term performance.

Infineon Technologies AG (IFNNF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$53.33B

Dividend Yield0.96%

Average Volume (3M)2.41K

Price to Earnings (P/E)63.4

Beta (1Y)1.36

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees57,397

SectorTechnology

Sector Strength84

IndustrySemiconductors

Share Statistics

EPS (TTM)0.39

Shares Outstanding1,305,921,100

10 Day Avg. Volume5,012

30 Day Avg. Volume2,409

Financial Highlights & Ratios

PEG Ratio-1.30

Price to Book (P/B)2.54

Price to Sales (P/S)0.00

P/FCF Ratio58.95

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$45.33

Price Target Upside8.78% 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 Money

Infineon Technologies AG Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q2-2025)

% Change Since: 24.72%|

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

The company demonstrates strong gross and EBIT margins, indicating effective cost management. However, there is a decline in revenue, and cash flow growth is uneven, which presents potential areas for improvement.

Income Statement

Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Breakdown
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
	EBIT
1.63B	2.19B	3.95B	2.85B	1.47B	581.00M
	EBITDA
3.64B	4.18B	5.81B	4.51B	3.01B	1.87B
	Net Income Common Stockholders
798.00M	1.30B	3.14B	2.18B	1.17B	368.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.69B	2.20B	3.59B	3.72B	3.92B	3.23B
	Total Assets
28.94B	28.64B	28.44B	26.91B	23.33B	22.00B
	Total Debt
5.89B	5.17B	5.11B	6.05B	6.92B	7.33B
	Net Debt
4.67B	3.36B	3.29B	4.61B	5.17B	5.48B
	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 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IFNNF		$53.33B	63.43	7.74%	0.96%	―	―
Sector *	62 Neutral	$11.80B	10.31	-7.45%	2.91%	7.43%	-7.78%
0NP9		€1.42B	14.16	12.25%	1.19%	―	―
0N9K		€1.27B	10.34	23.28%	1.35%	―	―
0G0X		€597.57M	229.45	-14.35%	0.81%	―	―
0R8P		€1.11B	27.91	2.02%	0.54%	―	―
0Q3C		€749.71M	13.03	21.21%	0.52%	―	―

* Technology Sector Average

Performance Comparison

IFNNF

Infineon Technologies AG

41.67

1.71

4.28%

GB:0NP9

AIXTRON

12.63

-9.57

-43.11%

GB:0N9K

ELMOS Semiconductor

77.00

-9.80

-11.29%

GB:0G0X

First Sensor

57.80

-0.98

-1.67%

GB:0R8P

Siltronic

37.83

-37.29

-49.64%

GB:0Q3C

Suss Microtec

40.84

-20.31

-33.21%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.