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(Bloomberg) -- Infineon Technologies AG shares surged the most in nine months after the chipmaker forecast revenue that beat analyst estimates, a bright spot in an industry that’s been grappling with a prolonged slump.
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The German chipmaker raised its full-year outlook and is now expecting flat to slightly higher fiscal 2025 revenue, versus a slight decline previously, it said in a statement on Tuesday.
For the current quarter ending March, sales should remain about the same as a year earlier at €3.6 billion ($3.7 billion). That in part reflects currency effects and surpasses the average €3.4 billion analyst estimate.
Infineon has been able to outperform peers this quarter because it’s supplied chips to data centers, in demand thanks to the boom in artificial intelligence, and because it won market share from rivals in the automotive industry, Chief Executive Officer Jochen Hanebeck said on a media call after the results.
Infineon shares rose 11% to €34.58 at 10:58 a.m. in Frankfurt after earlier jumping as much as 13%, the biggest intraday gain since May. Shares have risen about 3.3% in the past 12 months.
Rival NXP Semiconductors NV gave a disappointing forecast on Monday, missing analysts’ estimates. Texas Instruments Inc. and STMicroelectronics NV both reported lower-than-expected outlooks in their financial results last week. STMicro may cut as much as 6% of its workforce to reduce costs and cope with the downturn, Bloomberg News reported on Friday.
Infineon’s Chief Financial Officer Sven Schneider warned of uncertainty stemming from Trump administration tariffs, particularly if they ignite a cycle of retaliation.
“To be very clear, a major escalation of tariffs is not included in our guidance,” Schneider told Bloomberg Television. “Because we are still not giving up and advocating for free trade. An escalation of tariffs and counter-tariffs would be a negative.”
For the full year, Infineon expects a gross margin of 40%, slightly below its first-quarter margin of 41%, which had been elevated by a one-time customer payment. “The longer the dollar stays higher,” the more likely Infineon was to deliver a higher margin, Schneider said in a call with analysts.
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