Infineon Technologies AG shares fell more than 2% during early trading on Tuesday. Morgan Stanley downgraded the semiconductor manufacturer to Equal Weight from Overweight. The investment bank lowered its price target for the stock from €81 to €65.
Analysts adopted a more selective stance on the broader semiconductor sector. While long-term opportunities in AI data centers remain, Morgan Stanley sees limited near-term catalysts for Infineon.
The bank expressed concern that market expectations for the Power and Sensor Systems division are too high. Analysts noted a lack of clear upside drivers for the company in the near future.