Infineon's Data-Center Momentum Builds as Berenberg and Morgan Stanley Square Off

Infineon broadened AI data-center, wearable and space partnerships, but analysts remain split and no revenue figures were disclosed.

Infineon has spent the past few weeks stacking up partnerships and product launches across data-center power, wearables and even space hardware — a burst of activity that has done little to settle the debate on Wall Street about where the chipmaker's shares are headed next.

At the heart of the push is the electricity-hungry infrastructure behind artificial intelligence. Early in September, Infineon and Skeleton Technologies signed a memorandum of understanding to jointly develop highly efficient, resilient power-supply solutions for modern data centers, a segment gaining importance as AI workloads drive energy demand higher. Neither company disclosed revenue or volume figures tied to the agreement.

That was followed by word that Infineon is widening an existing alliance with SolarEdge Technologies. On Wednesday, the two firms said they would extend their collaboration on solid-state circuit breakers for 800-volt DC data centers — switching technology viewed as a building block for power distribution in particularly powerful AI server farms. The tie-up deepens a partnership the two companies already had in place.

Infineon also expanded its own catalog rather than relying solely on partners. On Monday it unveiled the TDA235E5 and TDA235E0, a new smart power-stage family designed specifically for AI accelerators and vertical power delivery.

Beyond the Server Rack

The diversification stretches well past the data center. Also in early September, Infineon strengthened its cooperation with mPTech, which integrated the company's SECORA wallet technology into the Hammer smartwatch to enable secure NFC payments. The first device to come out of that effort is slated to reach Europe in November, according to the companies.

Further afield, Infineon's radiation-hardened HiRel power devices flew aboard NASA's Nancy Grace Roman Space Telescope, a mission whose success was reported in early September. Taken together, the announcements show the Munich-based semiconductor group reaching beyond its traditional automotive and industrial base into space technology, wearables and AI infrastructure.

A Street Divided

Analysts, though, remain far from agreement. Warburg Research upgraded the stock to "Buy" from "Hold" on Monday while keeping its price target at EUR 84. Berenberg stayed positive as well, reiterating "Buy" with a EUR 100 target on Wednesday and, according to media reports, describing the earlier share-price pullback on Thursday as an attractive entry point. Bernstein confirmed its "Outperform" rating and a EUR 102 target on Tuesday, with both houses pointing to substantial upside from current levels.

Morgan Stanley took the opposite view. On Wednesday it cut its rating to "Equalweight" and trimmed its price target, citing limited near-term upside in the data-center theme. The stock has largely absorbed that downgrade since, adding 0.5% over the week.

The Tape Tells Its Own Story

Friday brought the sharpest move: Infineon shares jumped 4.5% to close at EUR 58.06. Even so, the stock is down 7.9% over the past 30 days, while it has climbed 54% year to date. It trades 5.9% below its 50-day moving average of EUR 61.68 but 7.2% above its 200-day average — a picture of short-term consolidation inside a longer-term uptrend. The gap to the 52-week high of EUR 89.67 remains wide, underscoring just how volatile the paper has been.

One more signal came from the regulatory side: Goldman Sachs reported on September 10 that it had reduced its voting-rights stake in Infineon to 4.31% from 5.31%, after the reporting threshold was first crossed below on September 3.

For investors, the key question is how these partnerships eventually translate into revenue — and on that front, no concrete figures have been disclosed so far.