Infineon Climbs to 89.67 Euros as Jefferies Sees Further Gains from AI Power Demand
03.06.2026 - 18:12:38 | boerse-global.de
The race to cool and power the densest AI clusters is creating a new bottleneck — electricity infrastructure — and Infineon is positioning itself at the center of it. The chipmaker unveiled a 24-kilowatt reference design for backup battery units built around its CoolSiC silicon-carbide technology, claiming an efficiency above 99%. The unit, designed for 800-volt DC buses in AI data centers, delivers 450 watts per cubic inch of power density, a figure that cuts the space needed in modern server racks. The stock responded by touching 89.67 euros earlier this week, its highest level since the dot-com era.
Jefferies added fuel to the rally by lifting its price target on Infineon from 75 to 96 euros, maintaining a buy recommendation. Analyst Janardan Menon outlined three drivers: mounting demand for power-management solutions in AI data centers, expanding capacity, and rising prices in the 2026/2027 fiscal year — combined with a stronger recovery in automotive and industrial markets. His earnings forecasts for fiscal 2026/2027 and 2027/2028 are roughly 11% above consensus, a gap that underscores the bank’s conviction in structural rather than one-off catalysts.
The financial arithmetic supports the bullish thesis. In its second fiscal quarter of 2026, Infineon generated revenue of 3.81 billion euros and a segment-result margin of 17.1%. Management guided third-quarter sales to around 4.1 billion euros and raised its full-year outlook in May, targeting a segment margin of about 20% and adjusted free cash flow of roughly 1.65 billion euros. The company’s annualized 30-day volatility of 60.66% and a relative strength index of 63.0 suggest the stock is not yet overbought, though it now sits 53.42% above its 50-day moving average and more than 105% above its 200-day line.
Should investors sell immediately? Or is it worth buying Infineon?
Infineon is deepening its ties with NVIDIA through two initiatives. The new battery design integrates into the NVIDIA MGX AI Factory ecosystem, reducing integration work for customers. Separately, Infineon is embedding its OPTIGA TPM SLB 9672 security module into the NVIDIA Jetson Thor platform, offering a quantum-resistant hardware security layer. The company is banking on regulatory tailwinds too — the EU Cyber Resilience Act and the EU AI Act both push for more robust security in AI hardware, a trend that plays directly to Infineon’s strengths.
Operational expansion continues alongside the product push. Construction of the Smart Power Fab in Dresden carries an investment of roughly 5 billion euros. Infineon also disclosed a collaboration with Munich-based start-up ExoMatter on AI-driven materials development; ExoMatter recently closed a pre-seed round of 1.7 million euros. For fiscal 2025, the group posted revenue of 14.7 billion euros and employed around 57,000 people.
The stock has rallied about 52% over the past month and roughly 130% year to date, adding 157% over the trailing twelve months. Wednesday’s high of 89.67 euros briefly surpassed the previous 52-week peak before the share price settled around 88 euros. That level is still below the new Jefferies target — a gap that leaves room for upside if the company can convert its design wins into recurring revenue.
The market’s next focus will be whether the combination of CoolSiC power management, NVIDIA certification, and upgraded financial targets translates into concrete orders for AI data centers. Infineon has already demonstrated that demand for voltage regulators and efficient power supplies is running high, but sustaining a valuation that reflects years of compound growth will require the coming quarters to deliver on both revenue growth and margin expansion.
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Infineon Stock: New Analysis - 3 June
Fresh Infineon information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
