Infineon Soars as AI Boosts 2026 Revenue Growth Forecast

Group 1: Company Outlook - Infineon Technologies AG forecasts revenue growth in the 2026 fiscal year, driven by the boom in AI data centers, with projected sales of power solutions for AI data centers reaching approximately €1.5 billion ($1.7 billion) [1] - The company anticipates AI data center-related revenue to more than double in fiscal 2026, constituting about 10% of total sales, following a tripling of its AI business in 2025 [2] - Infineon's 2025 revenue decreased by 2% to €14.66 billion, aligning with analysts' estimates, while fourth-quarter sales increased by 6% to €3.94 billion, with contributions from all segments [6] Group 2: Industry Context - Demand for AI data centers is helping Infineon navigate weak growth in the automotive market, which accounts for about half of its sales [2] - The automotive chip market is experiencing a prolonged demand slump as customers deplete stockpiles built during the Covid-19 pandemic, compounded by geopolitical tensions and trade issues [4] - Chief Financial Officer Sven Schneider indicated that instability from tariffs and geopolitical issues will become the "new normal," but expects supply chains to stabilize as more trade agreements are established [5] Group 3: Market Sentiment - CEO Jochen Hanebeck expressed optimism about the growth of AI infrastructure, despite investor concerns regarding a potential bubble due to significant investments in the technology [3] - Infineon shares rose by as much as 12% to €37.94, marking the largest intraday gain since April 10, reflecting positive market sentiment following the revenue forecast [1]