Infineon expects steep growth in AI data center revenue, betting big on power chips

Infineon Technologies is going all-in on the idea that AI data centers need a lot of electricity, and someone has to make the chips that manage all that power. That someone, the company is betting, will increasingly be Infineon. The German semiconductor giant is projecting €1.5 billion in AI-related revenue for fiscal 2026, with plans to nearly double that figure to €2.5 billion by 2027. For context, that’s roughly two-thirds growth in a single year. The power behind the AI boom Infineon’s power chip segment is the primary engine behind its AI data center growth. AI data center revenue currently represents approximately 10% of Infineon’s total sales for fiscal 2026. The company just posted fiscal Q2 2026 revenue of €3.812 billion, a 6% increase year-over-year. The addressable market for AI power solutions is expected to reach between €8 billion and €12 billion by the end of the decade. Putting money where the projections are Infineon announced an additional €500 million in manufacturing capacity investment for 2026, bringing its total planned capital expenditure to €2.7 billion. The company raised its full-year guidance in May 2026 on the back of strengthening demand in the AI sect...