Infineon Technologies AG (OTCMKTS:IFNNY) stock rose 2.92% (As on July 13, 11:16:25 AM UTC-4, Source: Google Finance) after Analysts Jefferies upgraded the company from “underperform” to “hold” and raised its price target to 40 euros from 28 euros. “The next upswing is beginning,” analyst Janardan Menon wrote in a research note on the European semiconductor sector, available Wednesday. Over the next two years, he expects strong earnings growth and a massive re-rating of the shares. On Infineon, STMicro and Melexis, his estimates are below consensus due to inventory revisions, but he said industry strength will not leave.
Meanwhile, the company has announced an update of ModusToolbox 3.1, a comprehensive suite of development tools and embedded run-time assets that provide a development environment. The new update features improved capabilities such as a new dashboard application which acts as a central “getting started” resource with links to key documentation, training modules, video tutorials, and relevant community forums. The dashboard also enables a guided workflow feature for developers creating new embedded projects for Integrated Development Environments (IDEs), like Microsoft Visual Studio Code, IAR Embedded Workbench, Arm® MDK (µVision IDE), or Eclipse IDE as part of ModusToolbox.
Further, the company has announced that Infineon has acquired the Stockholm-based startup Imagimob AB, a leading platform provider for Machine Learning solutions for edge devices. With this acquisition Infineon advances its position to offer a world-class Machine Learning (ML) solution and significantly complements its AI offerings. Imagimob provides an end-to-end machine learning toolchain that is highly flexible and easy to use with a strong focus on delivering production-grade ML-models. Infineon is acquiring 100% of the company’s shares. Both parties have agreed not to disclose the amount of the transaction.
Additionally, IFNNY and Semikron Danfoss have signed a multi-year volume agreement for the supply of silicon-based electromobility chips. Infineon will supply chipsets consisting of IGBTs and diodes to Semikron Danfoss. These chips are mainly used in power modules for inverters, which are used for the main drive in electric vehicles.
For fiscal 2023, the company expects revenue to be €16.2bn +/-€300m, adjusted gross margin to be 47%, adjusted FCF to be ~€1.8bn and investments to be €3.0bn. GaN expected to be the preferred technology in multiple core applications by 2030. Automotive semiconductor market expected to continue its growth journey. Semiconductor shortage expected to ease further leading to more balanced demand/supply condition.