Analysts see 43% upside for ON stock as AI data center revenue doubles and free cash flow quadruples in 2026.
ON Semiconductor (NASDAQ:ON) received a $115.02 price target, implying 43.05% upside from its current $80.40 level, driven by a quadrupling of free cash flow and a $6 billion buyback authorization. The firm cited AI data center revenue doubling in 2026 as a key growth catalyst.
The stock has retreated 9.7% over the past week but remains up 48.48% year to date. Q2 2026 results showed non-GAAP EPS of $0.74, beating estimates, while revenue grew 9.2% year over year to $1.60 billion. Power Solutions Group revenue surged 19% to $829 million, and free cash flow reached $425.4 million, four times the prior-year figure.
Analysts noted that peers like Texas Instruments and Microchip have validated the sector’s recovery, supporting ON’s valuation. The stock trades 16% below its 52-week high of $134.92, offering a potential entry point for investors.