Infineon rises as its lowered FY outlook still in line with expectations

Shares in Infineon IFXGn.DE rise around 3% despite the German chipmaker cutting its FY guidance, with analysts saying that lower forecast still comes within expectations

Infineon now expects FY revenue to slightly decline, having previously forecast sales to be stable or slightly up in 2025

J.P.Morgan says if the market assumes Infineon's FY revenue decline to be 2%, then the company's new guidance is essentially in line with its previous guidance

"Thus, despite the headline cut, we see this guidance as essentially in line," the broker says

"The reduction in tariffs unlike peers does de-risk the stock somewhat, but in reality the impact of tariffs is unknown and there could be customer effects and beyond that second-order impacts," it says

The stock is at the top of Germany's blue-chip index .GDAXI

($1 = 0.8860 euros)