Oddo BHF Turns Bullish on Infineon as Dresden Ramp-Up and AI Power Chips Take Center Stage
Published on 09/21/2026 at 07:50 | Editorial boerse-global.de
Infineon shares finished Friday's session at EUR 55.90, up 2.4%, as a brighter mood across the semiconductor sector combined with a fresh analyst endorsement to lift the Munich-based chipmaker. The advance came after Nvidia chief executive Jensen Huang offered upbeat remarks on global chip demand through 2027, a message that rippled through European semiconductor names and bolstered appetite for the sector's equities.
Analysts added their own tailwind. Oddo BHF raised its rating on the DAX-listed group from "Neutral" to "Outperform" last Friday, attaching a price target of EUR 80. The upgrade landed alongside a wave of constructive commentary from research houses, which market watchers read as a sign that sentiment on European chip stocks is gradually recovering after a stretch of uncertainty.
Dresden at the Heart of the Capacity Story
Beyond the day-to-day trading mood, Infineon is pressing ahead with a build-out of its manufacturing footprint, with the Dresden site anchoring its medium-term plans. Management has set concrete utilization targets for the location, a detail that media coverage flagged as a meaningful signal for how the company is valued. Ramping new fabrication lines on schedule would give the group more room to respond to demand surges and to capture economies of scale — and in the semiconductor industry, factory loading is treated by investors as a key gauge of where margins are headed over the medium term.
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The production strategy is being paired with fresh work in high-performance components. Infineon unveiled new semiconductor building blocks last Friday, presenting a power benchmark for AI accelerators and vertical power delivery using two-phase smart power stages rated at 2 A/mm². These parts are designed chiefly to optimize power supply for complex computing clusters. As energy efficiency and compact form factors become ever more critical in demanding artificial-intelligence applications, management is aiming to cement its standing in components for modern server architectures.
A $1.12 Billion Exit From Memory
Running parallel to those efforts is a reshaping of the product lineup. On Wednesday, Infineon announced a binding agreement to sell its NOR flash and F-RAM memory business to Taiwan's Winbond Electronics for USD 1.12 billion, payable entirely in cash. According to a Handelsblatt report, roughly 350 employees across ten countries will move to Winbond as part of the transaction. The divestment strips out an estimated EUR 350 million in annual revenue.
The deal has yet to close. Completion is subject to the customary approval of the relevant authorities, and Infineon expects the transaction to be finalized in the second half of 2027. By shedding the unit, the company sharpens its profile and concentrates resources more tightly on profitable core operations and future-facing fields.
Momentum With a Caveat
Confidence has been the dominant tone in the stock since these strategic moves began to take shape. The shares have climbed 48% since the start of the year, though they remain below their annual highs. Whether the portfolio clean-up translates into durable margin gains will only become clear once the Winbond sale closes, as anticipated in 2027 — and whether Dresden stays on schedule and the new product generations find their footing in the market will shape the next leg of the story.
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