Infineon upbeat on AI chips but cautious on automotive, industrials
Infineon Technologies AG logo is seen during German Economy Minister Robert Habeck and Foreign Minister Annalena Baerbock's visit, in Dresden, Germany July 13, 2023. REUTERS/Annegret Hilse
BERLIN :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.
Infineon raised its previous chip revenue target by 50 per cent 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.
"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".
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 per cent 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 per cent at 0926 GMT, with JP Morgan analysts calling the guidance "vague, but not negative".
($1 = 0.8575 euros)
