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3 Robotics Stocks Under $10: Value, Momentum, or Bet?onsemi NASDAQ: ON executives said demand conditions have improved across the company’s end markets, with automotive appearing to have reached a bottom in the first quarter and artificial intelligence data-center demand providing a significant source of growth.

Speaking at the Deutsche Bank Technology Conference, Chief Executive Officer Hassane El-Khoury said the company is now shipping to “natural demand” across its markets, which he characterized as an equilibrium rather than necessarily strong demand. He cited book-to-bill above parity, longer visibility into 2027 and, in some cases, 2028, and extending lead times as signs of improving market conditions.

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MarketBeat Week in Review – 08/03 - 08/07El-Khoury said onsemi has capacity in place and does not anticipate a major capital-expenditure cycle. However, he cautioned that a sharp demand recovery could create constraints, particularly in technologies shared by automotive and AI data-center customers. The company previously said it made allocation trade-offs between automotive and AI data-center demand in certain power technologies.

“If we get orders today and they need them in October, November, and you get a snapback of orders,” El-Khoury said, lead times could extend and allocation could return. He said such a scenario could be more challenging than the COVID-era shortage environment because AI data centers are now a major consumer of manufacturing capacity.

Utilization, inventory and pricing The AI Chip Stock Making a Quiet Move Toward DominanceChief Financial Officer Thad Trent said onsemi’s factory utilization rose to 83% in the most recent quarter from 68% at the end of last year. He said fully utilized operations would be in the 92% to 93% range. The company’s wafer-to-finished-product cycle time is typically four to six months, while inventory held in die banks can be launched into back-end production on a roughly two-week cycle.

Trent said channel inventory is within onsemi’s targeted range of 10 to 11 weeks. He added that automotive customers generally appear to have worked through inventory digestion, though some remain “dangerously low” on inventory. The company also described its balance-sheet inventory as healthy.

On pricing, Trent said onsemi implemented a first price action in April and is undertaking another round. He said the moves are primarily intended to pass through inflation-related input costs that have already affected the company’s profit and loss statement. The company is also selectively raising prices on constrained products and supply lanes.

AI data center and power infrastructure El-Khoury said onsemi’s AI data-center revenue is generated across the “power tree,” from high-voltage power products closer to the electrical plug through smart power stages near XPUs. The company raised its 2026 outlook for the business from doubling revenue year over year to more than doubling it, after the first two quarters exceeded its prior expectations.

The CEO said the business is diversified across customers and regions, while the company’s go-to-market strategy varies by the location of its products in the data-center power architecture. Products placed directly on boards generally involve engagements with hyperscalers or GPU and XPU vendors, while other power-conversion products are sold through power-system providers.

El-Khoury also highlighted a prospective transition to 800-volt architecture in data centers beginning around late 2027 or early 2028. He said onsemi has more than five years of experience with 800-volt systems in automotive and is sampling vertical gallium nitride, or GaN, products for both AI data-center and automotive uses.

According to El-Khoury, onsemi’s vertical GaN development was primarily organic, supplemented by a small tuck-in acquisition that added intellectual property. Its vertical GaN manufacturing facility is located in Syracuse, New York. The company also works with Innoscience and GlobalFoundries on lateral GaN, while developing controls and drivers internally through its Treo platform.

Beyond data-center walls, El-Khoury said energy infrastructure is benefiting from an “AI halo” tied to the buildout of AI computing infrastructure. He said onsemi’s energy-infrastructure business is growing 40% year over year and that secular applications represent about 60% of its industrial business. Areas cited included energy storage systems and solid-state transformers, which could gain electronics content as the industry moves toward 800-volt systems.

Automotive, robotics and Synaptics In automotive, El-Khoury said onsemi expects roughly 6% year-over-year growth despite vehicle production, or SAAR, being flat to slightly down. The company continues to target high-single-digit growth above SAAR through increased semiconductor content. He pointed to electrification, including plug-in hybrids using silicon carbide, as well as software-defined vehicle architectures and zonal systems.

The company said its Treo 65-nanometer mixed-signal analog platform supports products including automotive Ethernet connectivity, smart-power devices and controllers. El-Khoury said Treo-based products carry gross margins in the 60% to 70% range and that onsemi has discussed a $1 billion revenue target for the platform by 2030.

El-Khoury also described robotics as an existing growth area within physical AI, particularly factory automation and autonomous mobile robots. onsemi supplies power, sensing and control products, including ultrasonic, inductive and image sensors. He said humanoid robotics could see volume growth in one to two years, but is not expected to immediately outweigh existing robotics segments.

Regarding Synaptics, El-Khoury said the planned combination would add connected-compute capabilities to onsemi’s power, sensing and control portfolio. He said the companies expect the transaction to close in mid-2027 and that Synaptics also offers tactile-sensing technology relevant to robotics.

Margin outlook and capital spending Trent said onsemi’s near-term gross-margin recovery is expected to be driven chiefly by higher utilization. He estimated that each percentage point of utilization improvement contributes roughly 25 to 30 basis points of gross margin, and said under-absorption represented a 650-basis-point headwind in the second quarter.

He also cited approximately 200 basis points of potential benefit from manufacturing-footprint initiatives, 200 basis points from a favorable product mix including Treo-based products, and about 200 basis points as bridge inventory associated with prior fab divestitures is depleted and production is brought into onsemi’s own footprint.

The company said it completed its planned exit from $900 million of annualized low-margin business at the end of the second quarter. Trent said onsemi is now in maintenance mode for capital spending, with CapEx expected to remain at a mid-single-digit percentage of revenue for several years. He said revenue would need to increase about 30% from current levels before the company would need to consider adding manufacturing capacity.

About onsemi (NASDAQ:ON)onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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ON Semiconductor (NASDAQ:ON | ON Price Prediction) currently trades at $81.17, while the Wall Street consensus price target sits at $108.88, leaving roughly 34% of implied upside. The Street-high target of Susquehanna Financial Group’s Christopher Rolland carries a $150 target points to roughly 85% of upside from here.

