Analyst Note
| Brian Colello, CPA |Narrow-moat Infineon Technologies reported solid fiscal second-quarter results and provided investors with a relatively upbeat forecast for the rest of fiscal 2022 (ending September) as it still foresees robust chip demand, more than offsetting macroeconomic concerns such as COVID-19 restrictions in China and the Russia-Ukraine war. We maintain our EUR 40 fair value estimate but lower our fair value estimate for the U.S. shares to $42 from $46 because of currency fluctuations. We see upside in the shares, thanks to Infineon's position as an automotive chip leader and the strong secular trend of rising chip content per car.