Infineon Technologies AG Stock on 1 December 2025: Price, AI Power Ambitions, Analyst Targets and 2026 Outlook

Updated: 1 December 2025

Germany’s Infineon Technologies AG (ETR: IFX), one of Europe’s most important semiconductor makers, is ending 2025 in the spotlight as investors weigh a mixed macro environment against a powerful long‑term story in automotive, power electronics and AI data centres.

Infineon share price today: where the stock stands

As of 1 December 2025, Infineon shares are trading around €35.27 on the Frankfurt Stock Exchange (ticker: IFXGn on many data platforms). That’s down about 2.9% on the day, with an intraday range between €35.23 and €36.15, and a 52‑week range between €23.17 and €39.43. ^[1]

Despite today’s weakness, the stock is still showing a low‑double‑digit gain year‑to‑date (about +12%) and roughly +7% over the past five trading days, according to MarketScreener’s real‑time data. ^[2] A separate analysis published this weekend noted that Infineon’s share price has climbed around 15% over the last week, as investors reacted to the latest annual results and guidance. ^[3]

Key snapshot metrics from recent data providers:

Market cap: about €46 billion
Dividend yield: roughly 0.9–1.0%, based on the current price and the proposed dividend
Trailing EPS (TTM): about €0.77 per share ^[4]

At today’s price, the trailing price‑to‑earnings multiple is elevated (above 40x based on FY 2025 earnings), while the forward multiple, using consensus 2026 EPS estimates, is considerably lower.

Fiscal 2025 results: solid performance in a down cycle

Infineon’s fiscal year 2025 (ended 30 September 2025) was officially wrapped up with the publication of the Annual Report and Q4 figures in mid‑November.

From the 2025 Annual Report and LSEG financial tables: ^[5]

Revenue: €14.662 billion (down 2% year‑on‑year)
Segment Result: €2.560 billion, Segment Result margin 17.5%
Gross margin: 39.2%
Net income: €1.015 billion
Basic EPS: €0.77 (vs. €0.98 a year earlier)
Adjusted EPS (diluted): €1.39
Adjusted free cash flow: €1.803 billion (12.3% of revenue)
Proposed dividend:€0.35 per share, unchanged versus the prior year

Revenue by segment in FY 2025 underlines how auto and power applications dominate the portfolio: ^[6]

Automotive: €7.4 bn (50% of revenue, –4% YoY)
Green Industrial Power (GIP): €1.6 bn (11%, –16% YoY)
Power & Sensor Systems (PSS): €4.2 bn (29%, +11% YoY)
Connected Secure Systems (CSS): €1.4 bn (10%, –6% YoY)

The company stresses that despite a cyclical downturn, revenue, margin and adjusted free cash flow all came in at the lower end of its “down‑cycle” target range, and that the business model proved resilient even amid tariffs, currency headwinds and a weaker U.S. dollar. ^[7]

From a balance sheet perspective, Infineon closed the year with:

Total assets: €30.5 bn
Total equity: €17.1 bn (equity ratio ~56%)
Total debt: around €7.2 bn, resulting in a net debt position but still a solid capital structure for a capital‑intensive manufacturer. ^[8]

Strategic positioning: automotive, power and AI infrastructure

Infineon remains a pure‑play power and automotive semiconductor champion with a broad portfolio across power semiconductors (silicon, SiC, GaN), analog chips, sensors, microcontrollers and connectivity. Around 35% of revenue comes from power semiconductors, about 30% from analog/sensors, and roughly 35% from control & connectivity solutions. ^[9]

According to MarketScreener and Reuters profiles, Infineon’s business is organised into four divisions: ^[10]

Automotive (ATV): Chips for EVs, powertrain, ADAS, body & comfort, and automotive microcontrollers
Green Industrial Power / Industrial Power Control: Power modules and devices for energy generation, transmission, storage and industrial drives
Power & Sensor Systems: High‑efficiency power supplies, smartphone and PC power, chargers, management ICs, and a broad sensor portfolio
Connected Secure Systems: IoT connectivity, security controllers, embedded solutions and microcontrollers for industry and consumer

This mix places Infineon at the intersection of three secular trends:

Electrification and e‑mobility (EV power electronics, on‑board chargers, inverters)
Decarbonisation & industrial efficiency (renewables, smart grids, drives)
Digitalisation & AI data centres (high‑efficiency power supplies and systems for AI accelerators and servers)

AI data centre push: Infineon raises its 2026 target

The hottest part of the Infineon story in late 2025 is its AI power business.