The Arizona-based chipmaker builds power management, analog and sensing silicon for electric vehicles, industrial automation and AI data center power delivery. Wall Street has been paying attention because AI data center revenue is now expected to more than double in 2026, a mix shift that could redefine the company’s growth algorithm after a punishing cyclical trough.

A Semi Selloff Erased the Spring Rally ON shares have fallen 13.46% over the past month and now trade nearly 40% below the 52-week high of $134.92 set in early June, unwinding a monster rally off the 2025 lows.

A broader semiconductor selloff hit the analog and power complex in late July. Concerns included increased competition from China, doubts about the sustainability of AI-related demand, and new U.S. tariffs impacting the supply chain. Skepticism around SiC expansion execution and automotive capacity underutilization layered on top.

The irony: Q2 2026 was a clean beat. Revenue of $1.60 billion grew 9.2% year over year, non-GAAP EPS of $0.74 and free cash flow of $425.4 million grew 300.94% year over year all topped consensus. The market did not care.

Why Susquehanna Sees 85% Upside Rolland’s bull thesis rests on three pillars the market appears to be discounting:

The first is silicon carbide and Treo dominance, with multi-year content-per-vehicle expansion tied to 800V EV powertrains. The second is AI data center power acceleration, where ON’s PMICs, smart power stages and high-efficiency MOSFETs are designed into next-generation server racks including NVIDIA Blackwell and Rubin platforms. The third is industrial and automotive recovery, where fab utilization and long-term supply agreements should provide operating leverage.

Of the 29 analysts covering ON, 1 rates it Strong Buy, 10 rate it Buy, and 18 rate it Hold, with no Sell ratings. The average $108.88 target implies meaningful upside, but the ratings mix flags conviction fatigue after 2025’s brutal cycle.

Management guides Q3 revenue of $1.65 billion to $1.75 billion and non-GAAP EPS of $0.81 to $0.93 with continued margin expansion. Design wins include the NVIDIA MGX ecosystem, a Great Wall platform deal for EliteSiC and silicon MOSFETs, and the Rivian R2. The planned Synaptics acquisition adds connected compute exposure at accretive margins.

The Peer Group Sold Off Together, But ON Fell Hardest The analog and power complex fell as a group, but ON took the deepest hit on a one-month basis. Every close peer sits below its consensus target.

NXP Semiconductors (NASDAQ:NXPI) has dropped 15.54% over the past month to $239.71, against a consensus target of $311.10 for roughly 30% implied upside. Coverage is heavily Buy-tilted at 6 Strong Buy, 17 Buy, 6 Hold and 1 Sell.

Microchip Technology (NASDAQ:MCHP) has held up better, down 0.94% over the past month at $84.69 versus a $111.71 consensus target, implying about 32% upside. Ratings skew Buy at 2 Strong Buy, 17 Buy and 6 Hold.

STMicroelectronics (NYSE:STM) has fallen 18.15% over the past month to $56.10, versus a $71.52 target for roughly 27% upside. Ratings are more balanced at 1 Strong Buy, 7 Buy and 7 Hold.

The largest analyst-implied upside in this peer set sits with ON. The market is treating ON as the highest-beta name in a group already trading below fair value, driven by sentiment rather than company-specific damage.

Where the Numbers Land ON currently trades at $81.17. The consensus target of $108.88 across 29 analysts implies roughly 34% upside; the Susquehanna Street-high of $150 implies roughly 85%.

Year to date, ON is up 49.9%, well ahead of the 13.39% gain in the S&P 500. Over one year, shares are up 70.56%. The 13.46% one-month drop is noise inside the signal.

Shares trade at a forward P/E of 25, elevated for a cyclical semi but reasonable if AI data center revenue truly doubles in 2026.

My Take: Watching the AI Data Center Ramp The bull case strengthens if AI data center revenue delivers on the doubling guide and SiC content per vehicle expands as EV architectures move to 800V. Gross margins would climb toward 40%-plus, operating leverage compounds, and Rolland’s $150 target starts to look conservative.

The bear case gains traction if this becomes a value trap. China competition could compress SiC pricing, tariffs disrupt supply, automotive underutilization drags margins, and the Synaptics deal creates integration risk. Analog and Mixed-Signal declined 2% year over year in Q2, so recovery is uneven.

On balance, lean bullish. The FCF inflection is real, AI data center wins are named customers rather than pipeline, and the Street-wide dislocation looks more like sentiment than fundamentals. Rolland’s 85% call is aggressive, but the consensus 34% upside strikes me as the more defensible base case for patient investors.

Contact [email protected] for any questions or corrections.

SCOTTSDALE, Ariz., Aug. 03, 2026 (GLOBE NEWSWIRE) -- onsemi (the “Company”) (Nasdaq: ON) today announced its second quarter 2026 results with the following highlights:

Revenue of $1,604 million, increasing 9% year-over-yearGAAP gross margin of 38.4% and non-GAAP gross margin of 39.3%GAAP operating margin of 16.1% and non-GAAP operating margin 20.8%GAAP diluted earnings per share of $0.56 and non-GAAP diluted earnings per share $0.74Cash from operations increased by 150% and free cash flow of $425.4 million quadrupled year-over-yearShare repurchases of $332 million, bringing year-to-date shareholder returns to approximately 105% of free cash flow “We delivered revenue, gross margin and earnings per share above the midpoint of guidance, reflecting strengthening demand, particularly across AI-driven applications, and growing customer adoption of our differentiated solutions, including Treo and our high voltage power solutions,” said Hassane El-Khoury, President and CEO of onsemi. “AI data center remains our fastest-growing business, and we now expect revenue to more than double in 2026, demonstrating the strength of our intelligent power portfolio and growing customer adoption across the power tree.”

