Core Viewpoint - Infineon plans to invest an additional 500 million euros in manufacturing capacity this fiscal year, anticipating significant growth in revenue from its AI business, which is expected to increase by two-thirds by 2027 [1][2]. Investment Plans - The company has raised its planned investments for the 2026 fiscal year to 2.7 billion euros, focusing primarily on chips for data centers [1]. Revenue Expectations - Infineon expects its AI business revenue to reach 1.5 billion euros in the current year and 2.5 billion euros in the following year [2]. - The group reported first-quarter revenue of 3.66 billion euros, slightly exceeding analyst expectations of 3.62 billion euros [3]. Profitability Metrics - Infineon's segment result margin for the fiscal first quarter was 17.9%, surpassing expectations [3]. - Revenue from the power and sensor systems segment decreased by 3% to 1.17 billion euros compared to the previous quarter, but is projected to grow faster than the group average due to data center demand [4].

Core Viewpoint - Global technology shares experienced a rally as investors shifted back to AI-linked stocks following NVIDIA's strong earnings report, despite ongoing concerns about overvaluation in the AI sector [1][2]. Company Performance - NVIDIA reported $57 billion in revenue for the quarter ending in October, a 62% increase year-over-year, driven by a 66% surge in sales from its AI data center division, which exceeded $51 billion [3][4]. - The company's earnings per share (EPS) for Q3 was $1.30, surpassing the Zacks Consensus Estimate of $1.24, while revenues exceeded estimates by 4.14% [4]. - NVIDIA's data center business generated $51.2 billion, outperforming the Bloomberg consensus estimate of $49.3 billion [4]. - The company provided an optimistic fourth-quarter revenue guidance of $65 billion, beating the Zacks Consensus Estimate of $60.30 billion, leading to a 5% increase in shares during premarket trading [5]. Market Reaction - The positive sentiment from NVIDIA's results extended to global chipmakers, with Dutch semiconductor companies BESI and ASMI rising over 3% and 2%, respectively, and Asian companies like Samsung Electronics and Hon Hai Precision Industry also seeing gains [6]. - U.S. tech stocks rebounded in pre-market trading, with AMD shares up about 5%, Arm nearly 4%, Marvell Technology adding 3.7%, and Broadcom climbing 3% [7]. Industry Concerns - There are concerns regarding the concentration of major AI players, as highlighted by Karen McCormick, who noted the potential vulnerability of the market if an AI bubble bursts, despite the strong balance sheets of these firms [8][9]. - The interconnected nature of AI companies, particularly with NVIDIA and Microsoft planning significant investments in Anthropic, raises caution about market stability [8][9]. Investment Opportunities - Amidst the mixed scenario of growth and risks, investing in undervalued tech-based exchange-traded funds (ETFs) is suggested as a viable option, with several ETFs showing lower valuations compared to the broader tech ETF iShares U.S. Technology ETF (IYW) [10]. - Specific undervalued ETFs include Invesco Next Gen Connectivity ETF (P/E: 20.98X), Invesco S&P 500 Equal Weight Technology ETF (P/E: 22.74X), and others with P/E ratios ranging from 22.99X to 23.45X [11][12].