In early February, German chipmaker Infineon raised its full-year earnings forecast to 25% from 24% while keeping its revenue forecast at €15.5 billion. Now the management of this company considers it possible lift Margin guidance for the second quarter at 29% and revenue guidance for the year “well above” €15.5 billion.
In the second business quarter, the results of which Infineon will only present on May 4th, the company expects revenues of more than 4 billion euros instead of the previous 3.9 billion euros. The increase in profit margin to 28-29% in the second quarter is supported by higher prices for the company’s products and lower energy costs, according to Infineon. The company does not specify how the profit margin will improve at the end of the full year, but emphasizes that this will happen.
Around 45% of Infineon’s total revenue comes from the automotive segment, so the growing demand for this type of electronics makes the company optimistic about the future. The market for components for industrial automation is also actively developing. Infineon chips used in data centers will certainly also be in demand, because many market participants are pinning particular hopes on an upturn in demand with the fashion for generative artificial intelligence systems such as ChatGPT.