Published by Global Banking & Finance Review®
Posted on November 12, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleInfineon raises its AI chip sales forecast by 50% to 1.5 billion euros, while maintaining a cautious outlook for automotive and industrial sectors.
By Hakan Ersen and Miranda Murray
BERLIN (Reuters) -Germany's Infineon lifted its full-year sales forecast for chips used in AI data centres on Wednesday, while flagging a cautious automotives and industrial outlook.
Infineon raised its previous chip revenue target by 50% to 1.5 billion euros ($1.75 billion) for its 2026 fiscal year beginning October 1 after sales nearly tripled year-on-year to more than 700 million euros.
"Global investment in AI infrastructure is continuing to rise rapidly," CEO Jochen Hanebeck said in a statement, adding: "By the end of the decade, Infineon's addressable market will reach 8 billion euros to 12 billion".
LESS ROSY OUTLOOK OUTSIDE OF AI
Hanebeck said growth momentum in the automotive and industrial sectors was modest and there is a risk firms will reduce inventories to unsustainable levels by the end of 2025.
"Many customers are proceeding cautiously and placing short-term orders," said Hanebeck, adding that he expects a larger-than-usual 9% quarter-on-quarter drop in sales to 3.6 billion euros for the current three-month period.
For the 2026 fiscal year, Infineon forecasts total revenue increasing moderately from 2025's 14.7 billion euros, despite currency headwinds.
Infineon's shares were up 4.5% at 0926 GMT, with JP Morgan analysts calling the guidance "vague, but not negative".
($1 = 0.8575 euros)
(Reporting by Miranda Murray and Hakan Ersan; Editing by Ludwig Burger and Alexander Smith)
An AI chip is a specialized processor designed to accelerate artificial intelligence applications, enabling faster data processing and machine learning tasks.
Revenue growth refers to the increase in a company's sales over a specific period, indicating the company's ability to expand its business and attract more customers.
The automotive industry encompasses the design, development, manufacturing, marketing, and selling of motor vehicles, including cars, trucks, and motorcycles.
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