Infineon Looking At Major Drivers Across The Next Decade

Infineon (OTCQX:IFNNY) shares have done okay since my last update, beating its peer group slightly, but underperforming more recently on worries around the company’s elevated exposure to autos (Infineon is one of the most auto-exposed semis that I follow). On balance, though, nothing much has really changed – Infineon remains a strong, well-diversified chip company with meaningful positions in power, MCUs, and sensors, and good leverage to trends like auto electrification, advanced ADAS, industrial automation, and IoT.

Valuation is, I believe, in the “okay to good” range. STMicro (STM) looks a little cheaper, Texas Instruments (TXN) and NXP Semiconductors (NXPI) look more expensive, but I wouldn’t call the assumptions supporting Infineon’s valuation conservative, and I would note that Infineon’s spot on the top of multiple market share charts makes it a target for companies like STMicro and ON Semi (ON) looking to grow at its expense.

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Infineon Looking At Major Drivers Across The Next Decade