ON Semiconductor’s price target raised to $108
ON Semiconductor Corp delivered stronger-than-expected second-quarter earnings, with third-quarter guidance above expectations.
The company’s AI data center revenue is on track to more than double in 2026, with gross margins expected to be between 40% and 42% in the third quarter.
The company’s price target was raised to $108 from $100, with a Neutral rating maintained due to concerns over market share losses in industrial, automotive, and analog segments.
ON Semiconductor’s revenue growth is driven by improving momentum across AI data centers, industrial markets, electric vehicles, and China, with a favorable product mix and higher factory utilization.