Infineon Doubles Down: €1.5B AI Power-Supply Target by 2026 Signals Chip Giant’s Comeback
Infineon just cranked up its AI ambitions—and Wall Street's watching.
The German semiconductor powerhouse now eyes €1.5 billion in AI-related power supply revenue by 2026, a bullish revision that comes alongside its post-slump recovery. Analysts whisper this could be either a masterstroke or another case of 'chipmakers chasing hype cycles.'
Power play: As data centers guzzle more electricity for AI workloads, Infineon's betting its energy-efficient silicon will dominate the infrastructure buildout. No mention of whether crypto miners—the original power hogs—are sulking in the corner.
Market mechanics: The raised target coincides with rebounding revenues, suggesting either visionary leadership or desperate pivot theater. Either way, shareholders get a front-row seat to the high-stakes semiconductor showdown.
AI growth cushions auto weakness for Infineon
Infineon’s automotive division, which accounts for roughly half of total revenue, continues to face sluggish demand, as the car-chip market remains stuck in a slowdown after customers stockpiled components during the Covid-19 shortages.
Infineon’s CFO Sven Schneider said during an interview with Bloomberg TV that such instability from tariffs and global politics is “the new normal,” though he expects stability to improve as new trade deals emerge. Shares of Infineon ROSE 0.6% to €34.09 at 9:14 a.m. in Frankfurt following the announcement.
The company’s 2025 fiscal year revenue fell 2% to €14.66 billion, aligning with analyst expectations. In the fourth quarter, sales reached €3.94 billion, up 6% from the prior period, with contributions from all divisions, including automotive.
For the first fiscal quarter of 2026, Infineon said it expects revenue of about €3.6 billion, below the market’s average forecast of €3.75 billion.
In comparison, rivals Texas Instruments and STMicroelectronics reported disappointing Q3 earnings missed, especially after the global automotive chip supply chain took most of its hit in late September thanks to the Dutch government seized Nexperia, a Chinese-owned semiconductor firm critical to carmakers.
Companies including Volkswagen AG warned about the impact of a shortage, and Honda Motor Co. cut its annual profit guidance after halting production at some plants. The Dutch company’s facility in China accounted for about half of Nexperia’s pre-crisis volumes.
Beijing’s retaliation (restricting exports of Nexperia’s chips) caused another supply squeeze. Cryptopolitan has reported that both sides have started to settle the dispute.
Jochen said on a media call that overlap between Infineon’s product lineup and Nexperia’s affected semiconductors is limited, adding, “Here and there we were able to help out a little bit.”
Now the Netherlands is prepared to suspend its powers over Nexperia if the shipment of supplies resumes and is verified.
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