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.

Profit fell for German semiconductor maker Infineon Technologies in its first quarter compared to the same period of the previous year. Infineon reported on Tuesday that its first-quarter profit fell 58% to €246 million ($254 million) from the previous year's €587 million.

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.