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1. Company Snapshot

1.a. Company Description

Infineon 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.

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1.b. Last Insights on IFX

Infineon Technologies' recent performance has been positively driven by the company's upbeat outlook on AI chip demand. The German chipmaker raised its 2026 sales target for the AI power supply segment to around €1.5 billion, citing strong demand. This growth is expected to offset weak prospects in its automotive market. Additionally, Infineon's CEO noted a noticeable increase in demand for power supply solutions for AI data centers. The company forecasts moderate revenue growth in the fiscal year ending September.

1.c. Company Highlights

2. Infineon's FY2025 Results: Stability Amidst Currency Headwinds

Infineon Technologies AG reported a revenue of EUR 14.662 billion for the 2025 fiscal year, a 2% decrease from the previous year, primarily due to the weaker U.S. dollar. At constant currencies, revenue would have remained almost stable. The segment result margin reached 17.5%, within the forecasted high teens percent range. The company's earnings per share (EPS) came in at EUR 0.3451, below analyst estimates of EUR 0.4404. Free cash flow was minus EUR 1.051 billion, while the adjusted free cash flow was plus EUR 1.803 billion, approximately 12.3% of revenue.

Publication Date: Nov -14

📋 Highlights
  • 2025 Revenue Decline:: EUR 14.662 billion, a 2% annual drop, but stable at constant currencies.
  • Segment Result Margin:: 17.5%, within the high-teens forecast range for 2025.
  • AI Data Center Growth:: Revenue to more than double to EUR 1.5 billion in 2026, targeting EUR 8–12 billion market by 2030.
  • Free Cash Flow:: Adjusted free cash flow of EUR 1.803 billion (12.3% of revenue) despite negative EUR 1.051 billion operational free cash flow.
  • Step Up Program Progress:: Achieved 50% of EUR 100+ million efficiency targets, with 3/4 focused on digitization and productivity.

Segment Performance and Outlook

Infineon's priorities remain focused on leveraging opportunities for profitable growth, making targeted investments in future technologies, and controlling expenditures. The company is well-positioned for a market upswing, with a strong presence in growth areas such as software-defined vehicles and AI data centers. In the fourth quarter, revenue increased to EUR 3.943 billion, a 6% rise from the previous quarter. The segment result margin reached 18.2%. For the 2026 fiscal year, Infineon expects a moderate revenue growth, with a forecast of around EUR 3.6 billion in revenue for the current first quarter.

Growth Prospects in AI Data Centers

Infineon raised its revenue forecast for the 2026 fiscal year to around EUR 1.5 billion from EUR 1 billion in the AI data center segment, representing more than doubling the revenues of the previous fiscal year. The company expects dynamic medium-term growth in this area, with an addressable market of EUR 8 billion to EUR 12 billion by the end of the decade. Infineon's power supply solutions for AI data centers are expected to more than double in revenue to around EUR 1.5 billion in the current fiscal year.

Valuation and Dividend

The company's valuation metrics indicate a P/E Ratio of 64.6, P/B Ratio of 2.71, and an EV/EBITDA of 13.92. Infineon proposes a stable dividend of EUR 0.35 per share to shareholders, representing a Dividend Yield of 1.01%. With analysts estimating next year's revenue growth at 6.7%, the current valuation appears to be pricing in moderate growth expectations.

Operational Efficiency and Cost Management

Infineon's capacity utilization is currently at around 80%, with idle costs expected to decrease to EUR 800 million from EUR 1 billion in the past fiscal year. The company's fitness program, Step Up, aims to improve competitiveness, with a target of high triple-digit million euros in improvements, and has already achieved 50% of this figure. The program is expected to drive efficiencies, productivity improvements, and digitization.

3. NewsRoom

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InnoScience has Announced the Company's Victory in Its Lawsuit with Infineon

Dec -04

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Marvell Drops $2.5 Billion Bombshell--Then Quietly Makes Its Boldest AI Move Yet

Dec -03

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U.S. International Trade Commission rules in favor of Infineon in one patent infringement case against Innoscience

Dec -03

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Marvell Technology, Inc. Reports Third Quarter of Fiscal Year 2026 Financial Results

Dec -02

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A Fresh Look at Infineon Technologies (XTRA:IFX) Valuation as Investor Interest Builds

Nov -29

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Infineon Technologies AG's (ETR:IFX) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?

