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.
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.