Infineon sees 2026 revenue growth as AI outlook boosts sales
It increased its projected sales of power solutions for AI data centres to around 1.5 billion euros
[BERLIN] Infineon Technologies forecast that revenue will return to growth in the 2026 fiscal year, as the global boom in artificial intelligence (AI) data centres raised its sales outlook.
The German chipmaker sees “moderate revenue growth” in the fiscal year that ends in September, and it increased its projected sales of power solutions for AI data centres to around 1.5 billion euros (S$2.3 billion), it said on Wednesday (Nov 12).
Demand for AI data centres is helping Infineon weather weak growth prospects in its automotive market, which represents about half of its sales.
The forecast for the AI business marks an increase of about 50 per cent from its guidance last quarter, when chief executive officer Jochen Hanebeck said revenues from the segment will rise to 1 billion euros in 2026, from 600 million euros in the 2025 fiscal year.
“Global investment in AI infrastructure is continuing to rise rapidly, and we expect considerable growth,” he said.
“Growth momentum in the automotive, industrial and consumer markets remains modest. Many customers are proceeding cautiously and placing short-term orders,” he added.
Infineon’s 2026 outlook offers a snapshot into the car industry’s health.
Auto chipmakers have been mired in a prolonged demand slump, as their customers worked through stockpiles amassed after shortages during the Covid pandemic.
Heightened geopolitical tensions, fuelled by US President Donald Trump’s trade war and potential export tariffs on semiconductors, further roiled the market.
The company’s 2025 revenue slipped 2 per cent to 14.7 billion euros, based on the statement. This was in line with the average of analysts’ estimates compiled by Bloomberg.
Sales in the fourth quarter brought in 3.9 billion euros, up 6 per cent from the previous period, with all segments, including automotive, contributing to the increase.
Gross margin in the fourth quarter was 38.1 per cent, down from 40.9 per cent in the prior period. This was due to currency effects, and because some products for consumer applications in the power and sensor systems division, were sold for tighter margins, because of underutilised production capacity.
Revenue in the first fiscal quarter is forecast at about 3.6 billion euros, missing the average analyst estimate of 3.75 billion euros.
The company’s management has a history of offering cautious guidance to manage expectations, said JPMorgan analysts including Sandeep Deshpande.
“Our own opinion is that lower guidance (although it may be negative on the day of the report) would be better for the stock price on a one year view,” they wrote in a note before the results.
In October, Infineon competitors Texas Instruments and STMicroelectronics posted Q3 results that disappointed investors, signalling that the anticipated recovery in auto demand might be faltering.
Fallout from the Netherlands’ seizure of Chinese-owned chipmaker Nexperia in late September has further disrupted the car industry.
The Dutch company’s chips play a critical role in the automotive supply chain, and Beijing’s move to restrict exports of Nexperia products caused a supply crunch.
The sides have since moved to resolve the conflict, Bloomberg reported previously.
Infineon offers alternatives to some chips in Nexperia’s portfolio. BLOOMBERG
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