Silver Sunset: Top EU TMT Talking Points Today - Let‘s Discuss

Research evidence excerpt

Silver Sunset: Top EU TMT Talking Points Today - Let‘s Discuss

ng run. The core bullish thesis remains centred on AI-related demand and capacity expansion.

Investors generally expect AI revenues to exceed management’s current targets, with buy-side expectations closer to €2.7–3.0bn

versus company guidance of €2.5bn over the next year. By 2028, expectations have shifted toward €3.5–4.0bn, with some more

optimistic conversations pointing to figures as high as €6bn. While upside to estimates still exists, the stock’s recent performance

has narrowed the gap between future earnings potential and current valuation. Another area of debate among bulls is Dresden.

With production set to ramp from July, Infineon has guided to approximately €5bn of revenue over three years, although this

refers primarily to fab-related capacity and excludes module revenues. Investors broadly view this guidance as conservative and

see scope for additional upside as utilisation ramps.

A similar discussion is unfolding around STMicro. Buy-side investors are underwriting approximately €3.50–4.15 of 2028 EPS,

supporting valuation frameworks that imply share prices above €80. Relative preference remains skewed toward STM versus IFX

in terms of upside to estimates, although the story is more execution dependent.The key debate around STMicro is increasingly

one of valuation rather than earnings. Historically, the company has traded at a discount to Infineon, but investors are beginning to

question whether that discount remains warranted given STM’s evolving growth profile. In particular, exposure to LEO satellite

infrastructure is becoming an increasingly important component of the investment case. While the business currently accounts for