Infineon rises with JPMorgan 'promotion' and positive outlook

(Il Sole 24 Ore Radiocor) - On a lacklustre day for European technology stocks, Infineon Technologies trades against the trend on the Frankfurt Stock Exchange (DAX 30 ). Boosting the momentum is the positive assessment by analysts at JPMorgan that Infineon could be one of the biggest beneficiaries of the growing demand for AI power, which is why the company's rating has been revised upwards from 'neutral' to 'overweight', with the target price upgraded from EUR 40 to EUR 48.

Infineon has forecast €1.5 billion in sales related to AI power in 2026, with a further increase to €2.5 billion 2027. According to JPMorgan, the German group 'is constrained by supply in that market and is anticipating around EUR 500 million in 2026 investments to convert Igbt (insulated gate bipolar transistor, a semiconductor electronic component used primarily as a high-efficiency power switch, ed.) capacity into state-of-the-art sub-100V Mosfet (Metal-Oxide-Semiconductor Field-Effect Transistor) production for AI', accelerating production. By the way, again according to JPMorgan, Infineon, which also produces chips and technologies for the automotive industry, will also benefit from the recovery of the four-wheeler industry, seen so far in 2026: 'Infineon is a long-established company and is unlikely to be disrupted by new competitors. The worst of the decline in car demand may be behind us,' say the analysts. In fact, according to experts, the market is now predicting only 2% growth in Infineon's automotive division for 2026-2027, down from around 10% a year ago, but the automotive glut should be cleared by the second half of 2026, with revenues from software-defined vehicles expected to accelerate from the second half of the year, which could have a positive impact on semiconductor groups.