10 Best German Stocks to Buy According to Analysts

7. Infineon Technologies AG (OTCMKTS:IFNNF)

Infineon Technologies AG (OTCMKTS:IFNNF) is among the best German stocks to buy according to analysts. On March 6, UBS downgraded its rating on Infineon Technologies AG (OTCMKTS:IFNNF) to Neutral from Buy and cut the price target to €45 from €47. For this action, UBS cited limited upside for Infineon’s AI business and a weakening Chinese auto market. Additionally, the firm pointed to Infineon’s delayed margin recovery.

According to UBS, Infineon’s AI revenue projection of €1.5 billion in 2026 and €2.5 billion in 2027 looks more optimistic than the reality. The firm sees the market growing more slowly than the German chipmaker anticipates.

On the China market, UBS sees a deteriorating market. According to the firm, China’s wholesale passenger vehicle volumes dropped 19% YoY and retail sales fell 14% in January 2026. In 2025, Infineon generated about 30% of its total revenue from China. Moreover, China is estimated to have contributed 43% of the company’s automotive revenue. In light of what it sees as a weakening market in China, UBS sees Infineon’s China auto revenue falling 7% in both 2026 and 2027.

On March 5, Infineon announced that it had completed a limited share repurchase program. It said that it bought back four million shares at an average price of €44.43, spending €177.7 million in total. On February 19, Infineon’s board approved a dividend of €0.35 per share based on the 2025 earnings.

The buyback and dividend plans followed the company’s better-than-expected FYQ1 2026 results. For the period ended December 31, Infineon posted revenue of €3.66 billion, exceeding the consensus expectation of €3.62 billion. The company’s Q2 revenue guidance of €3.8 billion is in line with analysts’ expectations.

Infineon Technologies AG (OTCMKTS:IFNNF) is a global chipmaker. The company’s chips are used in power systems, automotives, and other applications. Infineon was previously a unit of Siemens before its spinoff in 1999.