Munich — 12 November 2025. German chipmaker Infineon Technologies is leaning harder into the artificial‑intelligence build‑out. After reporting full‑year results broadly in line with guidance, the company sharply raised its 2026 sales goal for power‑supply solutions used in AI data centers—a move that sent the shares higher in Frankfurt trading. [1]
Why it matters
- AI is now Infineon’s clearest growth engine. The company expects around €1.5 billion in revenue from power solutions for AI data centers in fiscal 2026, significantly above its prior plan. Management also sees the addressable market for those AI‑related power components rising to €8–€12 billion by 2030. [2]
- Shares rallied on the outlook. By midday, the stock surged roughly 8% to around €36.5, making it one of the day’s strongest DAX performers. [3]
Results at a glance (FY 2025; year ended 30 September)
- Revenue: €14.662 billion, down ~2% year on year. [4]
- Segment Result: €2.560 billion; Segment Result Margin: 17.5%. [5]
- Adjusted EPS: €1.39. [6]
- Free cash flow: negative €1.051 billion, reflecting the acquisition of Marvell’s Automotive Ethernet business; Adjusted free cash flow: €1.803 billion. [7]
For the just‑ended Q4 FY 2025, revenue was €3.943 billion and the Segment Result reached €717 million (18.2% margin). [8]
AI data centers are the growth engine
Infineon’s business supplying power semiconductors and system solutions for AI servers accelerated markedly this year. The company generated more than €700 million from AI‑data‑center power solutions in FY 2025—nearly triplethe prior year—and topped its own internal target by about €100 million, despite currency headwinds. That traction underpins the new €1.5 billion revenue goal for FY 2026 and management’s longer‑term view that AI infrastructure can support a large, durable market by decade’s end. Executives also pointed to a 30–40% market share in this niche and a plan to defend that lead. [9]
External reporting on Wednesday underscored the same pivot, noting the raised 2026 target and reiterating the market‑size outlook for AI‑power components. [10]
Automotive remains cautious; supply risk spotlight
While AI infrastructure brightens the outlook, Infineon remains careful on automotive—a core end‑market. Management warned that inventory reductions at carmakers and suppliers could run to “unsustainably low” levels by year‑end, creating potential bottlenecks if demand rebounds in early 2026. The discussion followed weeks of uncertainty around Nexperia—placed under Dutch state control because of concerns tied to its Chinese owner—and temporary Chinese export restrictions that had rattled parts of Europe’s auto supply chain. Beijing has since eased procedures for Nexperia chip exports, relieving some pressure, Infineon said. [11]
Beyond supply risk, management expects muted EV momentum in the near term as US tax incentives fade and some Western brands delay new EV platforms, while Europe could see a modest pickup. [12]
Guidance: moderate growth in FY 2026 despite FX headwinds
For FY 2026, Infineon guides to moderate revenue growth versus FY 2025 under an assumed €/$ 1.15 exchange rate, with adjusted gross margin in the low‑40s and Segment Result Margin in the high‑teens. Capex is planned at roughly €2.2 billion. The company targets ~€1.6 billion adjusted free cash flow (around €1.1 billion reported FCF after building investments). For Q1 FY 2026, Infineon expects about €3.6 billion in revenue and a mid‑to‑high‑teens Segment Result Margin. [13]
Market reaction: IFX leads the DAX higher
The raised AI‑power target and in‑line results prompted a relief rally. Around midday, Infineon (IFX) shares climbed roughly 8% to ~€36.54, briefly topping the DAX leaderboard. Other market tickers and live blogs in Germany reflected similar intraday moves as traders rotated into European semis on AI spending signals. [14]
The bigger picture
Infineon’s power‑electronics focus—spanning silicon carbide (SiC) and gallium nitride (GaN) technologies—positions it at the heart of the AI server‑power race, where hyperscalers are re‑architecting racks for efficiency and density. With AI workloads multiplying, investors are increasingly valuing the electricity and conversion layer of the stack, not just training accelerators. The company’s own numbers and Wednesday’s trading suggest that theme is now a core driver for European chip equities. [15]
Key takeaways for readers
- AI power is scaling fast: FY 2025 revenue here exceeded €700m, with €1.5bn targeted for FY 2026. [16]
- Macro still mixed: Auto remains cautious; inventory normalization and policy shifts (e.g., US incentives) will influence demand. [17]
- Numbers were solid vs. plan: FY 2025 landed broadly as expected; FY 2026 points to moderate growth with FX a headwind. [18]
- Shares responded: Up about 8% intraday on the DAX after the update. [19]
Reporting based on company filings/announcements and same‑day coverage in major outlets; figures and guidance reflect statements made on 12 November 2025. [20]
Disclaimer: This article is for information only and is not investment advice. Always do your own research.
References
1. markets.ft.com, 2. markets.ft.com, 3. www.boerse.de, 4. markets.ft.com, 5. markets.ft.com, 6. markets.ft.com, 7. markets.ft.com, 8. markets.ft.com, 9. www.faz.net, 10. www.reuters.com, 11. www.faz.net, 12. www.faz.net, 13. markets.ft.com, 14. www.boerse.de, 15. markets.ft.com, 16. www.faz.net, 17. www.faz.net, 18. markets.ft.com, 19. www.boerse.de, 20. markets.ft.com
