Infineon Raises AI Power-Supply Target Amid Revenue Rebound

Infineon has revised its 2026 AI power-supply revenue target upward to €1.5 billion, marking a 50% increase from prior forecasts. CEO Jochen Hanebeck attributes this adjustment to surging global investments in AI infrastructure. The company anticipates moderate revenue growth this fiscal year following a period of sluggish demand in automotive and industrial sectors.

Gross margins dipped to 38.1% in Q2, pressured by currency fluctuations and competitive pricing in consumer power products. Automotive division revenues—constituting half of total sales—remain constrained as chip inventories normalize post-pandemic. CFO Sven Schneider characterizes ongoing trade volatility as "the new normal," though expects stabilization from emerging trade agreements.

Shares edged 0.6% higher to €34.09 in Frankfurt trading following the announcement. Fiscal 2025 revenues declined 2% to €14.66 billion, with AI growth partially offsetting automotive sector weakness.