BofA Ups Infineon Technologies Price Objective on Expected AI Revenue Boost

01:27 AM EST, 01/07/2026 (MT Newswires) -- BofA Global Research lifted its price objective for Infineon Technologies (IFX.F) to 46 euros from 42 euros, with a buy rating, citing the increasing share of artificial intelligence in the German semiconductor manufacturer's revenue mix. "We believe Infineon is well positioned for further multiple expansion in 2026E, supported by accelerating AI-related revenue growth and a strengthening strategic narrative," analysts said Tuesday. "While the stock saw only a modest rerating in 2025, we expect this trend to continue as AI-Server revenues are forecast to grow +107% YoY, increasing their contribution to approximately 10% of group sales. This shiſt is significant because it moves AI from a peripheral driver to a material component of IFX's revenue mix." As such, the research firm projects a 9% sales compound annual growth rate for Infineon from 2024 to 2027. The stock is also BofA's top pick in diversified semiconductors.