Share price revision and potential for reversal at Infineon
In a positive development, Infineon, the German semiconductor manufacturer, has reported improved financial results for the third quarter of fiscal year 2024/25. Despite ongoing challenges, the company experienced a 3% increase in revenue quarter-on-quarter, reaching €3.7 billion, and a 9% increase when adjusted for currency effects.
CEO Jochen Hanebeck highlighted the strong demand in servers and data centers related to AI, as well as some consumer-oriented semiconductor applications, as key drivers of this growth. However, the automotive segment—the core business—only saw a slight growth in sales.
The profitability improved significantly, with segment profit rising by 11% to €668 million quarter-on-quarter, resulting in a margin increase of 1.3 percentage points to 18%. This surpassed analysts' expectations, but the automotive segment's margin declined. Overall group profit after taxes rose by 31% quarter-on-quarter to €305 million, although it remained nearly 25% below the prior year's level.
CEO Hanebeck also remarked on a more favorable tariff environment with less negative impact from US tariffs than previously expected. He noted that the semiconductor industry is navigating a macroeconomic and geopolitical environment marked by high uncertainty and nervousness. Customers are cautious, ordering more short-term and not broadly restocking inventories, especially in the automotive sector, but signs of upward momentum are increasing.
Infineon has announced a special offer for those interested in staying updated on the company's progress. For 9.95 €, you can subscribe to DER AKTIONÄR for a month, granting you secure access to the latest news and analysis.
While the offer does not repeat the profit margin forecast or CEO's statements mentioned earlier, it does provide an opportunity for readers to stay informed about Infineon's outlook for Q3 2024/25, which is cautiously optimistic with improving revenues and profitability amid challenging demand patterns and geopolitical uncertainties.
- With the improved financial results, Infineon's strong demand in servers, data centers, and AI-related semiconductor applications has been a significant contributor to the growth in their business sector.
- Despite the decline in the automotive segment's margin, there is an opportunity for investors to stay updated on Infineon's progress and outlook for Q3 2024/25 by subscribing to DER AKTIONÄR for €9.95 per month, ensuring secure access to the latest news and analysis.
