Infineon Breaks €70 Barrier for First Time Since Dot-Com Era as AI and Power Research Fuel Rally

Infineon shares close at €73.19, up 5.89%, hitting highest since 2000. Nvidia's record revenue, a Citigroup upgrade to €80, and a new EU power electronics project fuel the rally.

Infineon shares surged past the €70 mark on Friday for the first time since the dot-com peak of 2000, closing at €73.19 with a single-day gain of 5.89%. The move made the DAX component the index’s top performer and cemented a rally that has nearly doubled the stock since the start of the year.

The immediate catalyst came from across the Atlantic. Nvidia reported first-quarter revenue of $81.6 billion for its fiscal 2027, an 85% jump from the prior year, with its data-center business surging 92% to $75.2 billion. The US chip giant also guided for $91 billion in the current quarter, signaling that demand for artificial intelligence infrastructure shows no sign of cooling. European semiconductor stocks rode the wave: STMicroelectronics climbed 5.2%, ASML added 4.7%, and the STOXX 600 rose 0.73%, posting its biggest weekly gain in seven weeks.

But the story for Infineon is broader than a single Nvidia beat. On 18 May, Citigroup analyst Andrew Gardiner lifted the price target on the stock from €52 to €80, reaffirming a “Buy” rating. He pointed to strengthening chip demand from both the automotive and industrial sectors — and the growing weight of the AI theme in Infineon’s portfolio. The company’s strength in power semiconductors and energy efficiency components is increasingly seen as essential to running the world’s AI data centres.

Infineon’s own financials underpin the case. At the start of May, the group posted second-quarter revenue of €3.812 billion and a segment-result margin of 17.1%. Management guided for around €4.1 billion in third-quarter sales and lifted the full-year forecast to a margin of roughly 20% with adjusted free cash flow of about €1.65 billion. The Power & Sensor Systems division is expected to generate €1.5 billion in revenue in fiscal 2026 and €2.5 billion in 2027, driven by power electronics for AI facilities, with planned capital expenditure of €2.7 billion — much of it for ramping production in Dresden.

The bullish case does not rest solely on AI. On 20 May, Infineon launched the European research project Moore4Power, a consortium of 62 partners from 15 countries aimed at making power electronics more efficient for renewable energy, electric mobility and industrial applications. The initiative gives investors a second growth engine beyond the data-centre boom and broadens the narrative for the stock.

Chart technicians have plenty to work with. Friday’s close sits 47% above the 50-day moving average and 81% above the 200-day line. The stock has rallied 133% from its 52-week low of €31.38 hit in September 2025, and the 12-month gain stands at 110%. The €70 level now becomes a key support.

Investors will have opportunities to hear from management in the coming weeks — at the DB Access Championship Conference in Frankfurt on 27 May and the BofA Global Tech Conference in San Francisco early next month. The next quarterly results are expected on 5 August 2026. The pressing question remains whether the rotation into European semiconductor stocks can sustain itself and whether the market will permanently price power semiconductors as a core AI-infrastructure bet.