Technical Analysis in Focus: Opportunities at Infineon, Volatus Aerospace, and Meta?

Infineon: Up and Down, but No Breakout Yet

Infineon is one of the most popular stocks in Germany. The chip manufacturer is benefiting immensely from the artificial intelligence boom. This has also been reflected in the share price. Over the past 12 months, it has risen by an impressive 93% and hit a new all-time high of nearly EUR 89 in early June. To think that on March 10, 2009, the stock was trading at just EUR 0.35. A long uptrend has thus reached a peak, and the stock is currently in a correction phase. Within a few weeks, it fell by more than 20% from its peak. From a purely technical perspective, the stock has thus broken below the medium-term uptrend channel. A few days ago, the short-term outlook also deteriorated significantly. Infineon’s stock broke below the 50-day moving average, triggering a technical Sell signal.

As a result, key resistance levels have formed on Infineon’s chart. The former support level at EUR 75.10 has now become the first major resistance level. Above that, the zone around the all-time high is the next level of resistance. On the downside, due to the double top, the stock could find strong support again only in the EUR 65 range. However, buying interest should return at that level. So far, this correction at Infineon looks technically sound. However, short-term momentum has shifted to the bears’ side.

For those who fundamentally believe in the story, a buying opportunity now presents itself if the stock forms a true bottom. But we are not there yet. From a purely technical perspective, this will only happen at the support level around EUR 65. However, sentiment toward semiconductor stocks can shift quickly. In that case, technical analysis plays only a secondary role compared to market sentiment, and the stock could then rebound rapidly.

Volatus Aerospace: Drones for NATO

Drones are becoming increasingly important in military conflicts. And military spending, especially in Western countries, is rising sharply. This was recently demonstrated by the German government’s draft budget. But the NATO meeting in Ankara also made it clear which direction things are heading. Furthermore, the conflict in the Persian Gulf appears to be entering a new phase of intensity.

For military experts, it is clear that wars in the future will no longer be won with large numbers of tanks, aircraft, and ships. Rather, intelligent, simple systems such as unmanned aerial vehicles are playing an increasingly important role. With Volatus Aerospace, investors can capitalize on this very trend. The Canadian company has a sales pipeline of around CAD 500 million and has already secured orders from NATO partners. On top of that, the drone portfolio and the service and data offerings are receiving significant support from the Canadian government. Prime Minister Carney is pushing for a shift away from the unpredictable neighbour, the US, and aims to spend more than two-thirds of the national defence budget domestically in the long term. With Volatus’ technology, Canada is well-positioned for the future. And where no alternative exists, European partners such as Germany are given preference. This is evident in the recent order placed with German shipyards.

Volatus CFO Abhinav Singhvi explained the company’s strategy at the recent IIF.

https://www.youtube.com/watch?v=fURtUtX51IY

From a technical analysis perspective, Volatus’ stock is in a volatile phase in the long-term picture and is currently working toward forming a bottom. Following a steep rise in the first half of 2025, the stock is now consolidating quite volatilely in the range of CAD 0.50 to 0.80. A key positive driver was the stock’s promotion to the Main Board of the Toronto Stock Exchange. To sustainably return to higher levels, the company will need either announcements of additional orders or a more positive market sentiment. Even attractive, smaller companies are currently suffering from the high volatility in the stock markets. In our view, given the low valuation of around CAD 430 million, there is significant upside potential here in the medium and long term.

Meta Platforms: Investing Too Much—or Too Little?

That is the key question facing the AI hyperscalers: How much investment is actually needed to remain competitive in the artificial intelligence race? For now, free cash flow at the major technology companies is coming under pressure as they continue to expand their computing infrastructure. In some cases, these investments are even being financed through additional debt. As a result, the exceptionally high profit levels seen in recent years at companies such as Alphabet, Meta Platforms, and Amazon are likely to come under pressure in the near term.

Meta Platforms (Facebook, Instagram, WhatsApp) is also heavily involved here. It recently raised its full-year 2026 capital expenditure guidance to USD 125-145 billion. Meta is currently building a massive AI data center hub in Alberta, Canada, with a capacity of 1-1.8 gigawatts. There, the focus is primarily on cheap energy and vast open spaces. The key question remains: Will these investments pay off?

At the same time, Meta is pursuing diversification. It has been reported that the company is building its own cloud division to lease excess AI capacity to enterprise customers. However, the competition with AWS and Azure is fierce! At least the advertising business continues to perform well.

From a purely technical perspective, Meta’s stock performance is mediocre. Like many of the so-called “Mag7” stocks, it peaked in late 2024/early 2025. Nevertheless, the stock remains in an intact, long-term uptrend. The all-time high is now a good quarter higher than the current price. In the short term, the stock has stabilized just above the key 50-day moving average following the recent pullback. Notably, the recent rally to USD 628 was accompanied by a sharp increase in trading volume, while the consolidation over the past few days occurred amid declining revenue. From a technical perspective, this is generally viewed as a constructive pattern. Over the longer term, the stock remains closely tied to the AI investment theme. At this stage, however, no one can say with certainty which companies will ultimately emerge as the biggest winners of the AI revolution. For traders, the next technical breakout could present an attractive entry opportunity. For long-term investors, however, buying the stock ultimately comes down to conviction in the AI investment theme.

Infineon, the German chip stock, is currently in a consolidation phase. Given its robust order pipeline, however, nothing should go wrong on the operational front for the time being. Volatus Aerospace benefits not only from the shift in modern warfare but also from its massive sales pipeline, which even exceeds its market capitalization. Meta remains a matter of faith. Only those who truly believe in the triumph of AI and high future profits should get in here.

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