“Our results demonstrate the operating leverage in our business model,” said Thad Trent, EVP and CFO of onsemi. “Year-over-year earnings per share grew four times faster than revenue, driven by gross margin expansion and disciplined cost management. Free cash flow margin expanded from approximately 7% to 27% year-over-year, reflecting the strength of our operating model, and as demand continues to improve, we are increasingly confident in our ability to drive profitable growth and long-term shareholder value.”

Business Highlights:

Announced the planned acquisition of Synaptics, expanding capabilities in connected compute at accretive gross margins to support a market expansion while complementing leadership in power and sensingExpanded role in NVIDIA MGX ecosystem as AI infrastructure power demands accelerateSecured strategic AI data center platform wins with Great Wall, a leading China cloud infrastructure power supplier, expanding EliteSiC and silicon MOSFETs and controller contentLaunched ​​GaNEXUS​, onsemi's gallium nitride power portfolio spanning 40V to 650V, serving AI data centers, robotics, and industrial infrastructure applicationsExtended leadership in automotive zonal architecture and on-board charging with Rivian’s R2 platform with power solutions that enable efficient power distribution and conversion Selected financial results for the quarter are shown below with comparable periods (unaudited):

 GAAP Non-GAAP(Revenue and Net Income in millions)Q2 2026
 Q1 2026
 Q2 2025
  Q2 2026
 Q1 2026
 Q2 2025
 Revenue$1,603.5 $1,513.3 $1,468.7  $1,603.5 $1,513.3 $1,468.7 Gross Margin 38.4%  38.5%  37.6%   39.3%  38.5%  37.6% Operating Margin 16.1% (3.5)%  13.2%   20.8%  19.1%  17.3% Net Income (loss) attributable to ON Semiconductor Corporation$226.8 ($33.4) $170.3  $293.8 $253.1 $221.3 Diluted Earnings (loss) Per Share$0.56 ($0.08) $0.41  $0.74 $0.64 $0.53                      Revenue Summary
(in millions)
(Unaudited)
       Quarters Ended
   Business SegmentQ2 2026 Q1 2026 Q2 2025  Sequential
ChangeYear-over-
Year ChangePSG$829.0 $736.6 $698.2  13%19%AMG 545.7  540.4  555.9  1%(2)%ISG 228.8  236.3  214.6  (3)%7%Total$1,603.5 $1,513.3 $1,468.7  6%9%                THIRD QUARTER 2026 OUTLOOK

The following table outlines onsemi’s projected third quarter of 2026 GAAP and non-GAAP outlook.

 Total onsemi
GAAPSpecial
Items **Total onsemi
Non-GAAP***Revenue$1,650 to $1,750 million-$1,650 to $1,750 millionGross Margin39.9% to 41.9%0.1%40.0% to 42.0%Operating Expenses$318 to $333 million$15 million$303 to $318 millionOther Income and Expense (including interest), net($18 million)-($18 million)Diluted Earnings Per Share$0.79 to $0.91$0.02$0.81 to $0.93Diluted Shares Outstanding *402 million7 million395 million *Diluted shares outstanding can vary as a result of, among other things, the vesting of restricted stock units, the incremental dilutive shares from the convertible notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Notes, $103.87 for the 0.50% Notes, and $161.30 for the 2031 0% Notes, the non-GAAP diluted share count and non-GAAP net income per share include the anti-dilutive impact of the hedge transactions entered concurrently with the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes, $103.87 and $156.78 for the 0.50% Notes, and $161.30 and $211.54 for the 2031 0% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, $156.78 for the 0.50% Notes, and $211.54 for the 2031 0% Notes, the dilutive impact of the warrants issued concurrently with such notes is included in the diluted shares outstanding. GAAP and non-GAAP diluted share counts are based on either the previous quarter's average stock price or the stock price as of the last day of the previous quarter, whichever is higher. **Special items may include: amortization of acquisition-related intangibles; expensing of appraised inventory fair market value step-up; restructuring-related cost of revenue charges; non-recurring facility costs; in-process research and development expenses; restructuring, asset impairments and other, net; goodwill impairment charges; gains and losses on debt prepayment; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary. These special items are out of our control and could change significantly from period to period. As a result, we are not able to reasonably estimate and separately present the individual impact or probable significance of these special items, and we are similarly unable to provide a reconciliation of the non-GAAP measures. The reconciliation that is unavailable would include a forward-looking income statement, balance sheet and statement of cash flows in accordance with GAAP. For this reason, we use a projected range of the aggregate amount of special items in order to calculate our projected non-GAAP operating expense outlook. ***We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our releases, provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names.   TELECONFERENCE

onsemi will host a conference call for the financial community at 5 p.m. Eastern Time (ET) on August 3, 2026 to discuss this announcement and onsemi’s second quarter 2026 results. The Company will also provide a real-time audio webcast of the teleconference on the Investor Relations page of its website at http://www.onsemi.com. The webcast replay will be available at this site approximately one hour following the live broadcast and will continue to be available for approximately 30 days following the conference call. Investors and interested parties can also access the conference call by pre-registering here.

About onsemi

onsemi (Nasdaq: ON) delivers intelligent power and sensing technologies that enable electrification, energy efficiency, safety, and automation across automotive, industrial, and AI data center end-markets. With a highly differentiated and innovative product portfolio, onsemi helps customers solve complex challenges to achieve higher efficiency, improved performance, and lower system cost, while supporting a safer, cleaner, and more energy-efficient world. onsemi is part of the S&P 500® index. Learn more about onsemi at www.onsemi.com.

onsemi and the onsemi logo are trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company references its website in this news release, information on the website is not to be incorporated herein.

