Infineon Technologies shares gained more than 4% in Frankfurt on Tuesday 10 November 2026 after the German chipmaker sharply raised its sales forecast for artificial intelligence data centres and predicted strong revenue growth in its new financial year.

The company said revenue from data centres in the year through September 2027 should be close to €4 billion, equivalent to about $4.49 billion, up from prior guidance of roughly €2.5 billion. The upgrade signals that Infineon expects the buildout of data centres to continue at pace, with demand for advanced semiconductors remaining strong.

Infineon, like other chipmakers supplying data centres, has benefited from hundreds of billions of dollars in spending commitments from some of the world's largest technology groups to build AI infrastructure. The shares have risen more than 50% over the past 12 months.

Revenue set to rise by more than a fifth

For fiscal 2027, Infineon is projecting revenue of about €20 billion, compared with €16.35 billion reported for fiscal 2026. Its segment result margin, a key measure of profitability, is expected to come in the mid-twenties percentage range, compared with 19.7% in fiscal 2026.

Chief executive Jochen Hanebeck said he expected a significant increase in revenue and profitability in fiscal 2027, pointing to semiconductors for data-centre power supplies, the expansion and modernisation of energy infrastructure, electromobility and software-defined vehicles as key contributors.

The forecasts were slightly ahead of analysts' expectations of €19.81 billion for revenue and a 24.9% margin, according to Vara Research. Analysts at J.P. Morgan noted that Infineon tends to guide cautiously at full-year results, and said the guidance should be seen in that light.

Fourth-quarter profit more than doubles

Revenue for the three months to the end of September grew 19% from a year earlier to €4.71 billion, in line with analysts' forecasts. Net profit climbed to €532 million from €231 million a year earlier, although that was below the €678 million analysts had expected.

The segment result increased to €1.12 billion from €717 million, generating a margin of 23.8%, ahead of the €1.10 billion and 23.3% margin analysts had forecast. The contrast between the segment result and net profit reflects items below the operating line, including the non-cash and financing effects that separate the two measures.

Infineon also said it would propose a dividend of €0.38 a share for fiscal 2026 at its annual general meeting in February, above the €0.35 a share it paid for fiscal 2025. For the first quarter of the new financial year, the company is targeting revenue of about €4.6 billion and a margin of about 23%.

Less reliant on the car industry

The results show how far Infineon's business has shifted. The technology has made the company less reliant on the car industry, which had been a source of difficulty in recent years as carmakers slowly worked through chip inventories built up during the pandemic, leaving demand subdued for several quarters.

Even that end-market is now recovering, according to the company, alongside growth in data centres and energy infrastructure. The timing of Infineon's financial year means it is among the first chipmakers in Europe to provide annual guidance, giving investors an early indication of where demand is heading.

Investors will now watch whether data-centre orders convert into sales at the pace Infineon expects, and whether the recovery in automotive demand continues. Dow Jones reported the raised AI sales goal and the share price rise, and TakeToNews covered the strong forecast and the stock surge. Share prices can fall as well as rise, and this article is not investment advice.