Key Takeaways:
Infineon Technologies AG forecast fourth-quarter revenue of about €4.7 billion, beating the €4.6 billion average analyst estimate, as AI data-center chip demand accelerates.
JPMorgan's Sandeep Deshpande reaffirmed an "Overweight" rating with a €96 price target ahead of the report, arguing that inventory destocking among industrial customers is nearing completion and institutional selling of semiconductor positions has largely run its course.
The Munich-based chipmaker said revenue for the fiscal year ending September would reach roughly €16.3 billion, according to a statement Wednesday. Management reaffirmed its target of €1.5 billion in revenue from power semiconductors for AI servers in fiscal 2026, as data-center demand and price increases lift the power-management business. The Q4 forecast implies continued growth from the third quarter, when analysts expected earnings per share of €0.448 on revenue of roughly €4.13 billion, up 11.6 percent from a year earlier.
Shares rose about 10 percent in the week before the report, leading the DAX, as strong results from US rival ON Semiconductor triggered a sector-wide rally in power chips. ON Semiconductor reported second-quarter revenue of $1.6 billion, up 8.8 percent year over year, with adjusted earnings per share of $0.74 beating the $0.71 consensus. The stock still trades roughly 29 percent below its 52-week high of €89.67, and the report now tests whether the AI-driven optimism can close that gap.
Operationally, Infineon has strengthened its hand. The acquisition of ams OSRAM's non-optical sensor portfolio closed in early July, broadening the analog and mixed-signal business, while a US International Trade Commission ruling confirmed an import ban on gallium nitride power semiconductors from competitor Innoscience after finding patent infringement. GaN is becoming increasingly critical for AI power supply, making the legal win a competitive advantage in a high-margin segment.
The guidance raise shows management expects AI demand to accelerate through the fiscal year. The next event is the analyst call Wednesday, where investors will seek specifics on order intake and capacity utilization behind the €1.5 billion AI revenue target.
This article is for informational purposes only and does not constitute investment advice.
