Susquehanna raises Infineon stock rating, hikes target to EUR45

On Tuesday, Susquehanna analysts upgraded Infineon Technologies AG (IFX:GR) (OTC: OTC:IFNNY) stock rating from Neutral to Positive, significantly increasing the price target from EUR32.00 to EUR45.00. According to InvestingPro data, the company, currently valued at $45.11 billion, maintains a GOOD financial health score, with liquid assets exceeding short-term obligations. The upgrade is based on the company’s expanding opportunities in artificial intelligence (AI) power, including power supply units, 48V bus converters, and on-GPU/XPU power.

Infineon’s leading position in wide-bandgap semiconductors, particularly silicon carbide (SiC) and gallium nitride (GaN), is expected to drive wins in new architectures for both the GPU and ASIC markets. The analysts noted the company’s potential to capitalize on these new AI power sockets, providing ample growth opportunities in the second half of 2025.

The normalization of Infineon’s channel and customer inventory levels for the Automotive and Industrial end markets is also a contributing factor to the positive outlook. The analyst’s commentary suggests that while there may be modest downside risks for the Auto and Industrial sectors in the coming quarters, the new AI power opportunities are seen as significant greenfield opportunities for Infineon.

Susquehanna pointed out that the upgrade should not be interpreted as a forecast for the upcoming quarterly results. Instead, it reflects the long-term growth potential stemming from Infineon’s strategic positioning and the anticipated demand in the AI power sector.

Infineon Technologies AG is poised to benefit from the growth in the second half of 2025, as its broad-based businesses are expected to expand once again. The company’s focus on AI power solutions and its leading position in the semiconductor industry form the core rationale behind Susquehanna’s upgraded rating and increased price target. InvestingPro analysis indicates the stock is currently undervalued, with analysts maintaining a strong buy consensus. For deeper insights into Infineon’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, TD Cowen has reiterated a Buy rating on Infineon Technologies AG, emphasizing the company’s strong positioning in the semiconductor sector and its potential for long-term growth. This assessment was part of the firm’s Best Ideas 2025 note, highlighting Infineon’s conservative financial estimates and its strong financial health. The firm also recognized Infineon’s significant role in growth areas such as electric vehicles, advanced driver-assistance systems, and artificial intelligence power management.

Infineon’s comprehensive system offering, including analog integrated circuits, microcontrollers, and power semiconductors, positions it as a top long-term investment. The company’s early adoption of 300mm wafer technology and a fab-lite model contributes to its advantageous cost structure, aligning it with multiple long-term growth trends. These trends are present in sectors with stable revenue streams, such as electric vehicles, charging infrastructure, and renewable energy.

In other recent developments, Infineon has been the focus of several analyst firms, including Berenberg and CFRA, both of which maintained a Buy rating but adjusted their price targets. Goldman Sachs held steady with a Buy rating and a price target of €43.50. Infineon’s earnings per share forecasts were revised for FY 24 and FY 25, with a new projection introduced for FY 26. Notably, the company’s AI power business is reportedly exceeding expectations, with sales anticipated to double in FY 25.

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