Chip Maker Infineon Forecasts Strong Revenue Growth on Booming AI Demand — 2nd Update

By Mauro Orru

Infineon Technologies said it expects strong revenue growth in the current fiscal year as the race to build artificial-intelligence infrastructure keeps adding fuel to red-hot semiconductor demand.

The German chip maker on Wednesday detailed its revenue guidance for the year to the end of September, projecting roughly 16.3 billion euros ($18.80 billion) compared with 14.66 billion euros it reported for fiscal 2025. The company had previously guided for significant revenue growth, but without specifying a figure.

"Our power supply solutions for AI data centers remain in very high demand and continue to be our most important growth driver," Chief Executive Jochen Hanebeck said.

Like many of its peers, Infineon has been cashing in on surging demand for chips as some of the world's largest tech groups pledged hundreds of billions of dollars to build and power energy-hungry data centers.

The company said it had secured multiyear capacity agreements for AI data centers with several customers and that it was in talks for more. Those deals, it said, cover a cumulative revenue volume in a high single-digit billion-euro amount and also include some prepayments.

It now expects AI revenue to exceed 1.6 billion euros in fiscal 2026 compared with a previous forecast of around 1.5 billion euros. Hanebeck said in an earnings call that Infineon would upgrade its AI revenue projection of roughly 2.5 billion euros for the next fiscal year in November.

The revision is a sign of how intertwined AI has become with the fortunes of chip makers. Infineon rival and SpaceX supplier STMicroelectronics in July raised its data-center revenue target for a second time this year, just over a month since the first upgrade.

Infineon shares in Frankfurt fell more than 3% on Wednesday as investors reacted to weaker-than-expected margins. However, the stock is up over 60% since January, riding a wave of investor fervor that propelled global semiconductor stocks to new highs on expectations that appetite for chips will continue to outpace supply.

Aside from AI, Infineon is also reaping the benefits of a recovery in demand for chips from the automotive sector, a weak spot in recent years as carmakers slowly digested chip inventories they built at the height of the pandemic, weighing on demand for new orders. Hanebeck said automotive orders were picking up noticeably.

Revenue for the three months to the end of June grew 13% from a year earlier to 4.17 billion euros. Analysts had forecast revenue of 4.13 billion euros, according to Vara Research.

Net profit increased to 423 million euros from 305 million euros a year earlier. Its segment result--a closely watched profitability metric--rose to 797 million euros from 668 million euros, generating a 19.1% margin. Analysts had forecast a net profit of 452 million euros, a segment result of 809 million euros and a 19.6% margin, according to Vara Research.

The company said revenue in the quarter to the end of September should come in at roughly 4.7 billion euros, up from 3.94 billion euros a year earlier. Infineon's segment result margin is expected at about 23% compared with 18.2% the year-prior quarter, below consensus of 23.7%.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

August 05, 2026 03:42 ET (07:42 GMT)