Nov -29

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Intelligent Power Modules (IPM) Market Review 2020-2025 and Growth Forecast to 2030 - Wide-Bandgap Semiconductors Reshape IPM Market Trends as Mitsubishi Electric, Infineon Technologies, and Fuji Electric Lead

Nov -28

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Infineon and HTEC Showcase Humanoid Robotic Head at Infineon’s OktoberTech™ Silicon Valley 2025 Show

Nov -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.87%)

6. Segments

Automotive

Expected Growth: 3.5%

Infineon's Automotive segment growth of 3.5 is driven by increasing demand for electric vehicles, advanced driver-assistance systems (ADAS), and autonomous driving technologies. The company's focus on providing innovative semiconductor solutions, such as power modules and sensors, positions it well to capitalize on these trends and expand its market share in the automotive industry.

Power & Sensor Systems

Expected Growth: 4.2%

The Power & Sensor Systems segment of Infineon Technologies AG is driven by growth in electric vehicles, renewable energy, and industrial automation. Increasing demand for energy-efficient solutions, government regulations, and advancements in sensor technologies are key drivers. This segment's 4.2% growth is fueled by Infineon's expanding product portfolio and strategic acquisitions, enabling the company to capitalize on emerging trends.

Green Industrial Power

Expected Growth: 5.0%

The Green Industrial Power segment growth of 5.0% is driven by increasing demand for energy-efficient solutions, government regulations promoting sustainable practices, and Infineon's innovative product portfolio, including power semiconductors and modules for electric vehicles and renewable energy systems.

Connected Secure Systems

Expected Growth: 3.8%

The Connected Secure Systems segment of Infineon Technologies AG is driven by growing demand for secure and connected devices, increasing adoption of IoT, and rising need for cybersecurity solutions. Strong growth in automotive, industrial, and smart infrastructure applications also contribute to its 3.8% growth rate.

Other Operating Segments

Expected Growth: 2.5%

The 2.5% growth in Other Operating Segments of Infineon Technologies AG is driven by increased demand for industrial and automotive applications, particularly in power management and sensor technologies. This growth is also attributed to the company's strategic focus on expanding its product portfolio and improving operational efficiency.

7. Detailed Products

Power Systems

Infineon's Power Systems product line includes a range of power semiconductors, such as IGBTs, power MOSFETs, and thyristors, designed for high-power applications

Automotive Systems

Infineon's Automotive Systems segment offers a variety of products, including microcontrollers, sensors, and power management devices, for applications in vehicles

Industrial and Infrastructure

This segment provides products for industrial applications, such as motor control, industrial communication, and power supplies

Security and Smart Solutions

Infineon's Security and Smart Solutions segment offers products for secure identification, authentication, and data protection, as well as smart card and chip card solutions

Memory Products

Infineon's Memory Products segment includes a range of non-volatile memory products, such as NOR and NAND flash memory

Microcontrollers and Embedded Systems

Infineon's Microcontrollers and Embedded Systems segment provides a range of microcontrollers and embedded systems for various applications

Discrete Semiconductors

Infineon's Discrete Semiconductors segment offers a range of discrete semiconductors, such as diodes, transistors, and thyristors

Radar and Sensing Solutions

Infineon's Radar and Sensing Solutions segment provides products for radar and sensing applications, including automotive and industrial radar systems

8. Infineon Technologies AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Infineon Technologies AG operates in the semiconductor industry, where substitutes exist but are limited. While there are alternative technologies and products, they may not offer the same performance, quality, or compatibility as Infineon's products. The company has a strong reputation and brand recognition, which makes it difficult for substitutes to gain traction.

Bargaining Power Of Customers

Infineon Technologies AG has a diverse customer base across various industries, including automotive, industrial, and consumer electronics. While some large customers may have significant bargaining power, the company's broad product portfolio and strong technical support make it difficult for customers to negotiate significant discounts or concessions.

Bargaining Power Of Suppliers

Infineon Technologies AG relies on a network of suppliers for raw materials, equipment, and manufacturing services. While some suppliers may have significant bargaining power, the company has a strong procurement strategy and long-term partnerships with key suppliers, which mitigates the risk of supplier power.

Threat Of New Entrants

The semiconductor industry is highly competitive and requires significant investments in research and development, manufacturing capacity, and talent acquisition. New entrants face significant barriers to entry, including high capital expenditures, complex technology, and established relationships between existing players and customers.

Intensity Of Rivalry

The semiconductor industry is highly competitive, with many established players competing for market share. Infineon Technologies AG competes with companies like Texas Instruments, STMicroelectronics, and NXP Semiconductors, among others. The competition is intense, with companies investing heavily in research and development, marketing, and sales to gain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.08%
Debt Cost 4.28%
Equity Weight 76.92%
Equity Cost 11.90%
WACC 10.14%
Leverage 30.01%

11. Quality Control: Infineon Technologies AG passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 3.7/10

Value: 1.9

Growth: 5.8

Quality: 4.6

Yield: 1.2

Momentum: 5.5

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A-Score: 3.6/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

37.5$

Current Price

37.51$

Potential

-0.00%

Expected Cash-Flows