Infineon raises 2026 AI power-supply target to €1.5 billion amid revenue rebound

Infineon Technologies AG raised its AI data center power-supply target to €1.5 billion by 2026, up from €1 billion projected just one quarter earlier, according to a statement released Wednesday.

Infineon, which ends its fiscal year in September, said it anticipates moderate revenue growth this year after a slow period weighed down by weak demand in autos.

CEO Jochen Hanebeck said global investment in AI infrastructure keeps climbing, prompting a new forecast that’s 50% higher than before.

He also pointed out that growth in the automotive, industrial, and consumer sectors remains subdued, with customers staying cautious and limiting orders to short-term needs.

Infineon’s gross margin slipped to 38.1% from 40.9% in the second quarter, to currency fluctuations and lower margins on certain consumer power and sensor products, which were sold under tighter pricing due to underused production capacity, said the earnings report.

AI growth cushions auto weakness for Infineon

Infineon’s automotive division, which accounts for roughly half of total revenue, continues to face sluggish demand, as the car-chip market remains stuck in a slowdown after customers stockpiled components during the Covid-19 shortages.

Infineon’s CFO Sven Schneider said during an interview with Bloomberg TV that such instability from tariffs and global politics is “the new normal,” though he expects stability to improve as new trade deals emerge. Shares of Infineon rose 0.6% to €34.09 at 9:14 a.m. in Frankfurt following the announcement.

The company’s 2025 fiscal year revenue fell 2% to €14.66 billion, aligning with analyst expectations. In the fourth quarter, sales reached €3.94 billion, up 6% from the prior period, with contributions from all divisions, including automotive.

For the first fiscal quarter of 2026, Infineon said it expects revenue of about €3.6 billion, below the market’s average forecast of €3.75 billion.

In comparison, rivals Texas Instruments and STMicroelectronics reported disappointing Q3 earnings missed, especially after the global automotive chip supply chain took most of its hit in late September thanks to the Dutch government seized Nexperia, a Chinese-owned semiconductor firm critical to carmakers.

Companies including Volkswagen AG warned about the impact of a shortage, and Honda Motor Co. cut its annual profit guidance after halting production at some plants. The Dutch company’s facility in China accounted for about half of Nexperia’s pre-crisis volumes.

Beijing’s retaliation (restricting exports of Nexperia’s chips) caused another supply squeeze. Cryptopolitan has reported that both sides have started to settle the dispute.

Jochen said on a media call that overlap between Infineon’s product lineup and Nexperia’s affected semiconductors is limited, adding, “Here and there we were able to help out a little bit.”

Now the Netherlands is prepared to suspend its powers over Nexperia if the shipment of supplies resumes and is verified.

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