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Infineon Technologies expects data center segment revenue to increase from €1.5 billion to €2.5 billion in the upcoming fiscal year, driven by strong demand for AI technology. The company is raising its investment in data center technologies to about €2.7 billion.

The data center business is projected to generate around €1.5 billion this year, contributing approximately 10% of total sales. The growth in AI demand is helping Infineon offset a slowdown in the automotive sector, which still accounts for about half of its revenue.

Infineon is also acquiring AMS Osram's sensor business for $673 million, which will add around €230 million to this year's sales. For the current quarter, Infineon expects revenues around €3.8 billion, in line with analyst estimates.