Krystal HeatonParag AgarwalDirector, Head of Public RelationsVice President - Investor Relations & Corporate Developmentonsemionsemi(480) 242-6943(602) [email protected]@onsemi.com   This document includes “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of onsemi, including financial guidance for the third quarter of 2026. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “anticipates,” “should” or similar expressions or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect our future results or events are described under Part I, Item 1A “Risk Factors” in the 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 9, 2026 (the “2025 Form 10-K”) and from time to time in our other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, which speaks only as of the date made, except as may be required by law. Investing in our securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this document, our 2025 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

    ON SEMICONDUCTOR CORPORATIONUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share and percentage data)

     Quarters Ended Six Months Ended July 3, 2026 April 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Revenue$1,603.5  $1,513.3  $1,468.7  $3,116.8  $2,914.4 Cost of revenue 987.2   930.2   916.8   1,917.4   2,068.7 Gross profit 616.3   583.1   551.9   1,199.4   845.7 Gross margin 38.4%  38.5%  37.6%  38.5%  29.0%Operating expenses:         Research and development 140.8   144.3   143.8   285.1   307.9 Selling and marketing 63.3   63.0   63.3   126.3   131.6 General and administrative 101.9   89.4   91.2   191.3   175.6 Amortization of intangible assets 10.5   10.5   11.0   21.0   22.4 Restructuring, asset impairments and other, net 41.2   329.3   49.2   370.5   588.5 Total operating expenses 357.7   636.5   358.5   994.2   1,226.0 Operating income (loss) 258.6   (53.4)  193.4   205.2   (380.3)Other income (expense), net:         Interest expense (13.7)  (12.7)  (17.9)  (26.4)  (35.9)Interest income 17.4   17.7   25.2   35.1   51.8 Other income 8.6   3.8   1.5   12.4   5.6 Other income (expense), net 12.3   8.8   8.8   21.1   21.5 Income (loss) before income taxes 270.9   (44.6)  202.2   226.3   (358.8)Income tax (provision) benefit (43.4)  11.7   (30.5)  (31.7)  45.3 Net income (loss) 227.5   (32.9)  171.7   194.6   (313.5)Less: Net income attributable to non-controlling interest (0.7)  (0.5)  (1.4)  (1.2)  (2.3)Net income (loss) attributable to ON Semiconductor Corporation$226.8  $(33.4) $170.3  $193.4  $(315.8)          Net income (loss) per share of common stock attributable to ON Semiconductor Corporation:         Basic$0.58  $(0.08) $0.41  $0.49  $(0.76)Diluted$0.56  $(0.08) $0.41  $0.48  $(0.76)Weighted average common shares outstanding:         Basic 390.3   394.1   414.6   392.2   418.0 Diluted 404.4   394.1   414.9   401.5   418.0                      ON SEMICONDUCTOR CORPORATIONUNAUDITED CONSOLIDATED BALANCE SHEETS

(in millions)

