Infineon lifts 2026 outlook as AI demand boosts growth prospects
Infineon Technologies Raises Guidance Amid Surging AI and Automotive Demand
BERLIN, May 6 (Reuters) - Infineon Technologies raised its full-year guidance on Wednesday as demand for power supply solutions for AI data centers surged and automotive order intake improved, joining a wave of chipmakers benefiting from AI infrastructure spending.
Financial Performance and Revenue Growth
The German chipmaker, which provides parts for automotive, power and security systems, posted second-quarter revenue of 3.81 billion euros ($4.47 billion), up 6% from the same quarter a year earlier.
2026 Outlook Upgrade
Infineon now expects revenue to rise significantly year-on-year for fiscal 2026, up from a previous forecast of moderate growth. It also raised its 2026 segment result margin target to around 20% from the previously expected high-teens percent range.
Drivers Behind the Upgrade
The upgrade reflects higher demand across multiple business areas. "The AI boom strengthens further, and our power supply solutions for AI data centers are in very high demand," CEO Jochen Hanebeck said in a statement.
AI Data Center Revenue Projections
The company said it expects revenue of around 1.5 billion euros from AI data center applications in fiscal 2026, rising to around 2.5 billion euros in fiscal 2027.
Additional Information
($1 = 0.8522 euros)
(Reporting by Kirsti Knolle, Editing by Linda Pasquini)
