Demand for power in AI datacenters is driving a recovery in power semiconductor makers' performance. Earnings reported by U.S.-based onsemi and Germany-based Infineon Technologies in early May 2026 reflected the same underlying structure.
onsemi: PSG Leads with +14% YoY Growth, AI Power Revenue More Than Doubles
onsemi's Q1 2026 (January–March) revenue was $1.313 billion, up 5% year-over-year (Source: SEC EDGAR Form 8-K, May 4, 2026). By segment, the Power Solutions Group (PSG) led overall growth at $736.6 million, up 14% year-over-year. PSG encompasses power management ICs and rectifier devices for AI datacenters.
Revenue from AI datacenters more than doubled year-over-year and accelerated 30% quarter-over-quarter. onsemi noted expanding adoption among major hyperscalers and multiple chip vendors.
The Automotive & Industrial segment (AMG) remained soft at $540.4 million, down 5% year-over-year, though momentum toward next-generation EVs continues. The company is expanding collaboration with Chinese EV makers Geely and NIO on SiC (EliteSiC) for 900V EV architectures, rolling out products targeting high-efficiency charging and extended range. Q2 guidance of $1.535–$1.635 billion (midpoint up 12% year-over-year) points to an accelerating recovery.
Infineon: €3.812B Revenue, Full-Year Outlook Raised
Infineon's FY2026 Q2 (October 2025–March 2026) revenue was €3.812 billion, with a segment margin of 17.1% (Source: Infineon official press release INFXX202605-082, May 6, 2026). Q3 guidance of approximately €4.1 billion (up ~8% quarter-over-quarter) signals accelerating growth.
The full-year FY2026 revenue outlook was upgraded from "moderate growth" to "significant growth," with annual revenue projected to exceed €1.6 billion. CEO Jochen Hanebeck described demand for power supply solutions targeting AI datacenters as "exceptionally strong." The company will reorganize from four business divisions to three — Automotive, Power Systems, and Edge Systems — starting in FY2026 Q4.
Update: onsemi's Q2 results further confirm the shift to AI power
onsemi's Q2 2026 results showed revenue up 9% year-over-year to $1.604 billion, with free cash flow surging 4x year-over-year to $425.4 million. The company expects AI data center revenue to more than double year-over-year for the full year 2026. On the product side, it launched "GaNEXUS," a GaN power portfolio spanning 40V-650V; on the business side, it announced the acquisition of Synaptics to expand into connected compute, an expanded role in the NVIDIA MGX ecosystem, and a secured automotive power supply deal for the Rivian R2 platform. The strengthening of onsemi's position across both AI power and EV power is now backed by more concrete numbers and partnerships than at the Q1 stage.
Implications: Time to Realign Design and Procurement Decisions Across AI and Automotive
Both sets of earnings share a common message: the power semiconductor market recovery is advancing along two axes — AI datacenters and EVs. On the AI datacenter side, the market is expanding rapidly — onsemi's AI power revenue more than doubled in one year — intensifying supplier competition in power conversion and rectifier devices.
Automotive is still in recovery, but early investment in next-generation architectures continues, including Infineon gaining share in software-defined vehicles (SDV) and onsemi's 900V EliteSiC rollout. Power and design teams are now at a point where managing procurement plans separately for AI infrastructure and automotive product lines is no longer optional.