Infineon Raises Forecast Despite Weak Demand and Profit Decline

The semiconductor company benefits from a weaker euro, but lingering challenges like low demand and potential U.S. tariffs loom.

Infineon reported an 8% year-over-year revenue decline to €3.4 billion in its first fiscal quarter, with demand weak across key sectors.
Net profit dropped by more than 50% compared to the same period last year, falling to €246 million, though it avoided a loss seen in the previous quarter.
The company raised its revenue forecast for the fiscal year, citing favorable currency effects from the weaker euro, as much of its business is conducted in U.S. dollars.
Infineon expects demand to gradually recover as customers reduce their excess inventory accumulated during the chip supply crisis.
CEO Jochen Hanebeck warned of potential risks from U.S. tariff policies under Donald Trump, which could impact demand but remain uncertain in scale.