Infineon Stock Surges 11% on Strong Guidance and Auto Sector Demand

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Infineon shares soared 11% after the German semiconductor company raised its full-year revenue outlook and posted quarterly results that exceeded expectations. The positive guidance sets Infineon apart from other chipmakers in the automotive and industrial sectors, many of which have fallen short of forecasts.

At 08:15 GMT, Infineon stock was leading the German blue-chip index (.GDAXI) and was on pace for its best performance since May. Analysts welcomed the news, with Juergen Wagner from Stifel noting that Infineon’s outlook contrasts with the more disappointing results seen across the sector.

Charter Equity Research analyst Jack Egan highlighted that the company’s forecast for flat-to-slightly higher automotive revenue in fiscal year 2025 alleviates concerns about weakening demand in the sector. Additionally, Infineon’s Power & Sensor segment is expected to show significant growth, likely driven by demand for its artificial intelligence (AI) server products.

CEO Jochen Hanebeck acknowledged that demand recovery would be gradual, following an expected reduction in inventory. However, the company remains optimistic about its performance over the fiscal year, which runs through September.

For the second quarter, Infineon projected revenue of €3.6 billion ($3.7 billion), surpassing the company-provided analyst consensus of €3.42 billion.

 

Apple Raises Concerns Over First Porn App on iPhones Under EU Rules

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Apple has criticized the availability of a pornography app on iPhones in the European Union, arguing that the bloc’s digital regulations are eroding consumer trust. The app, called Hot Tub, is being distributed via AltStore, one of the alternative app stores enabled under the EU’s Digital Markets Act (DMA).

For years, Apple maintained strict control over the App Store, with former CEO Steve Jobs emphasizing in 2010 that keeping pornography off iPhones was a “moral responsibility.” However, under the DMA, Apple must now allow third-party app stores, which led to AltStore’s distribution of Hot Tub.

Apple expressed concerns over the potential risks posed by such content, particularly for children, stating, “This app and others like it will undermine consumer trust and confidence in our ecosystem.” Despite Apple’s reservations, Hot Tub was able to pass the company’s required “notarization” process, which primarily checks for cybersecurity threats rather than content approval.

AltStore, backed by Epic Games—the company behind the antitrust case against Apple—highlighted this notarization by claiming Hot Tub was the “world’s first Apple-approved porn app.” Apple quickly refuted this, asserting, “We certainly do not approve of this app and would never offer it in our App Store. The truth is that we are required by the European Commission to allow it to be distributed.”

Epic Games CEO Tim Sweeney defended the DMA, arguing that Apple had previously misused its gatekeeping power to stifle competition. However, he clarified that Epic’s own EU app store does not carry Hot Tub and has never hosted pornographic content.

 

Palantir Warns Against DeepSeek AI, Projects Strong 2025 Revenue

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Palantir has advised its clients, particularly those in the U.S. government, against using AI models developed by Chinese startup DeepSeek, citing security concerns. Chief Revenue Officer Ryan Taylor stated that no U.S. government entity would be able to use DeepSeek’s technology. His comments follow reports that federal agencies, including NASA, have banned the use of DeepSeek’s AI.

Despite these concerns, Palantir reported strong financial projections, forecasting first-quarter and full-year revenue above Wall Street expectations. The company expects 2025 revenue to range between $3.74 billion and $3.76 billion, surpassing analysts’ estimates of $3.52 billion. This optimistic outlook drove Palantir’s stock up 22% in extended trading.

More than 40% of Palantir’s fourth-quarter sales came from the U.S. government, reflecting its deep ties to federal agencies. Analyst Gil Luria noted that Palantir’s strategic vision aligns well with current government priorities. However, the company is actively expanding its commercial sector presence, projecting a 54% increase in U.S. business revenue to over $1.8 billion in 2025.

Palantir’s AI platform, AIP, has gained traction as businesses seek to deploy generative AI for testing, debugging, and scenario analysis. Additionally, Taylor suggested that the expanded tariffs announced by former President Trump could boost demand for Palantir’s supply-chain and logistics analytics.

For the fourth quarter, Palantir reported adjusted earnings of 14 cents per share, beating analysts’ expectations of 11 cents. It also forecast first-quarter revenue between $858 million and $862 million, well above the estimated $799.4 million.