The Chip Company the AI Crowd Isn't Watching Yet

**Vincent** (0:00)
The kind of core repricing of the name hasn't happened yet.

**LG Doucet** (0:05)
What's up, everybody? It's LG Doucet here, and welcome to Milk Road AI, the daily AI show that really wants to top blast these stocks, but knows that they'll dump as soon as we do. And until then, it's obviously up only. Today is June 19th, 2026, recording on June 18th. Okay, last week, we debuted a new format of podcast where every Friday, I sit down with Vincent, our AI analyst, to deep dive on a specific company in the bottleneck trade. This week, we are focusing on Infineon, a European semiconductor player that's already up 2X this year, but has strong revenue in the current short-term and long-term, as they are major suppliers for both the data center build out and robotics. Vincent is already up 25 percent on this one, having called it about six weeks ago, and he thinks it still has legs. Today, he'll explain why, and if you want to see his full portfolio and what he's buying next, it's all available for just a dollar in Milk Road Pro at the link below. Today's episode is brought to you by Nexo, Earn Interest, Borrow and Trade Crypto, and Bitget Stocks 2 with Real Liquidity and Real Tividens. Vincent, last week's episode was an absolute banger. People got really excited about CUNITY, about learning about it, about us calling it potentially the next Micron. Maybe, maybe not, although Micron is absolutely ripping today.
And we're back for another episode to look at another potential bang.
I'm assuming this is also a bottleneck company, but Vincent, I will let you introduce what we were talking about today.

**Vincent** (1:26)
Sure. So today we're talking about Infineon. It's a name. It's a second layer AI trade, similar to what CUNYtE Electronics was last week. But what they're actually selling is the power, control, sensing, and security chips that you need in data centers, in batteries, but also in physical AI products like humanoids.
And I think there's some core trends behind it, like 800 volt DC, for instance, which we'll talk about later, that really gives this company a nice tailwind for its products. And yeah, that's why I want to cover it this week.

**LG Doucet** (2:10)
Okay. So why, I mean, I have a million questions for you. In the last week, you took us through like so many different parts about CUNYtE.
What, like, before we go deeper into it, give me, like, the 30-second, like, why you chose this and why this landed on your radar, amongst all the companies that we could look at right now.

**Vincent** (2:27)
Yeah.
So this company is exposed end-to-end. So from the grid to the batteries, to the data centers, to downstream physical AI products like humanoids. They're selling chips, maybe power semiconductors, but also sensors into those areas. And all of those areas are growing like crazy. And that's why I'm bullish on the name. Okay. Okay.

**LG Doucet** (2:55)
So and that's across all industries, because you have here, you have even automotive, right? So they are selling things that would potentially be in like FSD, power systems, I'm assuming is data centers, and then edge system, which it looks like you've got like a robot arm there. So I'm assuming that's robotics. So this is literally spanning all potential industries of like AI and tech really.

**Vincent** (3:16)
Yeah, yeah, exactly. So it's a really broad name. And I will have some slides on that as well. But this is really a snapshot on what Infineon is today.
And it also tells you it's a company that is currently selling or getting 50 percent of its revenue from the legacy automotive, mainly European industry, right? That's also one of the core risk factors actually, which I will talk about later as well.
Because that industry is not really working well, right? But then they're having power systems and edge systems. And that's accumulated or taken together also 50 percent of the company. And that's kind of the AI and where I'm really focused on. So power systems are all the power semiconductors, modules, drivers that they're selling A into the grid, B into the batteries, but then C, and that's the most important thing, directly into the racks. And I have some slides also on why the demand for those power semiconductors are going to explode, especially in that power systems bracket. And then finally, edge systems, that's kind of the outlook, right? That's all about humanoid robots, but also semi-autonomous robots, where they're also selling sensors, connectivity chips, security chips in there. All right. So it's really a whole chips company that is not selling the brains like NVIDIA does with the GPUs. It's selling all the other chips that you need to build out this AI infrastructure that we're all looking for.