Infineon stock falls after Morgan Stanley cuts its rating

Published on 09/08/2026 at 17:28 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Infineon stock is weaker after Morgan Stanley cut the German chipmaker to Equal Weight and lowered its target to EUR 65 on September 8, 2026. The move meets a recent record quarter, but the stock has already swung sharply in Frankfurt.

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Infineon Technologies AG stock (ISIN DE0006231004) fell after Morgan Stanley cut its rating to Equal Weight and lowered its target to EUR 65 on September 8, 2026. The same broker note followed a strong prior session: Infineon closed on Xetra at EUR 60.79 on September 7, 2026, up 6.91 percent from EUR 56.86.

Rating cut meets a strong quarter

The broker call matters because it lands after Infineon's third fiscal quarter results for fiscal 2026. The company reported revenue of EUR 4.172 billion, up 9 percent quarter on quarter, while the adjusted gross margin reached 42.8 percent and free cash flow came in at EUR 599 million.

That combination explains why the stock had already outperformed before the downgrade. Warburg Research had upgraded Infineon to Buy on September 7, 2026, with a price target of EUR 84, while the latest analyst consensus cited by MarketScreener showed an average target of EUR 86.59 versus the last close of EUR 60.79.

Trading stays volatile

Market data on September 8, 2026 showed Infineon at EUR 59.24 in early trade, down 2.55 percent, with 275,177 shares already traded via Xetra. On the previous completed session, the range stretched from EUR 56.86 to EUR 60.79, and volume reached 4,572,607 shares.

The numbers point to a stock that is reacting to both earnings momentum and a tighter analyst stance. For investors, the gap between the new EUR 65 target and the September 7 close of EUR 60.79 is now much smaller than the EUR 84 and EUR 85 targets cited by Warburg Research and Deutsche Bank Research in recent coverage.

Data center debate

Infineon's most recent operating update also matters for the debate around data center demand. The company said fiscal 2026 revenue for the third quarter reached EUR 4.172 billion, while guidance for the full year was lifted to about EUR 16.3 billion and the segment result margin was put at around 20 percent.

Infineon chips

Power semiconductors, automotive chips and industrial power products remain the core story behind the latest quarter. Those areas helped lift revenue to EUR 4.172 billion in fiscal Q3 2026 and supported the 42.8 percent adjusted gross margin.