On Feb 4, Infineon's shares surged 11% as the German chipmaker raised its full-year revenue outlook and delivered quarterly results and guidance that exceeded expectations.
According to Juergen Wagner, an analyst at Stifel, Infineon's favorable forecast contrasts with other microchip manufacturers for automotive and industrial applications that have fallen short of expectations, sometimes significantly.
Infineon's stock soared 11% at 0815 GMT, set for its best performance since May, outperforming the German blue-chip index.
Charter Equity Research analyst Jack Egan noted that Infineon's report likely alleviated concerns about weakening automotive demand, with the company forecasting flat to slightly increasing revenue in the automotive sector for FY25. The Power & Sensor segment is also anticipated to see significant growth in FY25, possibly driven by Infineon's artificial intelligence server products.
CEO Jochen Hanebeck stated, Following the anticipated inventory reduction, we foresee a gradual recovery in demand for the current fiscal year, in reference to the group's 12-month accounting period ending in September.
The company also projected second-quarter revenue for fiscal year 2025 to be 3.6 billion euros ($3.7 billion), surpassing a previously provided analyst forecast of 3.42 billion.
(Note: The currency conversion rate at the time was $1 = 0.9696 euros)