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June 10th, 2024 | 07:00 CEST

Infineon, MGI - Media and Games Invest, Palantir - These 3 shares are about to break out

  • Digitization
  • AI
  • chips
  • Software
Photo credits: pixabay.com

Last week was a tough one. Firstly, the European Central Bank heralded the turnaround in interest rates and, as expected, lowered the key interest rate by 25 basis points to 4.25%. Secondly, the hype surrounding meme stocks, and GameStop in particular, was revived by the comeback of influencer Keith Gill, aka Roaring Kitty. Following a live stream on YouTube, the share price soared again and will likely remain a hot topic over the next few trading days.

time to read: 3 minutes | Author: Stefan Feulner
ISIN: INFINEON TECH.AG NA O.N. | DE0006231004 , MGI MEDIA AND GAMES INVEST SE | SE0018538068 , PALANTIR TECHNOLOGIES INC | US69608A1088

Table of contents:


    Infineon facing a critical hurdle

    The chip industry is booming, and the demand for powerful processors for AI applications has led to a hype at US market leader Nvidia, pushing the share price up by over 1,000% since mid-October last year. Other companies in this segment, such as AMD, which rose by around 310%, and Super Micro Computer, which rose by over 425%, also benefited from the current boom.

    In contrast, one of Europe's leading companies in the semiconductor technology sector, Infineon, was less able to participate. The Munich-based company, which focuses on the development, manufacture and marketing of microelectronics and semiconductor solutions, has "only" seen its share price rise by around 72% to EUR 38.01 since the start of the upward trend last fall. However, a fresh buy signal would be generated if the downward trend established since mid-2021 at EUR 38.54 were to be exceeded, which could take Infineon shares towards the 2021 high of EUR 43.84.

    According to analyst opinions at French investment bank Exane BNP Paribas, the share is currently around 40% undervalued. The experts, therefore, raised their price target to EUR 53 at the end of the past trading week. A total of 26 analysts on Reuters Refinitiv rate the DAX group with an average target price of EUR 45.

    MGI with 170% potential

    The analysts at GBC AG see significant upside potential for MGI - Media and Games Invest SE, which operates a fast-growing, profitable ad software platform that matches global advertiser demand with publishers' ad supply while improving results through first-party data from its own games. The Company is registered as a Societas Europaea in Sweden, while its shares, currently trading at EUR 1.62, are listed on the Scale segment of the Frankfurt Stock Exchange and on the Nasdaq First North Premier Growth Market.

    The reason for maintaining the price target of EUR 4.50, which opens up a potential of 170% at the current price, is the fact that MGI was able to close the past financial year with sales of EUR 321.98 million despite a challenging environment. On a comparable basis, organic sales growth of 5.0% was even achieved compared to the previous year. A particularly high organic sales growth rate of 16.0% was achieved in the final quarter, which is traditionally the strongest in terms of sales.

    Growth was driven in particular by the 18.9% increase in the software customer base to 2,276 customers at the end of the financial year and the 19.1% increase in the digital advertising volume to 206 billion advertisements. MGI's strengthened market position in the mobile sector demonstrates its success, as evidenced by the leading market positions on the iOS and Android platforms with a market share of 12.0% each in the US, as determined by the industry experts at Pixalate. As a result, the Company's adjusted revenue forecast of EUR 303.0 million and the GBC analysts' revenue estimate of EUR 303.21 million were exceeded.

    From a technical chart perspective, the share price of MGI - Media and Games Invest SE, which is to be listed under the Company name "Verve" in future, was able to leave the EMA 50 behind. The next significant resistance level is the short-term downward trend, currently at EUR 1.66. If this is breached, the next hurdle will be the high for the year at EUR 1.92.

    Palantir relies on the military

    After a brief correction, the share price of data specialist Palantir is also on the verge of breaking out of the downtrend at USD 24.22, which has been in place since March 2024. After a strong rise from around USD 16 to over USD 27 since February of the current trading year, the Palantir share underwent a textbook correction, reduced its overbought position in the USD 20.50 range and then formed a stable floor. Exceeding the aforementioned downward trend would initially clear the way to a level of USD 27.50.

    According to CEO Alex Karp, the growth driver is expected to be artificial intelligence, as mentioned by the Company Head at the exclusive AIPCon conference. Due to current circumstances, the strategic focus is increasingly shifting towards the military sector.

    At the event in Palo Alto, California, Karp emphasized the ongoing cooperation with the US government. Recently, Palantir was awarded a five-year, USD 480 million contract from the US Department of Defense for Project Maven, which is designed to provide soldiers and intelligence analysts with faster and more accurate battlefield information.

    However, this military initiative is only one aspect of Palantir's broader approach. At AIPCon, more than 70 customer companies, including United Airlines, Lear and Wendy's, reported integrating Palantir's AI technologies into their operations.


    Data specialist Palantir intends to increase its focus on the military sector and should benefit from further major orders from this segment. Infineon is on the verge of reaching a multi-year high. Analysts see a share price potential of over 170% for MGI - Media and Games Invest SE.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

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    Der Autor

    Stefan Feulner

    The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
    He is passionate about analyzing a wide variety of business models and investigating new trends.

    About the author



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