Infineon's Power-Chip Push Meets a Cautious Tape as Oddo BHF Eyes 80 Euros

Infineon launched two power modules for AI accelerators and a silicon carbide supply deal with China's Maitian Energy, as shares slipped 2.6%.

Infineon used a single Wednesday to make its case on two fronts, unveiling a pair of two-phase power modules built for AI accelerators and server processors while simultaneously deepening its reach into residential solar storage through a supply deal with Chinese provider Maitian Energy.

The new TDA235E5 and TDA235E0 stages pack the company's own OptiMOS-6 transistors alongside driver circuitry onto a six-by-six-millimeter footprint. The design targets power density above 2 amperes per square millimeter and handles peak currents of up to 300 amperes — precisely the kind of compact, on-package power delivery that becomes critical as AI data centers soak up ever more electricity.

Silicon Carbide Gains a Foothold in Storage

Alongside the module launch, the Munich-based group disclosed a supply contract for silicon carbide semiconductors. According to the company, these components cut switching losses by 70 percent versus earlier solutions. In a joint test with HTW Berlin, a partner's hybrid system in the 10-kilowatt class notched a system performance index of 97.0 percent.

The announcements land against a shifting backdrop in automotive chips, long Infineon's core franchise. Citing industry estimates, Handelsblatt reports the global market for automotive semiconductors will expand from $77 billion in 2025 to $160 billion in 2031. Infineon remains the world's largest supplier by revenue in that segment, yet it does not offer highly integrated central compute platforms. For infotainment and highly automated driving, manufacturers including BMW and Mercedes-Benz are therefore turning primarily to specialized processors from the likes of Qualcomm and Nvidia for upcoming vehicle generations.

A Portfolio Pruned for Focus

That gap helps explain a broader realignment. Roughly a week ago, Infineon shed peripheral operations, selling its NOR flash and F-RAM memory business to Winbond for $1.12 billion. Media reports frame the move as a deliberate narrowing toward power semiconductors and energy-efficient solutions for AI data centers.

Reuters initially noted a muted market reaction to the sale, but sentiment turned quickly. The disposal signals that management is resisting the temptation to keep carrying low-margin memory technologies, freeing capital for the areas where data centers face their steepest hurdle — sheer heat generation and ballooning power consumption.

Analysts have taken notice. Last Friday, Oddo BHF upgraded the stock from "Neutral" to "Outperform" with an 80-euro price target. UBS had already reaffirmed a neutral rating and a 64-euro target on September 14. The stock has climbed 60 percent since the start of the year, a recovery that shows how readily the market rewards conviction on restructuring — and raises the bar for operating performance.

Product News, Muted Price Action

Not every signal pointed upward. On Wednesday, investors greeted the product offensive coolly: Infineon shares slipped 2.6 percent to 58.91 euros, leaving the stock just below its 50-day moving average of 59.25 euros. The prior day had been brighter, with the shares adding 3.5 percent to 60.50 euros in regular trading, a move driven largely by a friendly sector environment rather than company-specific news.

Consensus estimates put full-year earnings at 1.75 euros per share. The real test arrives on November 10, 2026, when Infineon reports next numbers — the moment when portfolio cleanup must give way to demonstrable organic growth in the segments that remain.