IFNNF - Looking For Semiconductor Upside? Infineon Has Strong Return Potential

2024-04-18 02:43:38 ET

Summary

• Infineon trades at a sub-15x P/E, making it an attractive investment opportunity.
• The company has a competitive position in the semiconductor market, particularly in the automotive and EV sectors.
• Infineon's financials have been improving year-over-year, with double-digit sales growth and increasing margins.

Dear subscribers,

I don't often provide articles on semiconductor companies, and it has, in fact, been some time since I reviewed the former Siemens company Infineon ( IFNNY ). However, I believe the time has come to do exactly that, given that the company trades at a sub-15x P/E. My last article on the company was back in 2022, around 1.5 years ago, and you can find that article here.

This is not a high-yielding business, nor is it ever likely to be. These semi-businesses very rarely are. However, that doesn't mean that this is not investable as a company - and I have a small stake in Infineon. I'm hoping that I will be able to expand it this year and take advantage of what I view as being a multi-year cycle upside for Infineon for the next few years....

For further details see: