MUNICH / LONDON (IT BOLTWISE) – Infineon plans to boost sales growth in the coming financial year through significant investments in AI data centers. Despite a slight decline in sales last year, the chip maker remains optimistic, particularly due to increasing demand for its power solutions. Analysts see great potential for positive surprises in the strategic focus on artificial intelligence.
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Infineon, a leading player in the semiconductor industry, has presented its strategy for the coming financial year, which relies on significant investments in the field of artificial intelligence (AI). The group expects these investments to boost sales growth after a slight decline last year. Demand for Infineon’s power solutions, which are essential for AI data centers, is expected to increase significantly, which could increase sales in this area to 1.5 billion euros.
In the past financial year, Infineon recorded a decline in sales of two percent to around 14.7 billion euros, which, however, exceeded expectations of 14.6 billion euros. Operating profitability, measured by the segment profit margin, fell from 20.8 to 17.5 percent. Despite these challenges, CEO Jochen Hanebeck considers the result to be respectable. Weakness in most target markets, particularly in the automotive and industrial sectors, remains a challenge, but the strategic reorientation towards AI could provide new growth impetus.
Analysts are optimistic about Infineon’s future prospects. The major Swiss bank UBS has confirmed its buy recommendation with a price target of 44 euros and sees positive surprise potential in the conservative outlook for 2026. Barclays also rates the stock “Overweight” and highlights the impressive growth rates in the AI-related business. These could compensate for weaker dynamics in other segments. Goldman Sachs has slightly lowered its price target, but maintains a “Buy” rating.
Infineon’s focus on AI investments could not only drive revenue growth, but also strengthen the company’s position in a rapidly evolving market. The forecasts for the addressable market by the end of the decade are eight to twelve billion euros. This strategic orientation could help Infineon to assert itself in a challenging market environment and open up new growth opportunities. Investors and analysts will be watching developments closely as the company’s AI strategy has the potential to significantly influence the dynamics of the chip industry.
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