In its FY 2025 outlook, management highlighted that while automotive, industrial and consumer demand remains mixed and customers are ordering cautiously, global investment in AI infrastructure is accelerating. ^[11]

According to comments from CEO Jochen Hanebeck and coverage from industry site Procurement Pro:

Infineon now expects to generate around €1.5 billion of revenue from power supply solutions for AI data centres in FY 2026, a significant upgrade versus previous ambitions. ^[12]
Management sees an addressable market of €8–12 billion by the end of the decade in this niche alone. ^[13]
The company is planning investments of roughly €2.2 billion in FY 2026 to support its manufacturing and capacity roadmap. ^[14]

Reuters summarised the story succinctly in November: Infineon raised its sales forecast for chips used in AI data centres while remaining cautious on the automotive and industrial outlook, reflecting the different points of the cycle in its end markets. ^[15]

Management guidance for FY 2026

Management’s guidance for FY 2026 paints a picture of steady, but not explosive, growth:

Moderate revenue growth overall, with currency acting as a headwind
Adjusted gross margin targeted in the low‑40% range
Segment Result margin guided to the high‑teens
Continued high capex (~€2.2 bn) to expand capacity, especially in power semiconductors and wide‑bandgap technologies. ^[16]

At a more granular level, analyst‑aggregator Simply Wall St reports that after the FY 2025 results:

19 analysts now forecast 2026 revenue of about €15.6 billion, implying ~6.6% growth vs. the last 12 months
Statutory EPS is expected to jump by about 70% to €1.29 in 2026 (from around €0.76–0.77 in FY 2025)
Before the results, consensus had pencilled in €15.8 bn revenue and €1.55 EPS, so the revenue view is largely unchanged while earnings expectations were cut. ^[17]

In other words: analysts still see top‑line growth, but margins and profits may recover more slowly than previously hoped.

Analyst ratings and price targets: mostly bullish, with one fresh neutral

On 1 December 2025, JP Morgan reiterated a Neutral rating on Infineon with a price target of €39.20, in a research note highlighted by MarketScreener this morning. ^[18]

However, the broader analyst community remains clearly positive:

MarketScreener’s consensus shows 22 analysts with a “Buy” mean rating and an average target price of about €43.6, implying roughly 20% upside from a recent close of €36.33. ^[19]
Investing.com data, based on around 20 analysts, also shows an average 12‑month price target near €43.6 (high: €51.3, low: €35.5) and characterises the consensus as “Strong Buy”, with an implied upside of around 24% from current levels. ^[20]

Recent notable broker views include: ^[21]

UBS: Buy, target €44
Jefferies: Buy, target €48
Goldman Sachs: Buy
Warburg Research: Buy
Berenberg: Buy, target €40, highlighting cost‑saving progress and margin potential
BofA Securities: Buy, target trimmed to €45 from €46, still viewing Infineon as a top pick in European auto semis

The Berenberg note in August emphasised that Infineon is executing its cost‑saving programme faster than expected and could ultimately exceed its 25% segment margin target through the cycle once the market normalises. It also highlighted Infineon’s strong market share in automotive microcontrollers (~32%) and power semiconductors (~29%), and its strategic positioning in AI server power. ^[22]

How the market digested FY 2025: earnings miss vs. structural story

While Infineon’s FY 2025 numbers were in line with its own guidance, they disappointed some analysts on earnings:

Simply Wall St notes that FY 2025 statutory EPS missed analyst estimates by about 20%, coming in around €0.76 per share, even as revenue roughly met expectations. ^[23]
Yet, the consensus price target barely moved, staying near €43–44 per share, suggesting that analysts see the earnings shortfall as cyclical rather than structural. ^[24]

This pattern is typical for a capital‑intensive chipmaker in a mid‑cycle downturn: margins get hit by weaker utilisation and pricing, but the long‑term demand drivers – EVs, renewables, AI – remain intact.

