Infineon (IFNNY) AI Stock Analysis

Compare

608 Followers

Top Page

Infineon

(OTC:IFNNY)

Rating:66Neutral

Price Target:

$42.00

▲(11.49% Upside)

Infineon's overall stock score reflects a stable financial position with consistent revenue growth and a strong balance sheet. However, the high P/E ratio suggests overvaluation, and technical indicators point to bearish momentum. The earnings call provided positive insights into future growth, particularly in AI and automotive sectors, despite ongoing currency and market challenges.

Infineon (IFNNY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$48.13B

Dividend Yield0.99%

Average Volume (3M)15.06K

Price to Earnings (P/E)65.4

Beta (1Y)1.25

Revenue Growth-2.94%

EPS Growth-67.68%

CountryUS

Employees57,397

SectorTechnology

Sector Strength82

IndustrySemiconductors

Share Statistics

EPS (TTM)0.43

Shares Outstanding1,305,921,100

10 Day Avg. Volume8,450

30 Day Avg. Volume15,064

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.26

Enterprise Value/Revenue4.14

Enterprise Value/Gross Profit10.41

Enterprise Value/Ebitda17.15

Forecast

1Y Price Target

$42.00

Price Target Upside11.49% Upside

Rating ConsensusHold

Number of Analyst Covering0

Infineon 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 generates revenue primarily through the sale of semiconductor products across several key segments. The automotive sector is a major contributor, with demand for chips that facilitate electric vehicle technologies and advanced driver-assistance systems. The industrial power control segment focuses on energy-efficient solutions, which are increasingly in demand as industries seek to reduce energy consumption. Additionally, the company earns revenue from its security technologies, which include solutions for secure payment systems and identity management. Infineon also benefits from strategic partnerships with leading automotive and technology companies, which help expand its market reach and enhance product offerings. The growing trend towards electrification and automation in various industries further fuels the company's growth, as it positions itself to capitalize on these market shifts.

Infineon Key Performance Indicators (KPIs)

Any

Revenue by Segment

Revenue by Segment
Breaks down sales across various business units, indicating which segments are performing well and where the company might focus its strategic efforts for expansion.

Chart InsightsInfineon's automotive segment shows robust growth, driven by its leading market position and strategic acquisitions, such as Marvell's automotive Ethernet business. However, the Green Industrial Power segment faces challenges with pricing pressures and underutilization. Despite strong AI data center growth, geopolitical and tariff uncertainties pose risks, potentially impacting revenue. The company's revised guidance reflects these challenges, anticipating a slight revenue decline for fiscal 2025. Investors should note the mixed sentiment, with strong automotive performance counterbalanced by external headwinds and segment-specific struggles.

Data provided by:

Main Street Data

Infineon Earnings Call Summary

Earnings Call Date:Aug 05, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Nov 13, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted Infineon's ability to achieve sequential revenue growth and improved margins despite currency headwinds and market uncertainties. The AI data center segment shows promising growth potential, while automotive market conditions remain a concern.

Q3-2025 Updates

Positive Updates

Sequential Revenue Growth

Infineon's June quarter marked the second consecutive quarter with sequential growth at constant currency, with revenues increasing by around 3% to EUR 3.704 billion.

Strong Performance in Green Industrial Power (GIP) and Power & Sensor Systems (PSS)

GIP revenues increased by 9% quarter-over-quarter to EUR 431 million, while PSS recorded revenues of EUR 1.053 billion, an 8% increase quarter-over-quarter.

AI Data Center Expansion

Infineon projects AI-related revenues to reach around EUR 600 million this fiscal year, rising to around EUR 1 billion next year, with significant collaborations such as the one with NVIDIA.

Improved Gross Margin

The adjusted gross margin improved to 43% from 40.9% in the previous quarter, driven by lower idle costs and benefits from the Step Up program.

Negative Updates

Currency Headwinds

The company faced a substantial negative currency effect due to an unfavorable U.S. dollar-euro exchange rate, impacting revenue and order backlog.

Automotive Market Uncertainty

Concerns over potential tariff-led weakness in the U.S. and negative news flow in China could affect automotive demand, with some customers potentially lowering inventory targets further.

Idle Costs and Inventory Management

Idle charges remain a significant burden on margins, with plans to manage inventory reach to around 150-160 days, which is higher than historical norms.

Company Guidance

During Infineon's fiscal third quarter earnings call for 2025, the company provided a detailed guidance and outlook. CEO Jochen Hanebeck highlighted that the semiconductor market is emerging from a prolonged downturn, with Infineon experiencing sequential revenue growth of over 9% at constant currency. For the September quarter, they anticipate revenues to grow again, marking the first year-over-year growth in two years, despite material adverse currency impacts. The company recorded third-quarter revenues of EUR 3.704 billion, a sequential increase of 3%, and a segment result margin of 18%. Automotive revenues slightly increased to EUR 1.870 billion with a segment margin of 19.8%. In Green Industrial Power, revenues rose 9% quarter-over-quarter to EUR 431 million, with a segment result margin of 14.2%. Power & Sensor Systems saw an 8% revenue increase to EUR 1.053 billion, achieving an 18.8% segment margin. Connected Secure Systems revenues decreased by 2% to EUR 349 million, maintaining a segment margin of 11.2%. The company plans for a September quarter revenue of around EUR 3.9 billion, with a high teens percentage segment result margin, anticipating an annual revenue of EUR 14.6 billion for the fiscal year. Despite geopolitical and macroeconomic headwinds, Infineon is well-positioned in high-growth markets like AI, energy infrastructure, and automotive, supported by their comprehensive portfolio and ongoing cost-saving initiatives.

