Infineon Downgraded to 'Equal-weight' by Morgan Stanley

Morgan Stanley downgraded Infineon Technologies AG to ‘Equal-weight’ from a previous recommendation, according to an analyst note issued September 8, 2026. The move reflects a shift toward selectivity within the semiconductor industry.

The downgrade occurred as the firm anticipates a peak in the DRAM market and increasing valuation discrepancies across the sector. While remaining optimistic about the broader semiconductor market driven by artificial intelligence, Morgan Stanley analysts Lee Simpson and Nigel van Putten see limited near-term upside for Infineon’s market expectations. They acknowledge the structural opportunity presented by chips for AI data centers but have moved to the sidelines.

Despite the downgrade, Morgan Stanley lowered its price target for Infineon to 65 euros, a level still above the current Xetra trading price, indicating they do not foresee substantial downside risk. The report also upgraded Synopsys to ‘Overweight’ citing its role in design automation for companies like Nvidia. ASML and BE Semiconductor had their price targets reduced while maintaining optimistic ratings.

Infineon shares declined as much as 2.5 percent in early trading following the announcement. The analysts suggest the current market cycle favors a more selective approach to semiconductor investments.