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.

German chip company Infineon has beaten its own revenue forecast for its first quarter fiscal year 2025 and raised its outlook for the year.

Infineon has been able to outperform peers this quarter because it’s supplied chips to data centres, in demand thanks to the boom in artificial intelligence, and because it won market share from rivals in the automotive industry.

The stock jumped after the group raised its sales forecasts as it expects to benefit from a stronger U.S. dollar, while sales fell less than feared amid solid demand for AI chips.