Infineon Technologies AGIFNNF -6.63%84 Gross Margin % is 38.74% as of Mar. 2026, which is 1% above its 10-year median of 38.25. GuruFocus rates IFNNF with a GF Score™ of 84/100 and a GF Value™ of $39.03 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,011 Semiconductors companies, Infineon Technologies AG ranks better than 68.45% on this metric.
Infineon Technologies AG (OTCPK:IFNNF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Infineon Technologies AG had a gross margin of 38.74% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Infineon Technologies AG Gross Margin % Related Terms
Infineon Technologies AG Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
IFNNF vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Infineon Technologies AG's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Infineon Technologies AG Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Infineon Technologies AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Infineon Technologies AG's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Infineon Technologies AG (IFNNF) has a Gross Margin % of 38.74% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Infineon Technologies AG and its competitors. This is near median its historical median of 38.25. Over the past decade, Infineon Technologies AG's Gross Margin % has ranged from 32.40 to 45.45. According to the industry distribution chart, Infineon Technologies AG ranks #319 out of 1011 companies in the Semiconductors industry, placing it in the top 31.6%.
Is Infineon Technologies AG's Gross Margin % too high?
Infineon Technologies AG's current Gross Margin % of 38.74% is near median its 10-year median of 38.25. Over the past 10 years, this metric has ranged from a low of 32.40 to a high of 45.45. The Semiconductors industry median Gross Margin % is 29.61. Infineon Technologies AG's value of 38.74% is 30.8% above this industry median. Based on the distribution chart, Infineon Technologies AG ranks #319 out of 1011 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Infineon Technologies AG has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Infineon Technologies AG's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Infineon Technologies AG ranks #319 out of 1011 companies for Gross Margin %. This puts Infineon Technologies AG in the upper half of its industry. The industry median Gross Margin % is 29.61. Infineon Technologies AG's value of 38.74% is 30.8% above this benchmark. Historically, Infineon Technologies AG's own Gross Margin % has ranged from 32.40 to 45.45 over the past decade. While the company's 10-year median is 38.25 vs. the industry median of 29.61, Infineon Technologies AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Infineon Technologies AG's current Gross Margin % of 38.74% is 30.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Infineon Technologies AG and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Infineon Technologies AG's current Gross Margin % is 38.74%, which is near median its own 10-year median of 38.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Infineon Technologies AG stock overvalued right now?
Based on GuruFocus' analysis, Infineon Technologies AG (IFNNF) is currently considered Significantly Overvalued. The stock's GF Value™ is $39.03, compared to a current price of $88.50 — trading 126.7% above its estimated fair value. The current Gross Margin % is 38.74%, which is near median its 10-year median of 38.25 and 30.8% above the Semiconductors industry median of 29.61. Infineon Technologies AG's overall GF Score™ is 84/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Infineon Technologies AG (IFNNF), the current Gross Margin % is 38.74% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Infineon Technologies AG (IFNNF) Overvalued in 2026?
Based on GuruFocus' analysis, Infineon Technologies AG stock appears to be overvalued.
The current stock price of $88.50 is trading 126.7% above its estimated GF Value™ of $39.03.
GuruFocus considers Infineon Technologies AG to be Significantly Overvalued.
Key valuation signals for IFNNF:
Gross Margin %: 38.74% (near median its 10-year median of 38.25)
GF Value™: $39.03 vs. price of $88.50 (126.7% above fair value)
Industry Position: 30.8% above the Semiconductors median (#319 of 1011)
No single metric tells the full story. See the IFNNF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Infineon Technologies headquartered in Munich, was spun off from German industrial conglomerate Siemens in 2000 and today is one of Europe's largest chipmakers. The company is a leader in the automotive semiconductor market with prominent products used in active safety and powertrain content within vehicles. Infineon is also the market leader in power semiconductors used to deliver voltage within a wide variety of electrical systems. The company operates in four segments: automotive, or ATV, green industrial power, or GIP, power and sensor systems, or PSS, and connected secure systems, or CSS.
84GF Score
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