Infineon Lifts Sales Guidance After Boost From AI Chips
Infineon Technologies raised its sales forecasts for the fiscal year amid solid demand for chips to power servers and data centers behind the artificial-intelligence boom.
The German chip maker said revenue would be flat to slightly up in the year to the end of September from the 14.96 billion euros ($15.94 billion) it reported for fiscal 2024. Infineon had previously forecast a slight decline. Meanwhile, Infineon’s segment result margin–a key profitability measure–is still expected in the mid-to-high-teens percentage range.
The upgrade comes after what Infineon called a slightly better start to the fiscal year than expected amid a boost in semiconductors sales for servers and data centers to power AI. However, areas of the semiconductor industry outside of artificial intelligence continue to suffer from sluggish demand.
Infineon posted 3.42 billion euros in sales in the three months to the end of December, down 8% on year. Net profit declined to 246 million euros from 587 million euros, while its segment result contracted to 573 million euros from 831 million euros, generating a 16.7% margin.
Analysts had forecast quarterly sales of nearly 3.23 billion euros, a net profit of 252 million euros, a segment result of 477 million euros and a 14.8% margin, according to a Vara Research consensus.
For the current quarter, Infineon is expecting sales of around 3.6 billion euros and a segment result margin in the mid-teens percentage range.
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Infineon Lifts Sales Guidance After Boost From AI Chips, Source
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