Infineon Technologies raised its sales and margin forecasts for the fiscal year as artificial intelligence continues to fuel demand for semiconductors.
The Infineon logo on a wafer. The chip maker raised its sales and margin forecasts for the fiscal year.
The German chip maker said revenue for the year to the end of September should grow significantly from the 14.66 billion euros ($17.14 billion) it reported for fiscal 2025, compared with a prior forecast of a moderate increase. Meanwhile, its segment result margin—a closely watched profitability metric—is expected to climb to around 20% from 17.5% last year, compared with previous guidance of a margin in a high-teens percentage range.
“The AI boom strengthens further, and our power supply solutions for AI data centers are in very high demand. The expansion of power infrastructure is gaining momentum and is becoming an increasingly important growth driver for our industrial business,” Chief Executive Jochen Hanebeck said.
Infineon said revenue for the three months to the end of March grew 6% from a year earlier to 3.81 billion euros. Analysts had forecast quarterly revenue of 3.82 billion euros, according to Vara Research.
Infineon’s net profit increased to 301 million euros from 232 million euros a year earlier. Its segment result grew to 653 million euros from 601 million euros, generating a 17.1% segment-result margin. Analysts had forecast a net profit of 334 million euros, a segment result of 677 million euros and a 17.7% segment-result margin, according to Vara Research.
