Infineon is riding the AI data centre racket while investors fret that its margins are not quite shiny enough.
According to the Wall Street Journal, the German chip maker expects revenue of roughly €16.3 billion for the year to 30 September, up from €14.66 billion in fiscal 2025. It had previously promised significant growth but had been coy about an actual number.
Infineon chief executive Jochen Hanebeck said: “Our power supply solutions for AI data centers remain in very high demand and continue to be our most important growth driver.” The company has been cashing in as tech giants throw hundreds of billions at power-hungry AI data centres.
Infineon said it had signed multiyear capacity agreements for AI data centres with several customers and was chatting to more. Those deals cover a cumulative revenue volume in the high single-digit billions of euros and include some prepayments.
The outfit now expects AI revenue to top €1.6 billion in fiscal 2026, compared with an earlier forecast of about €1.5 billion. Hanebeck told an earnings call that Infineon would upgrade its rough €2.5 billion AI revenue forecast for the next fiscal year in November.
The revision shows how thoroughly AI has wrapped itself around the fortunes of chip makers. Infineon rival STMicroelectronics, a SpaceX supplier, raised its data centre revenue target in July for the second time this year.
Infineon shares in Frankfurt fell more than three per cent on Wednesday as investors grumbled about weaker-than-expected margins. The stock is still up more than 60 per cent since January, powered by chip fever and the belief that demand will keep outrunning supply.
Away from AI, Infineon is getting help from a recovery in automotive chip demand. Carmakers have spent years chewing through pandemic-era stockpiles, but Hanebeck said automotive orders were now picking up noticeably.
Revenue for the three months to the end of June rose 13 per cent from a year earlier to €4.17 billion. Analysts polled by Vara Research had expected €4.13 billion, so the top line did its job.
Net profit climbed to €423 million from €305 million a year earlier. Segment result rose to €797 million from €668 million, creating a 19.1 per cent margin, although analysts had expected €809 million and a 19.6 per cent margin.
For the quarter to the end of September, Infineon expects revenue of roughly €4.7 billion, up from €3.94 billion a year earlier. Its segment result margin is forecast at about 23 per cent, better than 18.2 per cent last year but below the consensus of 23.7 per cent.