Infineon Financial Statement Overview

Summary

Infineon demonstrates a stable financial position with consistent revenue growth and a strong balance sheet. However, recent declines in profitability margins and free cash flow generation pose potential challenges. The company needs to focus on improving operational efficiencies and cash flow management to sustain long-term growth.

Income Statement

Positive

Infineon has shown a stable revenue growth trajectory with a slight increase in the TTM period. However, the gross profit margin has slightly decreased over the years, and the net profit margin has seen a decline in the TTM compared to the previous year. The EBIT and EBITDA margins have also decreased, indicating some pressure on operational efficiency.

Balance Sheet

Positive

The company's debt-to-equity ratio has improved over the years, indicating better leverage management. Return on equity has decreased in the TTM period, reflecting a decline in profitability. The equity ratio remains strong, suggesting a solid capital structure.

Cash Flow

Positive

Infineon's free cash flow has decreased significantly in the TTM period, impacting the free cash flow growth rate negatively. The operating cash flow to net income ratio remains stable, but the free cash flow to net income ratio has declined, indicating reduced cash generation efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.64B	14.96B	16.31B	14.22B	11.06B	8.57B
Gross Profit	5.83B	6.07B	7.41B	6.13B	4.26B	2.78B
EBITDA	3.54B	4.18B	5.83B	4.53B	2.99B	1.81B
Net Income	700.00M	1.30B	3.14B	2.18B	1.17B	368.00M
Balance Sheet
Total Assets	28.06B	28.64B	28.44B	26.91B	23.33B	22.00B
Cash, Cash Equivalents and Short-Term Investments	1.54B	2.20B	3.59B	3.72B	3.92B	3.23B
Total Debt	5.37B	5.17B	5.11B	6.05B	6.92B	7.33B
Total Liabilities	11.35B	11.42B	11.39B	11.97B	11.93B	11.78B
Stockholders Equity	16.71B	17.22B	17.04B	14.94B	11.40B	10.22B
Cash Flow
Free Cash Flow	547.00M	61.00M	966.00M	1.67B	1.57B	712.00M
Operating Cash Flow	2.91B	2.78B	3.96B	3.98B	3.06B	1.81B
Investing Cash Flow	-1.94B	-2.17B	-2.26B	-2.44B	-2.28B	-7.17B
Financing Cash Flow	-1.43B	-615.00M	-1.30B	-1.87B	-885.00M	6.27B

Infineon Technical Analysis

Technical Analysis Sentiment

Negative

Last Price37.67

Price Trends

50DMA

41.79

Negative

100DMA

39.51

Negative

200DMA

37.08

Positive

Market Momentum

MACD

-1.13

Positive

RSI

36.65

Neutral

STOCH

10.61

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IFNNY, the sentiment is Negative. The current price of 37.67 is below the 20-day moving average (MA) of 41.12, below the 50-day MA of 41.79, and above the 200-day MA of 37.08, indicating a neutral trend. The MACD of -1.13 indicates Positive momentum. The RSI at 36.65 is Neutral, neither overbought nor oversold. The STOCH value of 10.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IFNNY.

Infineon Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXPI	76 Outperform	$57.16B	26.79	23.11%	1.80%	-7.53%	-21.88%
ON	69 Neutral	$20.08B	45.82	5.72%	―	-17.93%	-75.83%
STM	67 Neutral	$23.97B	39.16	3.72%	1.14%	-22.97%	-78.58%
IFNNY	66 Neutral	$48.13B	65.44	6.85%	0.99%	-2.94%	-67.68%
Sector *	61 Neutral	$35.55B	8.91	-10.55%	1.87%	8.47%	-8.26%
MRVL	58 Neutral	$54.60B	―	-0.75%	0.36%	37.05%	89.40%
MCHP	50 Neutral	$35.58B	84.25	-2.24%	2.79%	-35.70%	-113.08%

* Technology Sector Average

Performance Comparison

IFNNY

Infineon

37.06

4.98

15.52%

MRVL

Marvell

63.33

-5.37

-7.82%

MCHP

Microchip

65.30

-7.96

-10.87%

NXPI

NXP Semiconductors

225.50

-0.87

-0.38%

ON Semiconductor

49.10

-20.29

-29.24%

STM

STMicroelectronics

26.86

-1.68

-5.89%

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.Date of analysis: Sep 03, 2025