Postcard from Dresden: Company Update

Research evidence excerpt

Postcard from Dresden: Company Update

Deutsche Bank

Research

Rating Company Date

Buy Infineon 1 July 2026

Company Update

Europe Technologies

Germany

Reuters Bloomberg Exchange Ticker Price at 30 Jun 2026 (EUR) 81.67

IFXGn.DE IFX GR GER IFXGn

Price Target (EUR) 90.00

Technology

ADR ISIN 52-week range (EUR) 88.00 - 31.28

Semiconductors

IFNNY US45662N1037

Postcard from Dresden

Valuation & Risks

Johannes Schaller

Steep capacity ramp to drive accelerating growth in '27 and beyond - reiterate Associate Director of Equity Research - Germany

Buy +49-69-910-31731

We visited Infineon's new Dresden 4 fab today ahead of the official opening

ceremony on July 2nd. A tour of the cleanroom as well as meetings with Infineon's Nicolas Herms

Research Analyst

COO Alexander Gorski and the local operational team reaffirm our view that the

+49-69-910-13052

company has substantial growth potential from 2027 onwards as more capacity

becomes available. A fast ramp at Dresden 4 plays an important role here but we are Robert Sanders

also incrementally positive on capacity in Villach as well as Kulim and foundry Research Analyst

partners. Demand for Infineon's AI products remains strong and we see scope for +44-20-754-58394

the company to substantially lift its FY27 AI revenue target of E2.5b on the back of Nooshin Nejati

capacity expansion as well as pricing - likely with FY26 results in November (and not Research Analyst

with FQ3 in August), in our view. Pricing also remains a positive driver with a second +49-69-910-61797

round of price increases now communicated that goes way beyond just AI products Yusuf Jamal

and should therefore be more meaningful on a group level than the last increase, in Research Associate

our view. We reiterate our bull case for close to 20% revenue growth in FY27e