Infineon Earnings: Maintain EUR 50 Fair Value Estimate as We Look Toward Its Long-Term Opportunities

Narrow-moat Infineon Technologies reported fiscal first-quarter results and provided investors with forecasts for the March quarter and all of fiscal 2024 (ending September) that were modestly below our expectations, as the company is also feeling the repercussions of chip inventory corrections at many of its key customers in the automotive and industrial end markets. Still, we’re encouraged that Infineon still foresees revenue growth in automotive, its largest end market. We believe that shares have more than priced in this near-term cyclical downturn. We maintain our EUR 50 fair value estimate and still view Infineon as undervalued and one of our top picks in the technology sector.