Piotrekswat/iStock via Getty Images I last covered Infineon (OTCQX:IFNNY) (OTCQX:IFNNF) in June; at the time, I put out a Buy rating based on fundamental undervaluation. However, the stock has fallen around 20% in price since then. My investment strategy is now evolving to incorporate more elements of market psychology, and whilst I do emphasize fundamentals as the foundation of valuation analysis and Buy ratings, I believe that without sentiment analysis, one is exposed to high levels of potentially unnece ...

l 100 Print r Monty Rakusen Investment action I recommended a buy rating for Infineon Technologies AG (OTCQX:IFNNY) when I wrote about it last December, as I believed the underlying demand was robust and that the valuation should be well-supported by these demand tailwinds. Based on my current outlook and analysis, I continue to recommend a buy rating. My key update to my thesis is that I believe the tough part of this down cycle is over, and IFNNY should see growth over the coming quarters, backed by stron ...

Infineon Technologies AG (OTCQX:IFNNY) Q3 2024 Results Conference Call August 5, 2024 3:30 AM ET Company Participants Alexander Foltin - Head of Investor Relations Jochen Hanebeck - CEO, Labor Director & Member of Management Board Sven Schneider - CFO & Member of Management Board Andreas Urschitz - Chief Marketing Officer & Member of Management Board Conference Call Participants Alexander Duval - Goldman Sachs Joshua Buchalter - TD Cowen Andrew Gardiner - Citi Stephane Houri - ODDO BHF Francois Bouvignies - ...

Sinenkiy/iStock via Getty Images I last covered Infineon (OTCQX:IFNNY) (OTCQX:IFNNF) in March; I allocated a Buy rating at the time, and since then, the stock has gained 7.90% in price. At the time, I estimated that the stock was significantly undervalued based on my discounted earnings model. However, in this analysis, I am going to assess the company's valuation more acutely by looking in detail at its cash flows, in particular, how its high capex affects its valuation when forecasting growth in free cash ...

J Studios/DigitalVision via Getty Images This is the first time I have covered ON Semiconductor (NASDAQ:ON), and I believe it's a very compelling business to invest in. The company is delivering high levels of earnings growth, contributing to an exceptional valuation based on my discounted earnings analysis. However, its free cash flow situation is less promising, primarily a result of much higher levels of capital expenditure, making its intrinsic value look less appealing based on my discounted cash flow ...

There are other promising semiconductor stocks than just Nvidia. Learn about these solid candidates for your portfolio -- including a powerful ETF. If you're eager to invest in the semiconductor industry, you have plenty of reason. Semiconductors are in myriad things we use every day -- including our smartphones, cars, and even toothbrushes. Plus, the industry is expected to grow at a solid clip in the years to come. Estimates differ, of course, but per the folks at Allied Market Research, the semiconductor ...

Analyst Call Q2 FY24 Revenues and Segment Result USD exchange rate Segment Result Revenues Segment Result Margin 1 See notes for definition Order backlog1 [EUR bn] Automotive semiconductors (2023 total market: $69,200n; +16.5% y-y) ‒ Continuing #1 position in power semiconductors based on industry's broadest product portfolio 2024-05-07 Copyright © Infineon Technologies AG 2024. All rights reserved. 4 1 Infineon Technologies AG Investor Relations Q2 FY23 [EUR m] 1,180 1,067 1,044 831 28.6% 26.1% 25.2% 22.4% ...

