Chief Executive Jochen Hanebeck expects a substantial rise in revenue and profitability in fiscal 2027.
Infineon is among the first European chipmakers to release full-year guidance, giving investors an early look at where industry demand is heading.
Infineon Technologies has lifted its sales forecast for artificial intelligence-related business in the new fiscal year, signaling that the company believes the global build-out of data centers will continue at a rapid pace and that demand for high-end semiconductors will remain strong.
The German chipmaker said revenue from its data center business will approach 4 billion euros (about $4.49 billion) in the fiscal year ending September 2027, up from previous guidance of roughly 2.5 billion euros.
Some investors worry that Democrats winning majorities in both chambers of the U.S. Congress could hinder data center construction in the United States. But the raised target shows Infineon remains bullish on demand growth for AI infrastructure in the coming months.
On Tuesday, Infineon shares rose more than 4% on the Frankfurt exchange; the stock has gained more than 50% over the past 12 months.
Like its peers in data center chips, Infineon has benefited handsomely as the world's major technology giants spend hundreds of billions of dollars building AI infrastructure.
AI-related business has reduced Infineon's reliance on the automotive industry. In recent years, automakers have worked through chip inventories stockpiled during the pandemic peak, keeping the auto market under pressure and weighing on demand for Infineon's chips, with sales falling short of expectations for multiple quarters.
Now, the automotive end market is also recovering. Chief Executive Jochen Hanebeck said he expects company revenue and profitability to grow significantly in fiscal 2027; data center power semiconductors, expansion and modernization of energy infrastructure, electric mobility and software-defined vehicles will be the main growth drivers.
Infineon expects total revenue of about 20 billion euros in fiscal 2027; actual revenue in fiscal 2026 was 16.35 billion euros.
The core profitability metric — the segment result margin — is expected to reach a range of around 25%; in fiscal 2026 the figure was 19.7%.
Because of its fiscal calendar, Infineon is among the earliest chip companies in Europe to publish full-year operating guidance, offering investors a reference for judging industry demand.
According to Vara Research data, analysts' consensus forecast was revenue of 19.81 billion euros and a segment result margin of 24.9%, putting the company's projections broadly in line with market expectations.
Analysts at JPMorgan wrote in a research note: "Overall, Infineon has consistently tended to give conservative guidance when releasing full-year results, and this earnings outlook should also be viewed in that context."
According to Vara Research, Infineon's quarterly revenue for the three months ended September rose 19% year over year to 4.71 billion euros, in line with analyst expectations. Net profit climbed to 532 million euros from 231 million euros a year earlier; segment result rose to 1.12 billion euros from 717 million euros, for a segment margin of 23.8%.
Analysts had previously expected net profit of 678 million euros, segment result of 1.1 billion euros and a margin of 23.3%.
Infineon said it will propose a dividend of 0.38 euros per share for fiscal 2026 at its annual shareholders' meeting in February next year, above the 0.35 euros per share paid for fiscal 2025.
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