Infineon Shares Jump 5% After Bernstein Upgrade
Bernstein raised its price target on Infineon Technologies AG to €102 from €74, reiterated an “outperform” rating and increased the target price‑earnings multiple to 30× from 25×, prompting a 5% rise in the stock on Monday.
Infineon’s exposure to power semiconductors exceeds 50% of total revenue. The company commands roughly 15% of the power‑discrete market, over 40% of AI‑power semiconductors, and 24% of the automotive power segment. When AI exposure is measured by combined GPU and CPU server revenue, it accounts for 13% of total revenue in 2026 and is projected to climb to 22% by 2028.
Bernstein now forecasts adjusted diluted earnings per share of €1.74 for FY2026 and €2.94 for FY2027, up from prior estimates of €1.72 and €2.63 respectively, implying a 42% compound annual growth rate (CAGR) from FY2025 through FY2028. Revenue estimates have been lifted by 3.4% for FY27 and 7.1% for FY28, while FY26 sees only a modest increase due to limited impact from price hikes in the current fiscal year.
The analysts attribute most of the upside to higher power pricing, which benefits Infineon’s automotive, green‑industrial power, and power‑and‑sensor‑systems segments. CPU data‑center revenue is expected to grow at a 30% CAGR over the next three years, reaching €1.1 billion in FY2028, with the company already generating €500 million of revenue this year from CPU data‑center power.
Segment margins are projected to rise from 17.5% in FY25 to just under 30% in FY28, driven by an improving product mix as AI contributions increase and capacity shifts from low‑end automotive IGBTs to AI power devices. Capacity-wise, Infineon will have 850 kW per month (WpM) in 2025—more than double the second‑largest player, Silan—and is expected to expand capacity at a 10% CAGR over the next two years, surpassing 1 million WpM in 2027, while overall power‑semiconductor capacity grows at 6%.
The company’s Smart Power Fab in Dresden is slated to open on 2 July 2026, and Infineon has accelerated €500 million of capital expenditure, bringing total FY26 investment to €2.7 billion.
Bernstein highlighted downside risks including slower automotive demand or EV penetration, a delayed recovery, price erosion and oversupply of SiC solutions, broader semiconductor demand weakness, and potential compression of valuation multiples.