Infineon Technologies Market leader in AI power. Deserves a premium multiple. Maintaining OW, raising TP to €96

Research evidence excerpt

Infineon Technologies Market leader in AI power. Deserves a premium multiple. Maintaining OW, raising TP to €96

J P M O R G A N Europe Equity Research

25 June 2026

Infineon Technologies Overweight

IFXGn.DE, IFX GR

Market leader in AI power. Deserves a premium Price (24 Jun 26):€78.89

multiple. Maintaining OW, raising TP to €96 ▲Price Target (Dec-27):€96.00 Prior (Dec-27):€74.00

• AI power market leader. Segment should provide substantial growth for

company: Our analysis suggests Infineon is likely to be the market leader in European Tech Hardware &

Payments AI power. The company’s advantage is that it has products in every segment

of the power supply chain from the grid to the processor. It is also the leader in Sandeep Deshpande AC

the different segments of the market including Silicon MOSFETs, Gallium (44-20) 7134-5276

sandeep.s.deshpande@jpmorgan.com

Nitride FETs and Silicon Carbide transistors. We estimate that the AI power

market (see First Principles here) could be ~€14bn in 2028 and Infineon could Craig A McDowell

(44-20) 7742-4576

have revenue in this market of as much as €4.2bn – more if its share in 2028 craig.mcdowell@jpmorgan.com

remains where it is today. (Our new forecast has the company reporting €4bn

Anthony Girard

in sales, i.e. we are more conservative vs. current trends). Thus, we estimate (44-20) 3493-6469

this business should expand at a 4-year CAGR of 100% from ’24-’28. anthony.girard@jpmorgan.com

• In the current up-cycle, Infineon's margins should exceed peak seen in the J.P. Morgan Securities plc

Covid up-cycle: Infineon's peak margin in the Covid up-cycle was 27% in Specialist Sales contact details:

FY23. Based on the company's FY26 margin guidance of ~20%, it should

Scott Silver - Specialist Sales -

achieve ~25% margin in the Sept quarter.