Infineon Is in a Prime Position To Benefit From Expanding AI Power Semis Demand

Infineon is one of Europe’s largest broad-based chipmakers, with significant exposure to secular growth drivers in artificial intelligence and the automotive chip sector. Infineon should emerge as a leading supplier for electric vehicles, active safety systems, and infotainment systems used in cars. In AI, the shift to 800 volt architecture bodes well for demand for Infineon’s high end power semis. However, like most chipmakers, Infineon's business remains highly cyclical as demand rises and falls with the health of its various end markets.