Infineon Shatters 26-Year Ceiling as AI Infrastructure Boom Turns the Chipmaker into the DAX’s Hottest Stock

Infineon shares close at €73.19, a level last seen in 1999, as broad demand from AI, automotive, and industrial sectors drives 91% year-to-date gain.

The German semiconductor giant has accomplished something not seen since the dot-com era: its shares closed at €73.19 on Friday, a level last touched 26 years ago. The milestone caps a staggering run that has seen the stock more than double from its September 2025 low of €31.38 and catapult it to the top of the DAX this year with a gain of roughly 91%.

What distinguishes this rally from a mere speculative spike is the breadth of demand behind it. Citigroup analyst Andrew Gardiner provided the latest catalyst, lifting his price target by more than 50% from €52 to €80, citing unexpectedly strong order dynamics that extend well beyond the artificial intelligence frenzy. Infineon’s core automotive and industrial segments, long considered mature, are also showing renewed vigour.

The company’s own numbers back up the optimism. In the second quarter it posted revenue of €3.8 billion and a segment result of €653 million. Management is simultaneously pushing through a reorganisation, collapsing four divisions into three to sharpen responsiveness, particularly in the automotive business. The structural shift is being rewarded by the market as a sign of long-term strategic clarity.

Nowhere is that clarity more evident than in the AI data-centre power-supply business, a segment Infineon expects to generate €1.5 billion in revenue by 2026 and €2.5 billion by 2027. The trajectory is reshaping how investors value the stock: annualised volatility stands above 56%, and the share price now trades more than 80% above its 200-day moving average — a clear signal of how far the equity has outpaced its long-term trend.

The rally also puts Infineon’s relative performance in perspective. Its European rival STMicroelectronics has surged roughly 158% year to date, reflecting a higher cyclical beta. Infineon’s more defensive tilt in power semiconductors and industrial applications costs it some upside in a red-hot market but offers greater resilience when the cycle turns. For now, the market is betting that the structural tailwinds from electrification, automation and AI infrastructure will keep the momentum alive.