Silver Corrects to USD 65 – Speculators Are Worried, Industry Is Celebrating! Silver North, Infineon, and Micron Technologies in Focus

Why is silver so important in an industrial context?

Silver plays a central role in industrial applications because it has the highest electrical conductivity of all metals, thereby minimizing losses in electronic systems. Furthermore, silver exhibits excellent thermal conductivity, making it particularly valuable for applications involving high heat generation. In the semiconductor industry, silver is used in conductor tracks, contacts, and solder joints, among other things, to enhance the performance and reliability of chips. In addition, silver is gaining even greater significance due to the expansion of electric mobility, renewable energy, and AI infrastructure, as all these sectors rely heavily on high-performance electronics.

Infineon Technologies - Growth through Power Semiconductors and Electric Mobility

For Infineon Technologies, silver is not a primary raw material like silicon, but it is an important component in packaging and interconnect technologies within power semiconductors. In particular, silver-based materials are used in power management chips, such as those Infineon manufactures for automotive and industrial applications, to improve conductivity and service life. The high importance of reliability and efficiency in these applications indirectly reinforces the relevance of silver.

In its latest quarterly results, Infineon showed solid performance. In Q1 2025/26, revenue rose by 7% to around EUR 3.66 billion, with a segment margin of just under 18%. At the same time, negative free cash flow of around EUR 199 million weighed on short-term investor sentiment. Strategically, Infineon continues to benefit from trends such as electromobility and AI, which are driving demand for power semiconductors. Yesterday, Infineon plummeted by more than 5%; here, investors are likely concerned that the Gulf blockade will bring shipping traffic to a standstill. In the long term, however, 25 out of 29 analysts on the LSEG platform are more optimistic. Over the next 12 months, the stock is expected to reach an average price target of EUR 49.19 - a potential gain of over 30% compared to yesterday's price of EUR 37.20!

Micron Technologies - Cyclical Business Model with High Volatility

Micron Technology also uses silver, though the depth of integration is comparatively low. However, rising demands for data transfer speeds and energy efficiency in DRAM and HBM memory are increasing the medium-term importance of highly conductive materials such as silver. The company offers other attractions for investors, namely its top positioning in the high-tech market. In the most recent quarter, it generated approximately USD 23.9 billion in revenue and earnings per share of USD 12.20, significantly exceeding market expectations. This performance is largely driven by strong demand for memory solutions for AI and data centers.

For the May quarter, the company is now forecasting revenue of USD 33.5 billion and earnings per share of USD 19.15, which is 42% and 70% above current consensus estimates, respectively. The gross margin rose by an outstanding 1,800 basis points quarter-over-quarter to 74.9%. This was driven by price increases for DRAM and NAND in the mid-60% to high-70% range. Overall, the company has thus started 2026 on an almost euphoric note; analysts on the LSEG platform expect a target price of USD 476, which was actually already reached this week. Yesterday, profit-taking pushed the price down by 5%. Anyone investing here should keep a close eye on the industry's cyclical nature!

Silver North – High-Grade Exploration in the Yukon

Canadian explorer Silver North Resources is benefiting from the current market environment, where scarcity is becoming a stress factor. High industrial demand is driving projects forward; whoever makes the fastest progress can tap into a tight market with dream margins. Against this backdrop, management is focusing on exploring high-grade silver deposits in the Yukon, a historically productive mining region with existing infrastructure. The flagship Haldane project, located in close proximity to Hecla Mining's producing Keno Hill mine, is the key value driver.

The latest drill results provide substantial evidence of economically attractive mineralization, including sections with over 2,000 g/t silver as well as combined intervals averaging around 818 g/t silver over more than 13 m. This is complemented by significant gold, lead, and zinc content, which further enhances the project's potential economics. To date, mineralization has been identified over approximately 100 m of strike length and to depths of around 150 m, indicating potential for scaling up. In parallel, the company plans annual drilling programs of 5,000 to 7,000 m to systematically extend the Main Fault structure. In addition to Haldane, the Tim Project offers further upside potential, as it is located near Coeur Mining's Silvertip Mine and anomalous silver-lead-zinc grades have already been identified. Management recently finalized the 2026/27 drilling programs with the well-known service provider Boart Longyear.

On the financial side, following a substantial capital increase, the company now has CAD 12 million in cash and cash equivalents. At yesterday's price of CAD 0.29, the market capitalization stands at just under CAD 30 million. Not expensive for the high-grade zones in the Yukon!

Silver has suffered a sharp decline in recent days. Whether the decline will end at USD 65 is anyone's guess, as the precious metal did, after all, surge by a whopping 400% at its peak. Semiconductor companies are currently grappling with supply chain issues, but their volatile swings repeatedly offer risk-aware investors attractive entry points. The slow appreciation of the explorer Silver North is likely to continue unabated.