Infineon Technologies said it expects strong revenue growth in the current fiscal year as the race to build artificial-intelligence infrastructure keeps adding fuel to red-hot semiconductor demand.

The German chip maker on Wednesday detailed its revenue guidance for the year to the end of September, projecting roughly 16.3 billion euros ($18.80 billion) compared with 14.66 billion euros it reported for fiscal 2025.

“An increasing number of our target markets are showing a positive trend. Our power supply solutions for AI data centers remain in very high demand and continue to be our most important growth driver,” Chief Executive Jochen Hanebeck said.

Infineon said it had secured multiyear capacity agreements for AI data centers with several customers and that it was in talks for more. Those deals cover a cumulative revenue volume of a high single-digit billion-euro amount and also include some prepayments.