Infineon, STMicroelectronics Poised for Durable Recovery

Dow Jones09-02

0846 GMT - Chip makers Infineon Technologies and STMicroelectronics are set for a durable recovery after years of slow sales due to semiconductor demand for artificial-intelligence data centers, cars and industrial equipment, Citi analysts write in a note to clients. Carmakers that amassed chips at the height of the pandemic have now used up most of their inventories and are once again placing orders to the benefit of Infineon and STMicroelectronics. "While both stocks remain highly correlated to broader semi and AI-related sentiment, we believe these trends should support a longer and more sustainable earnings recovery than reflected in expectations," analysts say. Infineon shares trade 0.4% lower at 55.29 euros, while STMicroelectronics shares are up 1.1% at 42.77 euros.

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