Company Reports

Infineon Technologies reported fiscal third-quarter revenue of EUR 4.17 billion, up 13% year over year and ahead of guidance of $4.10 billion. Infineon expects September-quarter revenue to be EUR 4.7 billion, which would be up 19% year over year and ahead of FactSet consensus estimates.

Infineon Technologies reported fiscal second-quarter revenue of EUR 3.81 billion, up 6% year over year and just above the midpoint of guidance. Infineon expects June-quarter revenue of EUR 4.1 billion, which would be up 11% year over year and modestly ahead of FactSet consensus estimates.

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

Infineon Technologies reported fiscal first-quarter revenue of EUR 3.66 billion, down 7% sequentially but up 7% year over year and ahead of guidance. Infineon expects March-quarter revenue to be EUR 3.8 billion, up 6% year over year and 4% sequentially but slightly below FactSet consensus estimates.

Infineon reported fiscal fourth-quarter revenue of EUR 3.94 billion, up 6% sequentially, up 1% year over year, and just ahead of guidance. For fiscal 2026, Infineon expects mid-single-digit annual revenue growth but lifted its AI revenue forecast to EUR 1.5 billion from EUR 1.0 billion.

Infineon reported fiscal third-quarter revenue of EUR 3.70 billion, flat year over year, up 3% sequentially, and in line with guidance. Revenue for the September quarter is expected to be EUR 3.9 billion, flattish year over year, up 5% sequentially, and in line with FactSet consensus estimates.

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

Infineon Technologies reported fiscal second-quarter revenue of 3.59 billion, in line with guidance. Revenue in the June and September quarters should be EUR 3.7 billion and EUR 4.0 billion, respectively, but with uncertainty due to tariffs.

Infineon Technologies has agreed to acquire Marvell Technology's automotive ethernet business for EUR 2.3 billion ($2.5 billion) in an all-cash deal. Infineon will take on debt to fund the purchase. The business is expected to earn $225 million-$250 million in revenue in 2025.

Narrow-moat Infineon Technologies reported strong fiscal first-quarter results, and we're encouraged with the company's forecast for the March quarter and for the remainder of fiscal 2025 (ending September 2025), as Infineon's exposure within Chinese electric vehicles and artificial intelligence server racks appears to be driving company-specific outperformance ahead of its peers. We maintain our EUR 43 fair value estimate and continue to view shares as undervalued. Infineon remains a top pick of ours within the semiconductor industry.

Narrow-moat Infineon Technologies reported decent fiscal fourth-quarter earnings but provided investors with a gloomy outlook for the December quarter and a disappointing outlook for the fiscal year ahead. The forecast isn’t too much worse than those provided by peers in recent weeks, but it is yet another data point to suggest that no immediate recovery in demand is on the horizon. We cut our fair value estimate to EUR 43 from EUR 50. We admit that our cut would have been worse if not for the company’s rosy assumptions on power semis going into artificial intelligence servers. Shares still appear undervalued, even as the stock rose 3% on the earnings print, presumably out of AI optimism or because results weren’t as bad as feared by others.

Infineon is a leading broad-based European chipmaker, with significant exposure to secular growth drivers in the automotive chip sector. Infineon should emerge as a leading supplier for electric vehicles and active safety systems used in cars, with increasing exposure to car "infotainment" systems. However, like most chipmakers, Infineon's business remains highly cyclical as demand rises and falls with the health of its various end markets.

Narrow-moat Infineon Technologies reported decent fiscal third-quarter results amid an industrywide cyclical downturn, and we’re pleased with the company’s forecast for the September quarter as the company thinks that the worst of the downturn is behind it. We maintain our EUR 50 fair value estimate, and we still view Infineon’s shares as providing one of the more attractive margins of safety for investors in the semis space.

Narrow-moat Infineon Technologies reported decent fiscal second-quarter results amid a tough demand environment while providing investors with a soft forecast for the third quarter and reducing its guidance for fiscal 2024 (ending September). On the bright side, Infineon believes that June will be the bottom of an ongoing cyclical downturn in power semiconductors, which is commentary echoed by several peers in recent weeks. Further, Infineon disclosed its strong momentum in microcontroller revenue, which we believe is more insulated from the rise of Chinese chip development than its low- to mid-range power semiconductor business is. We believe these two factors are why the stock rose nearly 13% after the earnings report on May 7. We maintain our EUR 50/$54 fair value estimate and still view Infineon as one of our top picks in the semiconductor space, as we believe the long-term risks around its auto business and Chinese competition are more than overdone.

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.

Narrow-moat Infineon Technologies is one of our top picks in the technology sector, as our fair value estimate of EUR 50 per share offers an attractive margin of safety for long-term, patient investors, in our opinion. We continue to like the long-term secular tailwinds in the automotive end market, as Infineon should profit from increased chip content per car, especially in electric vehicles. We’re also fond of Infineon’s green industrial power business and its exposure to renewable energy. Infineon has expanded its gross and operating margins in recent years, and we foresee the company maintaining these margins in the long run.

Infineon is a leading broad-based European chipmaker, with significant exposure to secular growth drivers in the industrial and automotive chip sectors. Infineon should emerge as a leading supplier for electric vehicles and active safety systems used in cars, with increasing exposure to car "infotainment" systems. However, like most chipmakers, Infineon's business remains highly cyclical as demand rises and falls with the health of its various end markets.

Infineon reported solid fiscal fourth-quarter results and provided investors with an upbeat forecast in fiscal 2024 (ending Sept. 24), despite some near-term weakness in certain end markets. Importantly, the secular tailwind of rising chip content per car (especially in electric vehicles) appears to be full steam ahead, as management expects low-double digit revenue growth next year even if global light vehicle unit sales are flattish in 2024. We raise our fair value estimate to EUR 50 from EUR 47 as we adjust our near-term and long-term profitability assumptions. Shares still appear undervalued to us, and we remain fond of Infineon's opportunities within the electrification of vehicles and its exposure to EVs.

Narrow-moat Infineon Technologies reported solid fiscal third-quarter results but provided investors with a more modest outlook for the September quarter. Shares are down 10%, perhaps out of concern for the company’s announcement for massive manufacturing expansion to its silicon-carbide, or SiC, power semis business. We’re net neutral on the announcement. We view it as a positive sign for long-term SiC demand and Infineon’s product roadmap, but is the exact type of expansion that adds risk to the business if it were to encounter factory underutilization or a SiC price war. We maintain our EUR 47 fair value estimate and view the selloff as a potential buying opportunity for investors.

Infineon reported strong results for the March quarter and provided investors with an upbeat forecast for the June quarter and fiscal 2023 (ending in September), as the company is still prospering from robust demand for power semiconductors used in electric vehicles and “green” industrial products. Pricing remains strong, and we remain impressed with Infineon’s ongoing gross margin expansion, which we think the firm can maintain (cycles permitting) in the long term. We are raising our fair value estimate for narrow-moat Infineon to EUR 47 from EUR 43 (and to $52 from $48 for U.S. shares), and continue to view the firm as undervalued.