Infineon raises 2026 outlook as AI data center demand powers growth

BERLIN, May 6 (Reuters) — Infineon Technologies raised its full-year guidance on Wednesday, powered by a surge in demand for power supply solutions tailored to AI data centers and a notable improvement in automotive order intake. The German chipmaker, which supplies components for automotive, power management, and security systems, reported second-quarter revenue of €3.81 billion ($4.47 billion), up 6% from the same period a year earlier.

Infineon now projects revenue to rise significantly year-on-year for fiscal 2026, a sharp upgrade from its previous forecast of only moderate growth. The company also raised its 2026 segment result margin target to around 20%, up from the earlier high-teens percentage range.

The revised outlook reflects a broader trend in the semiconductor industry, where AI-driven data center expansion is creating sustained demand for efficient power management chips. At the same time, automotive orders are rebounding as global carmakers ramp up production of electric vehicles and advanced driver-assistance systems.

Industry reactions:

“Infineon is riding the AI wave better than most,” said Markus Brenner, a Munich-based semiconductor analyst. “Their power solutions are becoming the backbone of next-gen data centers. This isn’t just a blip — it’s structural growth.”

“Sure, the numbers look good, but let’s not pretend the automotive side is fully back,” said Elena Vogt, a supply chain consultant in Stuttgart. “One good quarter doesn’t erase the inventory glut we saw last year. I’ll believe the recovery when I see three straight quarters of growth.”

“Finally, some good news for German tech,” said Lukas Meier, a retail investor from Frankfurt. “I’ve been holding Infineon shares for two years, and it’s been a rollercoaster. This guidance makes me feel like we’re actually going somewhere.”

($1 = 0.8522 euros)

(Reporting by Kirsti Knolle; Editing by Linda Pasquini)