Susquehanna Trims Infineon Target to EUR 85 While Keeping Buy Rating
Published on 10/28/2026 at 07:01 | Editorial boerse-global.de
Infineon's price target took a haircut this week, but the investment case did not. Susquehanna analyst Christopher Rolland cut his target on the German chipmaker to EUR 85 from EUR 100 on 21 October, according to media reports, while reaffirming a "Positive" rating on the stock. The move came as part of a preview of upcoming semiconductor earnings, and the lower number arrived without any change to the firm's overall verdict on the shares.
Separately, The Goldman Sachs Group reported a shift in its aggregate position in Infineon. As of 20 October, the bank disclosed that it had crossed a threshold and now holds 4.81% of the company, down from 5.36% previously.
A Multi-Year Bet on Gallium Nitride
The analyst note lands against the backdrop of a major manufacturing push. Infineon has unveiled plans to expand GaN production in Villach, with roughly EUR 1.1 billion earmarked for the project. The investment is set to run through 2034, and the company intends to build Europe's first high-volume production line for GaN power semiconductors there, using 300-millimeter wafers. Production is scheduled to begin at the end of 2027 — a timeline that makes the Villach build-out a long-horizon commitment rather than a facility already humming.
Brussels is chipping in: Infineon has cited EUR 319 million in support under the European Chips Act. Investors greeted the announcement warmly, sending the stock up 2.9% in the prior session to close at EUR 52.30.
Should investors sell immediately? Or is it worth buying Infineon?
Enphase and NVIDIA Anchor the AI Power Story
GaN technology also sits at the heart of two partnerships Infineon has been assembling. Under a collaboration with Enphase Energy, Infineon will supply what the two companies describe as the world's first monolithic bidirectional 900-volt GaN switches, destined for Enphase's solid-state transformer power modules in AI data centers.
The tie-up with NVIDIA, expanded about a week ago, points in the same direction: GaN-based power conversion systems built for 800-volt direct-current architectures in AI data centers. Between the two, the cooperation addresses how GaN gets deployed in power conversion, while the Villach plan targets the volume manufacturing behind it.
Infineon and NVIDIA have also teamed up with UnternehmerTUM Accelerator and Microsoft on the Physical AI Growth Lab, an equity-free accelerator aimed at start-ups working in physical AI, robotics and industrial AI. The program is slated to run from January through April 2027.
Infineon at a turning point? This analysis reveals what investors need to know now.
Investors will get their next hard data point on 10 November 2026, when Infineon publishes results for the fourth quarter and the 2026 fiscal year.
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