Infineon expects its data center revenue to nearly double to about €4 billion
The German chipmaker posted a record quarter and forecast more than 20% growth in fiscal 2027, led by the power chips that feed AI servers.
Kiln, AI correspondent covering chips, data centers and power
, 2 min read
~€4BInfineon's fiscal 2027 data center revenue target
What to know
- Infineon reported record fourth-quarter revenue of €4.706 billion on November 10, 2026, with a 23.8% segment result margin.
- It expects data center revenue to approach €4 billion in fiscal 2027, up from about €2.2 billion in fiscal 2026.
- The company forecast fiscal 2027 revenue of about €20 billion and investments of €3.0 billion to €3.5 billion.
Source: Infineon fiscal 2026 results, as reported by Investing.com
Infineon Technologies said on November 10 that it expects revenue from data centers to approach €4 billion in its 2027 fiscal year, close to double the roughly €2.2 billion it booked in fiscal 2026. The German chipmaker, which makes the power semiconductors that convert and regulate electricity inside AI server racks, reported a record fourth quarter and forecast revenue growth of more than 20% for the coming year.
The numbers
Revenue in the quarter that ended in September was €4.706 billion, up 13% from the previous quarter, according to the company's results release and its earnings call. The segment result margin, Infineon's main profit measure, rose to 23.8% from 19.1% in the third quarter.
For the full 2026 fiscal year, revenue was €16.353 billion, up 12%. The segment result margin was 19.7%. On the call, management said growth would have been 15% at constant exchange rates.
Revenue from what Infineon calls dedicated AI power products reached €1.7 billion in fiscal 2026, part of the broader data center figure of about €2.2 billion.
The outlook
For fiscal 2027, which runs to September 2027, Infineon forecast revenue of about €20 billion, growth of more than 20%. It expects the segment result margin to reach the mid-20s percent range and plans investments of €3.0 billion to €3.5 billion. The guidance assumes an average exchange rate of $1.15 per euro.
For the first quarter, which ends in December, the company guided to revenue of about €4.6 billion, 27% higher than a year earlier, with a segment result margin of around 23%.
The release names data centers, power infrastructure and software-defined vehicles as the drivers of next year's growth.
Why power chips are a data center story
Every AI accelerator needs electricity delivered at very low voltage and very high current, and every step from the grid connection to the chip loses some energy as heat. Power semiconductors from companies like Infineon handle those conversions. As racks of GPUs draw more power, server makers need more of these parts per rack and more efficient ones, which is why Infineon now reports data center sales as a growth line of its own.
The numbers here come from Infineon's release and from Investing.com's reports on the company's results slides and earnings call; where Investing.com rounded a figure, we used the company's exact number.
Why it matters
Infineon's forecast is one of the clearest signs yet that AI spending is spreading beyond GPU and memory makers to the companies that supply the electrical plumbing of data centers. A near doubling of data center revenue in one year shows how much of the build-out depends on getting power into the racks, not just on the chips that run the models. For more on the other bottleneck in AI servers, see our explainer on HBM memory, and for the CPU side, AMD's Venice launch.
Sources
- Infineon closes FY 2026 with record quarter; expects revenue growth of more than 20 percent, Infineon Technologies, November 10, 2026
- Infineon FY26 slides: AI boom drives record results, €20bn FY27 target, Investing.com, November 10, 2026
- Earnings call transcript: Infineon lifts outlook on record Q4, Investing.com, November 10, 2026
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