BERLIN (Reuters) -German chipmaker Infineon significantly raised its 2026 sales target for the AI power supply segment on Wednesday, citing strong demand, and forecast total revenue increasing
Infineon Optimistic About AI Chips, Cautious on Automotive Sector
Infineon's Market Outlook
By Hakan Ersen and Miranda Murray
AI Chip Revenue Growth
BERLIN (Reuters) -Germany's Infineon lifted its full-year sales forecast for chips used in AI data centres on Wednesday, while flagging a cautious automotives and industrial outlook.
Challenges in Automotive and Industrial Sectors
Infineon raised its previous chip revenue target by 50% to 1.5 billion euros ($1.75 billion) for its 2026 fiscal year beginning October 1 after sales nearly tripled year-on-year to more than 700 million euros.
Customer Order Trends
"Global investment in AI infrastructure is continuing to rise rapidly," CEO Jochen Hanebeck said in a statement, adding: "By the end of the decade, Infineon's addressable market will reach 8 billion euros to 12 billion".
Sales Forecast Adjustments
LESS ROSY OUTLOOK OUTSIDE OF AI
Hanebeck said growth momentum in the automotive and industrial sectors was modest and there is a risk firms will reduce inventories to unsustainable levels by the end of 2025.
"Many customers are proceeding cautiously and placing short-term orders," said Hanebeck, adding that he expects a larger-than-usual 9% quarter-on-quarter drop in sales to 3.6 billion euros for the current three-month period.
For the 2026 fiscal year, Infineon forecasts total revenue increasing moderately from 2025's 14.7 billion euros, despite currency headwinds.
Infineon's shares were up 4.5% at 0926 GMT, with JP Morgan analysts calling the guidance "vague, but not negative".
($1 = 0.8575 euros)
(Reporting by Miranda Murray and Hakan Ersan; Editing by Ludwig Burger and Alexander Smith)
