Silver Sunrise Euro TMT Daily

Research evidence excerpt

Silver Sunrise Euro TMT Daily

had gone long into the event) and very low short

interest (~1% on our data) I don’t expect shares to run away… Blickman has been as bullish as ever whilst on the road

over the last few months (which is unsurprising).

• INFINEON WEAKNESS: Somewhat surprisingly, I’ve had a significant amount of inbound asking why Infineon shares

are under pressure (-3%) and lagging the broader analogue group. It feels as though, over the last few months, the market

has become increasingly focused on the AI-related growth vectors and, to some extent, forgotten that automotive still

matters and cannot simply be ignored. BMW’s profit warning appears to have reignited those concerns (whilst an

unsurprising development for industrial focused investors). The company highlighted that the negative development in

the Chinese automotive market accelerated further in 2Q, while the China Passenger Car Association has again cut its

full-year industry forecast. BMW noted that positive trends in Europe and the US are insufficient to offset weakness in

China and the broader Asia-Pacific region. Given automotive represents roughly 46.5% of Infineon’s FY26 mix, this is

clearly not a great read-across. While China accounted for around 29% of group revenue last year – and should be lower

this year – the exposure remains meaningful. To be fair, some investors argue that the China weakness is hardly new and

was already a major debate point 12 months ago. Moreover, although BMW is an Infineon customer, Chinese OEMs are

customers as well, and Infineon has already been exiting lower-end portions of the market, a dynamic that is reflected in

current numbers. Importantly, some are reverse broking that IFX is not losing share in its higher-end MOSFET and IGBT