Infineon Technologies AG: AI DC Thesis Confirmed

Research evidence excerpt

M

Update

August 5, 2026 06:19 AM GMT

Morgan Stanley & Co. International plc+

Infineon Technologies AG | Europe

Lee Simpson

Equity Analyst

AI DC Thesis Confirmed

Shawn Kim

Equity Analyst

Nigel van Putten

AlphaSignals Earnings Reaction

Equity Analyst

Strengthens our thesis

Modest upside

Modest revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Amelia M Scicluna

Source: Company data, Morgan Stanley Research

Key Takeaways

Raises FY26 guide on increase in AI D/C demand (prior 'grow moderately' yy) and

increases data centre sales targets for FY26/27.

FY26 GM% unchanged at low-to-mid 40s% with a c.20% segment (unchanged)

in-line with consensus (19.9%).

Q3 sales/margins ahead of expectations but Q4 guide is better with €4.7bn sales

(cons €4.6bn) - growth qq seen in all segments (including autos).

Research Associate

Infineon Technologies AG (IFXGn.DE, IFX AV)

ADRIFNNY.PK

Technology - European Semiconductors | Germany

Stock Rating

Industry View

Price target

Shr price, close (Aug 4, 2026)

52-Week Range

Mkt cap, curr (mn)

Net debt (12/26e) (mn)*

EV, curr (mn)*

Overweight

In-Line

€91.00

€63.72

€88.83-30.82

€82,948

€2,599

€88,277

* = GAAP or approximated based on GAAP

Autos growth helped by share gains with SDVs; PSS growing significantly more

than group whilst industrials seen rising moderately this year.

The analyst call is at 09:30 CET today.

First Take. The growth in PSS, driven by data centres, this year continues to stand

out. Automotive meantime seems to be improving, we think due to MCU traction in

SDVs. We expect CSS to be in recovery and GIP to benefit from continued AI

infrastructure trends. Margins, described again as low-to-mid 40s%, straddle

consensus (c.43%) for FY26, the segment result (guided to c.20%) is also reiterated.

Infineon keeps the guide for investments at €2.7bn, with focus on build-out of

capacity for the AI data centre ramp (mainly at Dresden). The company raised its

guide for AI data centre sales to more than €1.6bn this year (prior €1.5bn) and

'materially upgrade' their projection of c.€2.5bn next year. This was accompanied by

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