       July 3, 2026 April 3, 2026 December 31, 2025Assets     Cash and cash equivalents$3,514.5  $2,003.6  $2,147.6 Short-term investments 350.0   400.0   400.0 Receivables, net 897.2   862.8   908.0 Inventories 2,047.5   2,049.2   1,989.6 Assets held-for-sale 31.4   40.4   25.0 Other current assets 441.2   419.6   352.9 Total current assets 7,281.8   5,775.6   5,823.1 Property, plant and equipment, net 2,924.9   3,035.6   3,369.0 Goodwill 1,687.6   1,679.9   1,679.9 Intangible assets, net 329.4   332.2   343.9 Deferred tax assets 1,014.3   933.2   929.1 ROU financing lease assets —   —   23.1 Other assets 247.1   254.3   356.0 Total assets$13,485.1  $12,010.8  $12,524.1 Liabilities and Stockholders’ Equity     Accounts payable$498.3  $486.1  $572.3 Accrued expenses and other current liabilities 801.0   698.7   714.9 Current portion of financing lease liabilities 0.5   0.5   0.5 Current portion of long-term debt 802.1   —   — Total current liabilities 2,101.9   1,185.3   1,287.7 Long-term debt 3,657.3   2,982.9   2,980.5 Deferred tax liabilities 46.8   46.5   41.7 Long-term financing lease liabilities 22.8   23.1   23.8 Other long-term liabilities 417.8   452.2   498.5 Total liabilities 6,246.6   4,690.0   4,832.2 ON Semiconductor Corporation stockholders’ equity:     Common stock 6.3   6.3   6.2 Additional paid-in capital 5,632.8   5,582.5   5,538.6 Accumulated other comprehensive loss (67.1)  (61.7)  (55.5)Accumulated earnings 8,435.3   8,208.5   8,241.9 Less: Treasury stock, at cost (6,788.6)  (6,433.9)  (6,057.9)Total ON Semiconductor Corporation stockholders’ equity 7,218.7   7,301.7   7,673.3 Non-controlling interest 19.8   19.1   18.6 Total stockholders’ equity 7,238.5   7,320.8   7,691.9 Total liabilities and stockholders’ equity$13,485.1  $12,010.8  $12,524.1                                   Quarters Ended Six Months Ended July 3, 2026 April 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Cash flows from operating activities:         Net income (loss)$227.5  $(32.9) $171.7  $194.6  $(313.5)Adjustments to reconcile net income (loss) to net cash provided by operating activities:         Depreciation and amortization 141.3   286.7   156.4   428.0   324.6 Gain on sale and disposal of fixed assets (0.3)  (1.1)  (5.8)  (1.4)  (5.8)Amortization of debt discount and issuance costs 3.8   2.9   2.8   6.7   5.7 Share-based compensation 37.4   37.3   34.4   74.7   68.3 Non-cash asset impairment charges 16.3   147.0   40.6   163.3   472.1 Change in deferred tax balances (12.8)  2.7   (18.5)  (10.1)  (32.2)Other 1.9   (2.2)  2.5   (0.3)  4.3 Changes in assets and liabilities 44.6   (201.3)  (199.8)  (156.7)  263.1 Net cash provided by operating activities 459.7   239.1   184.3   698.8   786.6 Cash flows from investing activities:         Payments for acquisition of property, plant, and equipment (34.3)  (21.9)  (78.2)  (56.2)  (225.8)Proceeds from sale of property, plant and equipment 7.6   1.0   6.5   8.6   6.7 Purchase of short-term investments (350.0)  (300.0)  (300.0)  (650.0)  (550.0)Proceeds from the maturity of short-term investments 400.0   300.0   250.0   700.0   550.0 Payments for acquisition of a business, net of cash acquired (13.0)  —   —   (13.0)  (117.5)Other (3.0)  4.2   —   1.2   — Net cash provided by (used in) investing activities 7.3   (16.7)  (121.7)  (9.4)  (336.6)Cash flows from financing activities:         Proceeds for common stock issuance under the ESPP 5.3   6.7   5.3   12.0   10.6 Payment of tax withholding for RSUs (18.6)  (26.9)  (2.7)  (45.5)  (25.1)Repurchase of common stock (344.8)  (345.7)  (302.3)  (690.5)  (602.4)Issuance and borrowings under debt agreements 1,473.7   —   —   1,473.7   — Reimbursement of debt issuance and other financing costs 3.4   —   —   3.4   — Payment of debt issuance and other financing costs (4.2)  —   —   (4.2)  — Payment for purchase of bond hedges (351.6)  —   —   (351.6)  — Proceeds from issuance of warrants 281.0   —   —   281.0   — Payment of finance lease obligations (0.1)  (0.1)  (0.4)  (0.2)  (0.8)Net cash provided by (used in) financing activities 1,044.1   (366.0)  (300.1)  678.1   (617.7)Effect of exchange rate changes on cash, cash equivalents and restricted cash (0.3)  (0.3)  1.9   (0.6)  3.9 Net increase (decrease) in cash, cash equivalents and restricted cash 1,510.8   (143.9)  (235.6)  1,366.9   (163.8)Beginning cash, cash equivalents and restricted cash 2,005.1   2,149.0   2,765.2   2,149.0   2,693.4 Ending cash, cash equivalents and restricted cash$3,515.9  $2,005.1  $2,529.6  $3,515.9  $2,529.6                         Quarters Ended Six Months Ended   July 3, 2026 April 3, 2026 July 4, 2025 July 3, 2026 July 4, 2025Reconciliation of GAAP to non-GAAP gross profit:         GAAP gross profit$616.3  $583.1  $551.9  $1,199.4  $845.7  Special items:          a)Restructuring-related inventory and other charges 13.4   (1.0)  (1.9)  12.4   281.5  b)Amortization of intangible assets 1.2   1.2   1.3   2.4   2.6  c)Amortization of fair market value step-up of inventory —   —   1.2   —   1.2   Total special items 14.6   0.2   0.6   14.8   285.3 Non-GAAP gross profit$630.9  $583.3  $552.5  $1,214.2  $1,131.0 Reconciliation of GAAP to non-GAAP gross margin:         GAAP gross margin 38.4%  38.5%  37.6%  38.5%  29.0% Special items:          a)Restructuring-related inventory and other charges 0.8% (0.1)% (0.1)%  0.4%  9.7% b)Amortization of intangible assets 0.1%  0.1%  0.1%  0.1%  0.1% c)Amortization of fair market value step-up of inventory —%  —%  0.1%  —%  —%  Total special items 0.9%  —%  0.1%  0.5%  9.8%Non-GAAP gross margin 39.3%  38.5%  37.6%  39.0%  38.8%Reconciliation of GAAP to non-GAAP operating expenses:         GAAP operating expenses$357.7  $636.5  $358.5  $994.2  $1,226.0  Special items:          a)Amortization of intangible assets (10.5)  (10.5)  (11.0)  (21.0)  (22.4) b)Restructuring, asset impairments and other charges, net (41.2)  (329.3)  (49.2)  (370.5)  (588.5) c)Third-party acquisition and divestiture-related costs (7.6)  (1.4)  (0.6)  (9.0)  (2.9) d)Adjustments to contingent consideration (1.6)  (1.6)  —   (3.2)  —   Total special items (60.9)  (342.8)  (60.8)  (403.7)  (613.8)Non-GAAP operating expenses$296.8  $293.7  $297.7  $590.5  $612.2 Reconciliation of GAAP to non-GAAP operating income:         GAAP operating income (loss)$258.6  $(53.4) $193.4  $205.2  $(380.3) Special items:          a)Restructuring-related inventory and other charges 13.4   (1.0)  (1.9)  12.4   281.5  b)Amortization of intangible assets 11.7   11.7   12.3   23.4   25.0  c)Restructuring, asset impairments and other charges, net 41.2   329.3   49.2   370.5   588.5  d)Third-party acquisition and divestiture-related costs 7.6   1.4   0.6   9.0   2.9  e)Amortization of fair market value step-up of inventory —   —   1.2   —   1.2  f)Adjustments to contingent consideration 1.6   1.6   —   3.2   —   Total special items 75.5   343.0   61.4   418.5   899.1 Non-GAAP operating income$334.1  $289.6  $254.8  $623.7  $518.8 Reconciliation of GAAP to non-GAAP operating margin(operating income / revenue):         GAAP operating margin 16.1% (3.5)%  13.2%  6.6% (13.0)% Special items:          a)Restructuring related inventory and other charges 0.8% (0.1)% (0.1)%  0.4%  9.7% b)Amortization of intangible assets 0.7%  0.8%  0.8%  0.8%  0.9% c)Restructuring, asset impairments and other charges, net 2.6%  21.8%  3.3%  11.9%  20.2% d)Third-party acquisition and divestiture-related costs 0.5%  0.1%  —%  0.3%  0.1% e)Amortization of fair market value step-up of inventory —%  —%  0.1%  —%  —% f)Adjustments to contingent consideration 0.1%  0.1%  —%  0.1%  —%  Total special items 4.7%  22.7%  4.1%  13.5%  30.9%Non-GAAP operating margin 20.8%  19.1%  17.3%  20.0%  17.8%Reconciliation of GAAP to non-GAAP income before income taxes:         GAAP income (loss) before income taxes$270.9  $(44.6) $202.2  $226.3  $(358.8) Special items:          a)Restructuring-related inventory and other charges 13.4   (1.0)  (1.9)  12.4   281.5  b)Amortization of intangible assets 11.7   11.7   12.3   23.4   25.0  c)Restructuring, asset impairments and other charges, net 41.2   329.3   49.2   370.5   588.5  d)Third-party acquisition and divestiture-related costs 7.6   1.4   0.6   9.0   2.9  e)Amortization of fair market value step-up of inventory —   —   1.2   —   1.2  f)Adjustments to contingent consideration 1.6   1.6   —   3.2   —   Total special items 75.5   343.0   61.4   418.5   899.1 Non-GAAP income before income taxes$346.4  $298.4  $263.6  $644.8  $540.3 Reconciliation of GAAP to non-GAAP net income attributable to ON Semiconductor Corporation:         GAAP net income (loss) attributable to ON Semiconductor Corporation$226.8  $(33.4) $170.3  $193.4  $(315.8) Special items:          a)Restructuring-related inventory and other charges 13.4   (1.0)  (1.9)  12.4   281.5  b)Amortization of intangible assets 11.7   11.7   12.3   23.4   25.0  c)Restructuring, asset impairments and other charges, net 41.2   329.3   49.2   370.5   588.5  d)Third-party acquisition and divestiture-related costs 7.6   1.4   0.6   9.0   2.9  e)Amortization of fair market value step-up of inventory —   —   1.2   —   1.2  f)Adjustments to contingent consideration 1.6   1.6   —   3.2   —  g)Adjustment to Income taxes (8.5)  (56.5)  (10.4)  (65.0)  (130.4)  Total special items 67.0   286.5   51.0   353.5   768.7 Non-GAAP net income attributable to ON Semiconductor Corporation$293.8  $253.1  $221.3  $546.9  $452.9 Reconciliation of GAAP to non-GAAP diluted shares outstanding:         GAAP diluted shares outstanding 404.4   394.1   414.9   401.5   418.0  Special items:          a)Less: dilutive shares attributable to convertible notes (7.4)  —   —   (4.9)  —  b)Add: dilutive shares attributable to share-based awards —   1.9   —   —   0.4   Total special items (7.4)  1.9   —   (4.9)  0.4 Non-GAAP diluted shares outstanding 397.0   396.0   414.9   396.6   418.4 Non-GAAP diluted earnings per share:         Non-GAAP net income attributable to ON Semiconductor Corporation$293.8  $253.1  $221.3  $546.9  $452.9 Non-GAAP diluted shares outstanding 397.0   396.0   414.9   396.6   418.4 Non-GAAP diluted earnings per share$0.74  $0.64  $0.53  $1.38  $1.08 Reconciliation of net cash provided by operating activities to free cash flow:         Net cash provided by operating activities$459.7  $239.1  $184.3  $698.8  $786.6  Special items:          a)Payments for acquisition of property, plant and equipment (34.3)  (21.9)  (78.2)  (56.2)  (225.8)  Total special items (34.3)  (21.9)  (78.2)  (56.2)  (225.8)Free cash flow$425.4  $217.2  $106.1  $642.6  $560.8                      Certain of the amounts in the above tables may not total due to rounding of individual amounts.

