Infineon (IFNNY) AI Stock Analysis

• Market Cap: $62.71B
• Dividend Yield: 0.86%
• Average Volume (3M): 18.15K
• Price to Earnings (P/E): 57.0
• Beta (1Y): 1.39
• Revenue Growth: 0.17%
• EPS Growth: -19.36%
• Country: US
• Employees: 57,397
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.39
• Shares Outstanding: 1,305,921,100
• 10 Day Avg. Volume: 44,784
• 30 Day Avg. Volume: 18,147
• PEG Ratio: -1.99
• Price to Book (P/B): 2.54
• Price to Sales (P/S): 2.96
• P/FCF Ratio: 38.60
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 3.36
• Enterprise Value/Gross Profit: 8.55
• Enterprise Value/Ebitda: 14.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: $54.00 ▲(33.93% Upside)

Infineon's overall stock score reflects strong financial performance and positive technical momentum, tempered by high valuation and cautious earnings outlook. The company's strategic focus on AI and semiconductor demand supports future growth, but profitability pressures and external risks remain concerns.

Positive Factors

Sustained Revenue Growth

A 17.1% TTM revenue growth rate signals durable demand across Infineon's core markets (automotive, industrial power, AI data centers). Sustained top-line momentum supports scale economics, continued R&D investment and capacity build-out, strengthening competitive positioning over months.

Strong Cash Generation

Very strong FCF growth and healthy cash conversion (operating cash flow to net income 0.56; FCF to net income 0.37) give Infineon durable financial flexibility to fund capex, fabs and M&A while limiting reliance on additional debt, supporting long-term operational investments.

Strategic M&A Strengthens Portfolio

The Marvell automotive Ethernet acquisition broadens Infineon's automotive connectivity stack and added tangible revenue, improving product breadth and cross-sell potential. This strategic M&A enhances structural competitiveness in vehicle networking and long-term revenue diversification.

Negative Factors

Margin Compression

Declining net margins to 6.9% indicate persistent profitability pressure, reducing retained earnings available for R&D and capex. Margin erosion makes returns more sensitive to cost shocks and slows improvement in capital efficiency over the coming months absent sustained pricing or mix improvements.

Weakened Return on Equity

ROE falling to 5.9% reflects reduced effectiveness in converting equity into profits. Persistently low ROE signals capital allocation or profitability challenges that can limit shareholder value creation and may require structural fixes in operations or portfolio mix to restore longer-term performance.

High Idle Costs & Underutilization

Around EUR 1bn of idle costs and capacity underutilization create a durable margin headwind, tying up cash and impairing returns. Combined with automotive inventory destocking, underutilization could persist, delaying margin recovery and increasing the payback period on recent fab and tooling investments.

Infineon 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 through the sale of its semiconductor products across various sectors. The company's key revenue streams include automotive semiconductors, which account for a significant portion of its sales, particularly as demand for electric vehicles and advanced driver-assistance systems grows. Additionally, Infineon earns revenue from industrial power control solutions, catering to sectors such as renewable energy, automation, and consumer electronics. The company also benefits from its digital security segment, which provides secure microcontrollers and chips for payment systems, identity management, and secure communications. Strategic partnerships with automotive manufacturers and technology companies further enhance Infineon's market position, leading to sustained revenue growth as these sectors continue to evolve and expand.

Infineon Financial Statement Overview

Summary

Infineon demonstrates solid financial performance with strong revenue growth and efficient cash flow management. However, profitability margins have faced pressure, and return on equity has decreased, indicating reduced profitability from equity investments.

Income Statement

Infineon's income statement shows a mixed performance. The TTM revenue growth rate is strong at 17.1%, indicating robust sales momentum. However, the gross profit margin has slightly decreased from previous years, and the net profit margin has also declined to 6.9% in the TTM period. Despite these challenges, the company maintains a solid EBIT margin of 10.8% and an EBITDA margin of 23.9%, reflecting operational efficiency.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.42 in the TTM period. The equity ratio stands at 56%, indicating a strong equity base. However, the return on equity has decreased to 5.9% in the TTM period, suggesting reduced profitability from equity investments.

Cash Flow

Infineon's cash flow statement is strong, with a significant free cash flow growth rate of 105.3% in the TTM period. The operating cash flow to net income ratio is healthy at 0.56, and the free cash flow to net income ratio is 0.37, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.66B	14.66B	14.96B	16.31B	14.22B	11.06B
Gross Profit	5.75B	5.75B	6.07B	7.41B	6.13B	4.26B
EBITDA	3.51B	3.51B	4.18B	5.83B	4.53B	2.99B
Net Income	1.01B	1.01B	1.30B	3.14B	2.18B	1.17B
Balance Sheet
Total Assets	30.47B	30.47B	28.64B	28.44B	26.91B	23.33B
Cash, Cash Equivalents and Short-Term Investments	2.10B	2.10B	2.20B	3.59B	3.72B	3.92B
Total Debt	7.22B	7.22B	5.17B	5.11B	6.05B	6.92B
Total Liabilities	13.42B	13.42B	11.42B	11.39B	11.97B	11.93B
Stockholders Equity	17.05B	17.05B	17.22B	17.04B	14.94B	11.40B
Cash Flow
Free Cash Flow	1.12B	1.12B	61.00M	966.00M	1.67B	1.57B
Operating Cash Flow	3.22B	3.22B	2.78B	3.96B	3.98B	3.06B
Investing Cash Flow	-4.57B	-4.57B	-2.17B	-2.26B	-2.44B	-2.28B
Financing Cash Flow	920.00M	920.00M	-615.00M	-1.30B	-1.87B	-885.00M

Infineon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IFNNY, the sentiment is Positive. The current price of 40.32 is below the 20-day moving average (MA) of 45.20, below the 50-day MA of 42.42, and above the 200-day MA of 39.59, indicating a bullish trend. The MACD of 1.93 indicates Negative momentum. The RSI at 64.64 is Neutral, neither overbought nor oversold. The STOCH value of 86.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IFNNY.

Infineon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MRVL	76 Outperform	$68.87B	28.44	18.04%	0.28%	44.95%	―
IFNNY	74 Outperform	$62.71B	57.05	5.98%	0.86%	0.17%	-19.36%
ON	73 Outperform	$24.38B	79.06	3.87%	―	-16.13%	-81.06%
NXPI	70 Neutral	$60.61B	29.57	21.19%	1.79%	-6.81%	-23.16%
MCHP	62 Neutral	$40.36B	-165.37	-2.85%	2.79%	-23.36%	-131.15%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	60 Neutral	$25.07B	49.02	3.00%	1.28%	-17.33%	-76.71%