Infineon
Note: This is a daily stock update and the information stands true as of 27/06/25, 09:00 CET.
Company Update:
Xiaomi launched its new car YU7 which is directly competing with Tesla Model Y. The base model of the YU7 starts at 253,500 yuan (approx. $35,364), roughly $1,400 cheaper than the Model Y in China but offers a better autonomy. The launch was very successful with the company receiving 200k orders in the first three minutes.
The momentum is definitely improving for Infineon and that Xiaomi news is another step in the right direction. While valuation may look unappealing at first (PE25 (sept) of 26.5x), please bear in mind that this is a high fixed cost business and the improvement in topline will have a significant impact on the bottom line. Our PE26 (sept) decreases to 17.7x and to 13.6x for 2027 which is more palatable.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
Xiaomi launched its new car YU7 which is directly competing with Tesla Model Y. The base model of the YU7 starts at 253,500 yuan (approx. $35,364), roughly $1,400 cheaper than the Model Y in China but offers a better autonomy. The launch was very successful with the company receiving 200k orders in the first three minutes.
We believe this is very good for Infineon, which is a key partner for Xiaomi as it supplies more than 60 different components including power modules, Microcontrollers, ADAS, etc., leading to a very high semiconductor content per vehicle.
Infineon remains our top pick in the semiconductor segment and we see long term significant improvement with expected market share gain, triggering an improvement in profitability.
Expert Opinion: The momentum is definitely improving for Infineon and that Xiaomi news is another step in the right direction. While valuation may look unappealing at first (PE25 (sept) of 26.5x), please bear in mind that this is a high fixed cost business and the improvement in topline will have a significant impact on the bottom line. Our PE26 (sept) decreases to 17.7x and to 13.6x for 2027 which is more palatable.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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Alphavalue Morning Market Tip
Downgrading our EPS on weaker sales momentum - Rating cut to ADD vs BUY.