FREE CASH FLOW

 Quarters Ended   October 3, 2025 December 31, 2025 April 3, 2026 July 3, 2026 Last Twelve MonthsNet cash provided by operating activities$418.7  $554.5  $239.1  $459.7  $1,672.0 Payments for acquisition of property, plant and equipment (46.3)  (69.1)  (21.9)  (34.3)  (171.6)Free cash flow$372.4  $485.4  $217.2  $425.4  $1,500.4           Revenue$1,550.9  $1,530.1  $1,513.3  $1,603.5  $6,197.8                      SHARE-BASED COMPENSATION

Total share-based compensation related to restricted stock units, stock grant awards and the employee stock purchase plan was as follows:

 Quarters Ended
 Six Months Ended
 July 3, 2026
 April 3, 2026
 July 4, 2025
 July 3, 2026
 July 4, 2025
Cost of revenue$6.8  $6.4  $6.1  $13.2  $12.1 Research and development 6.0   7.3   6.3   13.3   12.6 Selling and marketing 4.8   5.1   4.9   9.9   9.6 General and administrative 19.8   18.5   17.1   38.3   34.0 Total share-based compensation$37.4  $37.3  $34.4  $74.7  $68.3                      SUPPLEMENTAL FINANCIAL DATA

 Quarters Ended
 Six Months Ended
 July 3, 2026
 April 3, 2026
 July 4, 2025
 July 3, 2026
 July 4, 2025
Net cash provided by operating activities$459.7  $239.1  $184.3  $698.8  $786.6 Free cash flow$425.4  $217.2  $106.1  $642.6  $560.8 Cash paid for income taxes$50.8  $46.6  $65.0  $97.4  $86.5                Depreciation and amortization (1)$141.3  $286.7  $156.4  $428.0  $324.6 Less: Amortization of intangible assets 11.7   11.7   12.3   23.4   25.0 Depreciation and amortization (excl. amortization of intangible assets) (1)$129.6  $275.0  $144.1  $404.6  $299.6                (1) Accelerated depreciation and amortization related to the 2025 and 2026 Manufacturing Realignment Programs$—  $136.5  $2.0  $136.5  $14.5                      To supplement the consolidated financial results prepared in accordance with GAAP, onsemi uses certain non-GAAP measures, which are adjusted from the most directly comparable GAAP measures to exclude items related to the amortization of acquisition-related intangibles, restructuring-related cost of revenue charges, expensing of appraised inventory fair market value step-up, inventory valuation adjustments, in-process research and development expenses, restructuring, asset impairments and other, net, goodwill impairment charges, gains and losses on debt prepayment, non-cash interest expense, actuarial (gains) losses on pension plans and other pension benefits, third party acquisition and divestiture-related costs, tax impact of these items and certain other non-recurring items, as necessary. Management does not consider the effects of these items in evaluating the core operational activities of onsemi. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate onsemi’s current performance. In addition, the Company believes that most analysts covering onsemi use the non-GAAP measures to evaluate onsemi’s performance. Given management’s and other relevant parties’ use of these non-GAAP measures, onsemi believes these measures are important to investors in understanding onsemi’s current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in onsemi’s core business across different time periods. These non-GAAP measures are not prepared in accordance with, and should not be considered alternatives or necessarily superior to, GAAP financial data and may be different from non-GAAP measures used by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names.

