Infineon's Q3 Revenue Forecast Exceeds Expectations on AI-Driven Demand for Power Chips

Stock News05-06

Infineon Technologies AG reported a third-quarter revenue forecast that surpassed market expectations, driven by surging investments in artificial intelligence infrastructure. The company also anticipates significant full-year revenue growth.

Data shows the German chipmaker's second-quarter revenue increased by 6.2% to €3.81 billion, slightly below the average analyst estimate of €3.83 billion. Sales in its Power & Sensor Systems division grew 26% during the same period, reaching €1.26 billion. The company stated that demand from AI data centers is expected to drive growth in this business unit significantly above the group average.

In a statement released Wednesday, Infineon projected third-quarter revenue through June would be approximately €4.1 billion ($4.8 billion), exceeding analysts' average forecast of €4.04 billion. The company now expects fiscal year 2026 revenue to show "significant year-over-year growth," compared to previous expectations of moderate growth.

CEO Jochen Hanebeck commented, "The AI boom continues to intensify, driving strong demand for our power solutions for AI data centers. In the automotive sector, we're also seeing positive developments, particularly in software-defined vehicles."

Infineon and its European peers STMicroelectronics and NXP Semiconductors are showing recovery signs after recent weakness in automotive chip demand. STMicroelectronics' CEO Jean-Marc Chery noted last month that overall demand has improved in 2026, indicating customers are gradually working through inventory.

While the automotive industry remains the most important market for these three chipmakers, they are increasingly benefiting from AI infrastructure demand. Some of their products, including mature chips for current control, can work alongside advanced AI chips produced by companies like NVIDIA and TSMC in data center applications.

In February, Infineon announced it would increase its investment in AI technology for the current fiscal year to approximately €2.7 billion, up from the previously planned €2.2 billion. The company expects data center-related revenue to grow from about €1.5 billion (approximately 10% of sales) in fiscal 2026 to €2.5 billion in fiscal 2027.

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