Infineon Shares Surge on Upgraded Outlook and Strong Quarterly Results
German chipmaker Infineon (IFX.DE) saw its stock price jump over 10% after it raised its full-year revenue expectations slightly and reported better-than-expected quarterly results and guidance.
The positive outlook stands out amidst a backdrop of other microchip makers for automotive and industrial applications missing expectations, some by a significant margin, according to Juergen Wagner, an analyst at Stifel.
Infineon's shares gained 11% by 0815 GMT, poised for their best daily performance since May. The positive outlook has allayed concerns about a prolonged automotive demand decline, with the company expecting flat-to-slightly higher automotive revenue in fiscal 2025, said Jack Egan, an analyst at Charter Equity Research.
The Power & Sensor segment is also projected to grow significantly in fiscal 2025, likely driven by Infineon's server products centered around artificial intelligence (AI), Egan added.
"Following the expected inventory reduction, we continue to foresee a gradual recovery in demand for the current fiscal year," said CEO Jochen Hanebeck in a statement, referring to the company's 12-month accounting period ending in September.
Infineon also announced an estimated second-quarter revenue of 3.6 billion euros ($3.7 billion), exceeding analysts' consensus forecast of 3.42 billion euros provided by the company. ($1 = 0.9696 euros)