Non-GAAP Gross Profit and Gross Margin

The use of non-GAAP gross profit and gross margin allows management to evaluate, among other things, the gross profit and gross margin of the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash and non-recurring items including, generally speaking, restructuring-related cost of revenue charges, amortization of intangible assets, amortization of appraised inventory fair market value step-up, impact of business wind down and non-recurring facility costs. In addition, it is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our operating performance independent of certain non-cash items and the effects of certain variables unrelated to our overall operating performance.

Non-GAAP Operating Income and Operating Margin

The use of non-GAAP operating income and operating margin allows management to evaluate, among other things, the operating income and operating margin of the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash and non-recurring items including, generally speaking, restructuring-related cost of revenue charges, expensing of appraised inventory fair market value step-up, impact of business wind down, non-recurring facility costs, amortization and impairments of intangible assets, third party acquisition and divestiture-related costs, restructuring charges, asset impairments and certain other special items as necessary. In addition, it is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our operating performance independent of certain non-cash items and the effects of certain variables unrelated to our overall operating performance.

Non-GAAP Net Income Attributable to ON Semiconductor Corporation and Non-GAAP Diluted Earnings Per Share

The use of non-GAAP net income attributable to ON Semiconductor Corporation and non-GAAP diluted earnings per share allows management to evaluate the operating results of onsemi’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash and non-recurring items including, generally, the restructuring related cost of revenue charges, amortization and impairments of intangible assets, expensing of appraised inventory fair market value step-up, impact of business wind down, non-recurring facility costs, restructuring, asset impairments, gains and losses on debt prepayment, actuarial (gains) losses on pension plans and other pension benefits, third party acquisition and divestiture-related costs, discrete tax items and other non-GAAP tax adjustments and certain other special items, as necessary. In addition, these measures are important components of management’s internal performance measurement and incentive and reward process, as they are used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, setting targets and forecasting future results. For our non-GAAP reporting we apply a projected, normalized non-GAAP effective tax rate of 15% for 2026 and 16% for 2025. We calculate this non-GAAP effective tax rate on an annual basis. We may update this non-GAAP effective tax rate at any time for a variety of reasons, including, but not limited to, the rapidly evolving global tax environment, significant changes in our geographic earnings mix or changes to our strategy or business operations. Management presents these non-GAAP financial measures to enable investors and analysts to understand the results of operations of onsemi’s core businesses and, to the extent comparable, to compare our results of operations on a more consistent basis against those of other companies in our industry.

Free Cash Flow

The use of free cash flow allows management to evaluate, among other things, the ability of the Company to make interest or principal payments on its debt. Free cash flow is defined as the difference between cash flow from operating activities and capital expenditures disclosed under investing activities in the consolidated statement of cash flows. Free cash flow is not an alternative to cash flow from operating activities as a measure of liquidity. It is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our financial performance independent of the cash capital expenditures.

Non-GAAP Diluted Share Count

The use of non-GAAP diluted share count allows management to evaluate, among other things, the potential dilution due to the outstanding restricted stock units excluding the dilution from the convertible notes that is covered by hedging activity up to a certain threshold. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Notes, $103.87 for the 0.50% Notes, and $161.30 for the 2031 0% Notes, the non-GAAP diluted share count includes the anti-dilutive impact of the Company’s hedge transactions issued concurrently with the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes, $103.87 and $156.78 for the 0.50% Notes, and $161.30 and $211.54 for the 2031 0% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes, the 0.50% Notes, and the 2031 0% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, $156.78 for the 0.50% Notes, and $211.54 for the 2031 0% Notes, the dilutive impact of the warrants issued concurrently with such notes is included in the diluted shares outstanding.

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ON Semiconductor’s (NASDAQ:ON | ON Price Prediction) rebound has been one of the semiconductor sector’s more dramatic stories of 2026, and our proprietary model still sees room to run. The stock trades at $95.96 after a 77.21% year-to-date rally that cooled from a $134.92 52-week high.

Our 24/7 Wall St. price target for ON Semiconductor is $123.74, implying 28.94% upside over the next 12 months. The model’s rating is buy, with high confidence at 90%.

24/7 Wall St. Price Target Summary Metric Value Current Price $95.96 24/7 Wall St. Price Target $123.74 Upside 28.94% Recommendation BUY Confidence Level 90% From Cyclical Trough to AI Data Center Breakout ON has whipsawed investors. Shares sat at $48.11 last September and ripped to $125.90 by mid-June before pulling back 12.9% over the past month.

Q1 2026 confirmed the inflection: revenue of $1.513 billion topped expectations by 1.72%, non-GAAP EPS of $0.64 exceeded expectations by 4.03%, and non-GAAP gross margin recovered to 38.5% from a depressed 20.3% a year earlier.

CEO Hassane El-Khoury said the business has “moved beyond the cyclical trough on a path to recovery”, with AI data center revenue more than doubling year over year.

Why Bulls See a Breakout Above $133 The bull thesis rests on the AI data center curve and the silicon carbide EV cycle. Q1 AI data center revenue more than doubled YoY and grew more than 30% sequentially, while Power Solutions climbed 14% to $736.6 million.

