The Zhitong Finance App learned that Infineon Technology raised its data center sales forecast for the 2027 fiscal year on Tuesday, showing that it believes this business will drive growth, although investors' concerns about the artificial intelligence boom are heating up. The German chipmaker said in a statement that data center sales are expected to increase to around 4 billion euros (4.5 billion US dollars) in the fiscal year ending September next year. The company previously predicted that AI data center power solutions would generate 2.5 billion euros in revenue during this period. Additionally, the company earns around 500 million euros of revenue each year from traditional data centers, and the new figures cover both segments of the business.
“We expect a significant increase in revenue and profitability in the 2027 fiscal year.” CEO Jochen Hanebeck said in a statement, adding that data center power chips and e-mobility will be one of the drivers of growth.
Fears about the AI bubble have triggered a sharp sell-off from chipmakers to so-called “neocloud” (neocloud) companies. Infineon's stock price has dropped 45% from its June high. Demand for data center chips has helped Infineon and its peers such as ST make up for the impact of slow revenue recovery in the struggling automotive industry.
Infineon is the only European chipmaker to give year-round guidance. J.P. Morgan analyst Sandeep Deshpande and others said in the report that the company favors careful guidance and wait for improved visibility before adjusting forecasts. J.P. Morgan originally expected Infineon's data center revenue (including CPU and other non-AI accelerator-related power revenue) to be between 3.5 billion and 4 billion euros in 2027.
As global data center construction accelerates, market demand for Infineon's power control chips has surged. These chips can support advanced processors such as Nvidia that are driving the AI boom.
However, the severe sell-off after the US election has affected the entire industry. According to reports last week, Anthropic first launched an official IPO roadshow on Tuesday. Some potential investors discussed a valuation range of around $1.1 trillion to $1.3 trillion, far below the focus level discussed a month ago.
According to data, Infineon's revenue for the 2026 fiscal year was €16.35 billion, in line with analysts' expectations. The company expects sales to increase to around €20 billion in fiscal year 2027, which is higher than analysts' expectations. The board will propose increasing the 2026 dividend by €3 to €0.38.
Infineon said that adjusted gross margin will be in the high to 40% range for this period, and plans to invest 3 billion to 3.5 billion euros. Adjusted gross margin for fiscal year 2026 was 43.1%.
The investment will focus on equipment to climb production capacity at the Dresden plant in Germany, the expansion of silicon carbide production capacity in Malaysia, and the launch of 300 mm gallium nitride wafers in Villach (Villach), Austria.
Infineon is also considering setting up a wafer manufacturing plant in Thailand, but it is unlikely to be implemented within the next three years. In September, the company announced it would sell part of its storage business to focus on its core business and the more dynamic portion of its investment portfolio.