SAP offers cheaper entry, Infineon offers greater dynamism. Which stock is currently more convincing in comparison?
• SAP remains under pressure from a chart perspective despite solid quarterly figures
• Infineon is benefiting from the AI hardware boom and is raising its annual forecast
• In a risk-reward comparison, Infineon currently appears somewhat more convincing
The ongoing AI boom is shaking up the international stock markets, including in Germany. Two tech heavyweights in particular are receiving a lot of attention: SAP and Infineon. Both companies, in their own way, could be linked to major technology trends in the coming years. However, the initial situation on the stock market is currently very different. While SAP is still fighting for new trust after the setback in the spring, the reassessment at Infineon is already underway. In a direct comparison, one company is therefore slightly ahead.
Below the 200-day line: Is SAP recovering from the spring setback?
In the spring, increasing concerns about disruptive AI applications shook the software sector – and so did Walldorf’s shares. SAP has suffered a lot since the beginning of the year and, with a loss of almost a fifth, is still one of the biggest losers in the DAX. Although the picture in the software sector is gradually brightening again, the much-noticed 200-day line as a technical benchmark is still a long way away for the share price.
Operationally, the first quarter of 2026 still provided arguments for stabilization. SAP increased total sales by six percent to 9.55 billion euros. The cloud business grew by a strong 27 percent after adjusting for currency effects, and the current cloud order backlog climbed to 21.9 billion euros. The group also appeared more robust in terms of earnings: the operating result according to IFRS improved by 17 percent to 2.74 billion euros.
Analysts therefore see the foundation as still intact. Deutsche Bank Research confirmed the rating of “Buy” with a price target of 200 euros and rated SAP’s AI strategy after the Sapphire in-house exhibition as a clear step in the right direction. The comparatively low barriers to adaptation for customers were also positively highlighted.
Unbridled semiconductor rally: Is the euphoria driving Infineon even further?
Infineon shares have been significantly stronger since the beginning of the year. At the end of May, the Munich-based company’s shares even reached a historic high from the dot-com era. The central driver: AI data centers and the increasing global demand for hardware.
This is also reflected in the company’s figures: In the second quarter of the 2026 financial year, sales in the Power & Sensor Systems segment increased by eight percent to 1.26 billion euros compared to the previous quarter. The segment result improved by 26 percent to 257 million euros, according to a company press release. For the year as a whole, Infineon now expects significant sales growth compared to the previous year. The segment earnings margin is expected to reach around 20 percent, having previously only been targeted at a value in the high tens percent range.
The strong run of the share price and the growing demand for Infineon’s power supply solutions for data centers did not go unnoticed by analysts. Jefferies recently raised its price target from 75 to 96 euros and, in addition to higher capacities and rising prices in the area of power management solutions for AI, also pointed to a strengthening upswing in the automotive and industrial business.
SAP versus Infineon: This is what the rating reveals
At first glance, both stocks seem ambitiously valued: SAP has a P/E ratio of 33.92, Infineon 43.32. However, the higher multiplier at Infineon is no coincidence. Margins are increasing with sales, the annual forecast has just been raised, and the analyst consensus is becoming increasingly optimistic. Anyone who wants to reflect the AI hardware boom more directly in their depot will currently find the clearer lever in Infineon.
SAP, on the other hand, offers cheaper entry and solid cloud numbers, but continues to suffer from the discount that the market is giving for the ongoing transformation. Both companies also have their own stress factors: At Infineon, the high-voltage segment for electric vehicles is putting pressure on the automotive margin; at SAP, cloud growth is expected to slow down as planned in the second quarter. In addition, the boardrooms of both companies point to ongoing uncertainties caused by a complex macroeconomic and geopolitical environment.
These stocks currently offer the better risk-reward ratio
In a direct comparison, there is no clear either/or, but there is a noticeable difference in the initial situation. SAP scores with predictable cloud growth, a lower valuation and possible recovery potential after the share price decline. However, the catalyst that could permanently eliminate the valuation discount caused by the ongoing transformation is still missing.
Infineon, on the other hand, currently appears more dynamic. The raised full-year forecast, stronger margins and analyst tailwinds suggest a clearer near-term profile. Although the stock is valued higher after the rally and is therefore more susceptible to setbacks, the group is currently providing the more convincing operational arguments.
The bottom line is that Infineon is slightly ahead when it comes to the current risk-reward ratio. The next reliable data point for SAP follows with the figures for the second quarter, and for Infineon with the earnings report for the third quarter of the 2026 financial year on August 5, 2026.
Benedict Kurschat, editorial team at finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
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