NXPI - Infineon Shares Already Pricing In Some Correction To Order And Margin Trends

• Infineon shares have already corrected more than 40% from their 52-week high, but it's worth remembering that this cycle went further than prior cycles in terms of multiple expansions.
• This chip company offers very attractive leverage to high-value power discrete semiconductors, as well as other categories like MCUs, sensors, and wireless connectivity.
• The growth in xEV production and the increasing adoption of higher-level ADAS and other auto subsystems will be key drivers, but industrial automation, IoT, and renewable power are significant.
• Infineon looks undervalued on long-term revenue growth in the high single-digits and double-digit FCF growth, but there could still be some downside risk as a cyclical correction materializes in the numbers.

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