Infineon
Note: This is a daily stock update and the information stands true as of 08/04/25, 09:00 CET.
Company Update:
This is indeed an interesting acquisition and quite complimentary to its current offering (even though 10x sales is quite expensive). Infineon has dominating position in the automotive industry, notably in China where its market share is on the rise. And the chip content per car will keep increasing over the next few years so the long term picture is quite rosy over the long run. However, the stocks isn’t especially cheap despite the recent fall in share price as the stock trades on a PE25 (Sept) of 18.7x and 12.6x for 2026. Considering the very weak environment in automotive and despite the 45% upside, our expert would stay on the sideline for the time being. He will wait until we see an actual rise in automotive production to jump back in Infineon. Yet one to keep on your radar, we suggest a call with our analyst on the sector if you want to know more.
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Company Update:
Infineon Technologies is acquiring Marvell’s Automotive Ethernet business for $2.5 billion, a strategic move aimed at reinforcing its position in automotive microcontrollers and expanding its capabilities for software-defined vehicles (SDVs).
The acquisition includes Marvell’s Brightlane™ Ethernet portfolio, a high-speed in-vehicle networking solution.
The Brightlane line is expected to generate $225–$250 million in revenue in 2025 with a 60% gross margin.
We see this as a positive for Infineon as it will help Infineon provide comprehensive one-stop SDV offerings and our analyst suggest it is time to jump in Infineon right away and own it for the long term business improvement.
Expert Opinion: This is indeed an interesting acquisition and quite complimentary to its current offering (even though 10x sales is quite expensive). Infineon has dominating position in the automotive industry, notably in China where its market share is on the rise. And the chip content per car will keep increasing over the next few years so the long term picture is quite rosy over the long run. However, the stocks isn’t especially cheap despite the recent fall in share price as the stock trades on a PE25 (Sept) of 18.7x and 12.6x for 2026. Considering the very weak environment in automotive and despite the 45% upside, our expert would stay on the sideline for the time being. He will wait until we see an actual rise in automotive production to jump back in Infineon. Yet one to keep on your radar, we suggest a call with our analyst on the sector if you want to know more.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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