Key catalysts to watch in 2026

For investors following Infineon into 2026, several upcoming catalysts stand out:

Next earnings release – 4 February 2026
Most financial calendars, including Investing.com and several forecasting sites, list 4 February 2026 as the next earnings date. ^[25]
Execution on AI power revenue target
The market will focus closely on whether Infineon is tracking towards its €1.5 bn AI data‑centre power revenue target for FY 2026 and how quickly this business scales relative to traditional auto and industrial segments. ^[26]
Automotive and industrial demand recovery
Infineon has been cautious on automotive and industrial orders, citing cautious customer behaviour and short lead times. A visible upturn in order intake, particularly for EV power and industrial drives, could support both revenue and margins. ^[27]
Cost‑saving programme and margin trajectory
Broker research notes that management aims to realise most of the planned cost savings by 2027, with half expected already in 2025 and two‑thirds in 2026. Successful delivery here is a key lever for margin expansion and free cash flow. ^[28]
Capex and balance sheet discipline
With capex running above €2 bn per year and net debt increasing, the market will watch how Infineon balances growth investments (especially in wide‑bandgap fabs) with maintaining a strong balance sheet and sustainable shareholder returns. ^[29]

Opportunities and risks for Infineon shareholders

Opportunities

Structural growth in EVs and renewables: Infineon is one of the clear leaders in automotive power electronics and industrial power modules, markets that should expand structurally as EV penetration rises and grids are modernised. ^[30]
AI infrastructure tailwind: The upgraded €1.5 bn AI power revenue target for FY 2026 indicates meaningful exposure to one of the fastest‑growing parts of the semiconductor market, with a multi‑year runway into the late 2020s. ^[31]
Strong competitive moat: Large market shares in automotive microcontrollers and power semiconductors, a broad portfolio across silicon, SiC and GaN, and deep customer relationships give Infineon a durable edge. ^[32]
Consensus analyst support: With most major brokers rating the stock a Buy and average targets well above the current price, the sell‑side still sees upside potential, especially if margins recover towards the long‑term 25% segment margin ambition. ^[33]

Risks

Cyclical and macro sensitivity: Automotive and industrial demand remain exposed to global growth, tariffs and inventory cycles. Management itself highlights a “still mixed” market environment heading into 2026. ^[34]
Execution risk in AI power: While the AI data‑centre opportunity is large, Infineon must compete with global peers, ramp capacity on time and maintain high yields in increasingly complex wide‑bandgap technologies. ^[35]
Capital intensity and leverage: Heavy capex and the shift from net cash to net debt mean that free cash flow generation and returns on invested capital will be under scrutiny, especially if end‑market demand remains choppy. ^[36]
Valuation: Even after the recent rally, Infineon’s trailing P/E multiple is high versus current earnings, reflecting investor confidence in a cyclical upswing and AI‑driven growth. If earnings recovery disappoints, the multiple could compress.

Bottom line: how attractive is Infineon stock at €35–36?

Putting it all together:

Today’s set‑up: Infineon trades near the middle of its 52‑week range but below recent highs around €39, with consensus price targets clustered in the low‑to‑mid €40s, implying ~20–25% upside over the next 12 months if brokers are correct. ^[37]
Fundamentals: FY 2025 was a “good enough” year in a downturn – slightly lower revenue, compressed margins, but solid free cash flow and a stable dividend. The balance sheet remains robust enough to fund growth. ^[38]
Growth drivers: The long‑term story in EVs, industrial power and AI data‑centre power supplies is intact and, if management delivers, could support higher margins and earnings from 2026 onward. ^[39]

From a market‑wide perspective, Infineon stock is currently treated more like a high‑quality cyclical growth name than a deep‑value play: investors are willing to pay a premium multiple today in anticipation of earnings catching up as the cycle turns and AI‑related demand accelerates.

Whether that makes Infineon a buy at current levels ultimately depends on each investor’s time horizon and risk tolerance:

Long‑term investors who believe in sustained electrification and AI infrastructure may view dips towards the lower end of the 52‑week range as opportunities, provided they are comfortable with cyclical swings.
More conservative or income‑focused investors may be cautious about the relatively modest dividend yield and the uncertainty around the pace of margin recovery.

Important notice: This article is for informational and journalistic purposes only and does not constitute investment advice, a recommendation to buy or sell securities, or a substitute for independent financial research. Always consider your own financial situation and, if necessary, consult a licensed financial adviser before making investment decisions.