Infineon Technologies raised its full-year guidance as the AI boom continues driving semiconductor demand. The German chip maker now expects revenue to grow significantly from the €14.66 billion ($17.14 billion) it reported for fiscal 2025, compared with its prior forecast of only moderate growth. Its power supply solutions for AI data centers are in particularly high demand, reflecting the surge in data center construction worldwide.

The company also boosted its profitability outlook. Infineon projects a segment result margin of around 20%, up from 17.5% last year and versus previous guidance for a high-teens percentage range. CEO Jochen Hanebeck said the company would grow more strongly than previously expected in the second half, citing solid semiconductor demand across many end markets, particularly AI applications driving the strongest growth.

The AI race has unleashed an unrelenting wave of investments as companies seek to build out the data centers needed to power the energy-intensive technology. This is driving demand for increasingly advanced chips for AI infrastructure, benefiting established chip makers like Infineon that supply critical components to data center operators worldwide. The company's upgraded guidance reflects its position to capture this expanding market opportunity.