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.