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Infineon Raises AI Power-Supply Goal as Profit Drops, Cautions on Auto Demand

Management guides to moderate growth in 2026, citing currency headwinds, elevated inventories, auto demand volatility.

Overview

  • For fiscal 2024/25, net profit came in at about €1 billion, down roughly 22% year over year, with revenue slipping 2% to €14.7 billion on weakness in automotive and renewable-energy chips and a weaker dollar.
  • Sales of power-supply components for AI data centers exceeded €700 million last year after nearly tripling, and the company lifted its 2026 sales target for that segment to €1.5 billion.
  • Infineon estimates a 30–40% share in AI data-center power supplies and projects the total addressable market to reach €8–12 billion by 2030.
  • Automotive demand remains muted with short-term ordering and a risk of year-end destocking, and the CEO urged larger safety buffers after the Nexperia export disruption, which has since eased.
  • Inventory sits about 30 days above the company’s target, tying up roughly €1 billion of capital, and management still expects moderate growth in fiscal 2025/26 as the shares rose about 6.5% on the outlook.