Infineon (IFNNY) AI Stock Analysis

• Market Cap: $56.34B
• Dividend Yield: 0.86%
• Average Volume (3M): 13.55K
• Price to Earnings (P/E): 51.1
• Beta (1Y): 1.41
• 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: 0
• 30 Day Avg. Volume: 13,549
• 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: 0.87
• 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: $48.00 ▲(19.05% 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

Strategic Acquisitions

Strategic acquisitions like Marvell's automotive Ethernet business bolster Infineon's product offerings, enhancing its competitive edge in automotive semiconductors and contributing positively to long-term profitability.

Investment in AI and Quantum Computing

Infineon's focus on AI and quantum computing positions it well for future growth, leveraging cutting-edge technology to meet increasing demand in these sectors, ensuring sustained market relevance.

Patent Protection

Infineon's successful patent protection strengthens its intellectual property portfolio, safeguarding competitive advantages in semiconductor technology and potentially limiting competitors' market access.

Negative Factors

Decline in Annual Revenue

A decline in annual revenue indicates potential challenges in maintaining growth momentum, possibly affecting long-term financial performance and market confidence.

High Idle Costs

High idle costs reflect inefficiencies in production capacity utilization, impacting profitability and highlighting the need for better operational management to sustain margins.

Challenging Automotive Market

Challenges in the automotive market, including inventory reductions, could hinder Infineon's growth in this key segment, necessitating strategic adjustments to maintain market share.

Infineon Business Overview & Revenue Model

Company Description

Infineon Technologies AG is a leading global semiconductor manufacturer headquartered in Germany, specializing in designing, developing, and supplying a wide range of semiconductor solutions. The company operates primarily in the automotive, industrial power control, and digital security sectors, providing products such as microcontrollers, sensors, power semiconductors, and security chips. Infineon's innovative technologies are integral to applications in electric vehicles, renewable energy, and Internet of Things (IoT) devices, making it a key player in the transition to a more sustainable and connected world.

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: Positive
• RSI: Neutral
• STOCH: Neutral

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 42.23, below the 50-day MA of 40.40, and above the 200-day MA of 38.93, indicating a bullish trend. The MACD of 0.68 indicates Positive momentum. The RSI at 59.53 is Neutral, neither overbought nor oversold. The STOCH value of 76.32 is Neutral, 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	$71.92B	30.70	18.04%	0.28%	44.95%	―
IFNNY	74 Outperform	$56.34B	51.10	5.98%	0.86%	0.17%	-19.36%
ON	73 Outperform	$22.68B	72.67	3.87%	―	-16.13%	-81.06%
NXPI	70 Neutral	$57.62B	27.75	21.19%	1.79%	-6.81%	-23.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	57 Neutral	$23.30B	45.82	3.00%	1.28%	-17.33%	-76.71%
MCHP	54 Neutral	$35.80B	-144.71	-2.85%	2.79%	-23.36%	-131.15%

Infineon Corporate Events

Infineon Technologies AG: Positive Outlook Amid Challenges

Infineon Technologies AG’s recent earnings call conveyed a generally positive sentiment, underscored by robust revenue growth and successful cost-saving measures. The company highlighted strategic acquisitions and advancements, although it acknowledged challenges such as currency impacts and market uncertainties. Despite concerns in the automotive sector, the outlook remains optimistic, fueled by growth in AI data centers and strategic initiatives.

Infineon Technologies AG Reports Strong Q3 2025 Results

Infineon Technologies AG is a leading global semiconductor company specializing in power systems and IoT solutions, driving advancements in decarbonization and digitalization across various industries. The company is listed on the Frankfurt Stock Exchange and the OTCQX International market in the USA.