Financial Data and Key Metrics - Group revenues for Q2 2024 amounted to €3.632 billion, in line with expectations, with a segment result of €700 million, yielding a segment result margin of 19.5% [49] - Adjusted gross margin declined to 41.1% in Q2 2024 from 44.9% in the previous quarter, reflecting lower revenues, pricing adjustments, and reduced government funding receipts [72] - Free cash flow from continuing operations showed a small positive amount of €82 million, compared to a negative €1.6 billion in the previous quarter, which included acquisition costs and bonus payouts [40] - Inventory days outstanding (DIO) decreased from 185 days to 178 days in Q2 2024, with expectations of further reductions by the end of the fiscal year [40] - The company expects annual idle costs to exceed €800 million, up from the previously assumed €700 million, with 60% of these costs expected in the second half of the fiscal year [57] Business Line Data and Key Metrics - Automotive division revenues in Q2 2024 were €2.078 billion, stable compared to the previous quarter, with a segment result margin of 24.6%, down from 27.1% in Q1 2024 [17] - Power and Sensor Systems (PSS) segment revenues declined by 7% sequentially to €730 million, with a segment result margin of 9%, down from 12.9% in the previous quarter [69] - Green Industrial Power (GIP) segment revenues decreased by 4% to €469 million, with a segment result margin of 19%, down from 26.7% in the previous quarter [136] - Connected Secure Systems (CSS) segment revenues increased slightly to €371 million, with a segment result margin of 11.3% [53] Market Data and Key Metrics - The company expects global car production to remain stable at around 90 million units in 2024, with slower EV adoption in Western markets but continued growth in China, where NEV sales penetration reached 39% in March 2024 [50] - The photovoltaic market is expected to grow by 24% in 2024, with annual installations reaching 500 gigawatts, while wind power installations are expected to grow by 18% to over 100 gigawatts [51] - The AI server market is a significant growth opportunity, with the company expecting mid-double-digit growth rates, driven by the transition to vertical backside-mounted power supply, which could increase the bill of material by a factor of three to five [47] Company Strategy and Industry Competition - The company is focusing on structural growth opportunities in electromobility, ADAS, renewable energy, AI data centers, and IoT, supported by its Step Up program aimed at enhancing competitiveness and profitability [16][59] - Infineon is well-positioned in the AI server market, with design wins from three major AI processor companies and hyperscale data center players, leveraging its expertise in digital power control, silicon carbide, and gallium nitride technologies [47][61] - The company is adjusting its silicon carbide revenue growth expectations to 20% for FY 2024, down from previous estimates, due to cautious demand in industrial and automotive markets [38] Management Commentary on Operating Environment and Future Outlook - The company acknowledges a challenging macroeconomic and geopolitical environment, with a cyclical correction affecting automotive and industrial applications, while consumer-related segments are bottoming out [56] - Management expects a gradual recovery in the second half of 2024, with green shoots appearing in areas like AI servers and smartphones, but visibility into the timing and magnitude of the rebound remains limited [56] - The company has de-risked its guidance for FY 2024, lowering revenue expectations to €15.1 billion, reflecting weaker dynamics in automotive, industrial markets, and tempered recovery in consumer computing and communications [106] Other Important Information - The company launched the Xiaomi SU7 family, providing CoolSiC modules and over 60 components, including MCUs, marking a significant design win in the automotive sector [31] - Infineon is progressing with its silicon carbide capacity ramp-up at its Kulim site, with plans to transition to 200 mm wafers, positioning the company for mid- and long-term growth [38] - The Step Up program is expected to deliver high-triple-digit million euro annual impacts on segment results, with benefits starting to materialize in FY 2025 and full effects visible by the first half of FY 2027 [59] Summary of Q&A Session Question: Confidence in the last guidance cut for the year [5] - Management confirmed that the latest guidance cut is expected to be the last for FY 2024 [5] Question: Inventory levels and shipping to end demand [6] - Inventory levels vary by market, with excess inventory in photovoltaic and classical automotive, while microcontroller shipments for automotive are aligned with end demand [6] Question: Order trajectory and FY 2025 outlook [8] - The company has seen sideways movement in orders and does not provide specific guidance for FY 2025, but expects an industry upswing following the current downturn [114] Question: Step Up program and its impact [9] - The Step Up program aims for high-triple-digit million euro annual impacts, with benefits starting in FY 2025 and full effects by FY 2027 [9] Question: Strategic inventories and idle costs [10] - Strategic inventories are primarily for manufacturing footprint optimization and geopolitical risk mitigation, with idle costs expected to peak in Q3 2024 [11][63] Question: MCU business and AI server design wins [12] - The MCU business grew over 60% last year, with potential for cost reduction through Chinese manufacturing, while AI server design wins are based on advanced silicon MOSFETs [12][20] Question: Silicon carbide market position [19] - The company is confident in its silicon carbide market position, with strong customer interest and plans to ramp up capacity at its Kulim site [38] Question: AI server market and vertical power delivery [26] - Infineon has a strong position in vertical power delivery for AI servers, with design wins from major hyperscalers and AI processor makers [26][61] Question: Automotive market dynamics and MCU sustainability [62] - The company expects low-to-mid single-digit growth in automotive for FY 2024, driven by MCU strength and growth in China, with MCU market share gains seen as sustainable [62][90] Question: Silicon carbide growth and capacity adjustments [83] - Silicon carbide growth expectations have been adjusted to 20% for FY 2024, with reductions more pronounced in the industrial sector, and capacity adjustments are being made to align with demand [110] Question: Green shoots and inventory restocking [118] - The company has seen green shoots in smartphone and AI server demand, with rush orders increasing, but inventory restocking behavior between OEMs and Tier 1s remains unclear [118] Question: Competitors in vertical power delivery [116] - Infineon sees no direct competitors in vertical power delivery for high-power GPU usage in the cloud, given its unique capabilities in wide bandgap materials, digital power control, and module technology [120]

Michael Vi/iStock Editorial via Getty Images Dear subscribers, I don't often provide articles on semiconductor companies, and it has, in fact, been some time since I reviewed the former Siemens company Infineon (OTCQX:IFNNY). However, I believe the time has come to do exactly that, given that the company trades at a sub-15x P/E. My last article on the company was back in 2022, around 1.5 years ago, and you can find that article here. This is not a high-yielding business, nor is it ever likely to be. The ...

Visiongain has published a new report entitled Automotive Electronics Market Report 2024-2034: Forecasts by Sales Channel (Original Equipment Manufacturer (OEM), Aftermarket), by Vehicle Type (Passenger Cars, Commercial Vehicles, Electric Vehicles, Hybrid Vehicles), by Component Type (Electronic Control Units (ECUs), Sensors & Actuators, Microcontrollers, Displays & Connectivity Solutions, Other), by Application (Advanced Driver Assistance Systems (ADAS), Infotainment Systems, Powertrain Electronics, Safety ...