EliteSiC design wins with Geely, NIO, and Xiaomi position ON for the 900V EV architecture shift, and PineBridge estimates data center equipment demand growing around 25% annually for the next four to five years. Under our bull case, ON reaches $133.10 in 12 months, a 38.7% total return.

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What Could Go Wrong The bear case starts with valuation. ON’s trailing P/E of 71 and forward multiple of 31 leave no cushion. Free cash flow fell 52.23% YoY in Q1, yet ON spent $345.7 million on buybacks, roughly 160% of free cash flow.

Barclays initiated with equal-weight and a $75 target, flagging automotive and China exposure. Bulls counter that the $329.3 million restructuring charge is non-recurring and non-GAAP margins already run near 38.5%. Our bear case still points to $98.65, roughly flat with today’s price.

How ON Compares to NXPI and TXN NXP Semiconductors (NASDAQ:NXPI) is the cleanest automotive-analog comp. NXPI trades at a forward P/E of 20 with a 27.7% operating margin and 12.2% revenue growth. ON’s forward multiple of 31 looks rich against that, but ON’s AI data center exposure is scaling faster.

Texas Instruments (NASDAQ:TXN) sets the industrial-analog benchmark. TXN’s forward P/E of 41 and operating margin of 37.8% show what mature scale looks like. ON sits between the two on multiples, which makes our $123.74 target look reasonable rather than aggressive.

Company Forward P/E Operating Margin ON Semiconductor 31 18.2% NXP Semiconductors 20 27.7% Texas Instruments 41 37.8% Verdict: Model Rates ON a Buy The 24/7 Wall St. price target for ON Semiconductor is $123.74, a buy with 90% model confidence. The tipping factor is margin recovery paired with AI data center acceleration. The bullish setup holds if Q2 delivers within the $0.65 to $0.77 EPS guide. The thesis weakens if free cash flow keeps deteriorating while buybacks continue at 160% of FCF.

Year 24/7 Wall St. Price Target 2026 $123.74 2027 $129.27 2028 $155.71 2029 $184.89 2030 $199.89 These projections assume ON keeps executing on silicon carbide EV design wins and AI data center power. Meaningful upside or downside could come from automotive cycle turns or China policy shifts.

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Key Takeaways MU signed long-term Ford and GM deals as vehicles require more memory and storage content.ON and NXPI are positioned for demand tied to EV powertrains and software-defined vehicles.NVDA is expanding DRIVE partnerships for ADAS and Level 4 autonomous driving applications. Vehicles are becoming increasingly software-defined, requiring far more semiconductors than previous generations. Autonomous driving, electrification, connected features, digital cockpits and zonal vehicle architectures are driving demand for memory, AI processors, sensors, networking chips and power semiconductors. Micron Technology (MU - Free Report) identifies these as five key megatrends reshaping the automotive industry.

These trends are prompting automakers to secure access to critical chip technologies. Recently, Micron signed a long-term agreement with Ford to supply memory and storage solutions for the automaker's future vehicles. The announcement came just days after Micron secured a similar agreement with General Motors. According to Micron CEO Sanjay Mehrotra, vehicles with Level 4 autonomous driving capabilities could eventually require more than 300GB of RAM, pointing to a significant increase in memory content per vehicle.

AI-powered vehicles also require powerful processors to run complex software, image sensors and radar chips to enable advanced safety features and efficient power semiconductors to manage rising computing workloads. As the automotive industry evolves, several semiconductor companies like Micron, ON Semiconductor (ON - Free Report) , NXP Semiconductors N.V. (NXPI - Free Report) , and NVIDIA (NVDA - Free Report) are well-positioned to benefit fromthis shift to the next generation of intelligent vehicles.

MicronMicron is becoming a strategic technology partner for automakers. Under its agreements with Ford and General Motors, the company will provide automotive-grade LPDRAM, NOR flash and UFS NAND storage products while working with customers on future memory platforms and vehicle architectures. This deeper collaboration should strengthen Micron's position as vehicles become increasingly software-defined.

To support long-term demand, Micron is expanding advanced DRAM manufacturing at its Manassas, VA, facility and increasing output of automotive memory solutions designed for long product lifecycles. These investments should improve supply reliability while helping the company capture rising memory content per vehicle. As ADAS, connected features and AV capabilities become more widespread, Micron's growing automotive footprint positions it to benefit from a multi-year increase in demand for high-performance automotive memory and storage.

MU currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

onsemionsemi is benefiting from electrification and software-defined vehicles. The company is a leading supplier of silicon carbide (SiC) power semiconductors, which are increasingly used in EV powertrains to improve energy efficiency, charging speed and driving range. Partnerships with automakers such as Geely and NIO continue to strengthen its presence in the world's largest EV market.

Beyond power chips, onsemi is expanding its role in next-generation vehicle architectures. Its Treo platform is gaining traction in software-defined vehicles, and the company recently began production shipments of Ethernet solutions for a North American automaker's zonal architecture. These chips enable faster in-vehicle communication and centralized computing—key building blocks for connected and autonomous vehicles. As adoption of zonal architectures accelerates, ON appears well-positioned to capture both revenue growth and higher-margin opportunities.

onsemi carries a Zacks Rank #3 (Hold).

NXP SemiconductorsNXP Semiconductors is benefiting from the automotive industry's shift toward software-defined vehicles and centralized computing architectures. The company is seeing rising demand for its S32 processing platforms, automotive Ethernet solutions and imaging radar chips, which enable advanced driver-assistance systems, high-speed in-vehicle communication and real-time data processing.

These next-generation platforms are increasing NXP's semiconductor content per vehicle, allowing the company to capture a larger share of automotive electronics as vehicles become more intelligent. At the same time, deeper engagement in long-term vehicle programs is strengthening relationships with global automakers and improving future revenue visibility. NXP is also gaining traction in China, where rapid adoption of advanced vehicle architectures is creating additional demand for its automotive processors, networking and connectivity solutions. With software-defined vehicles becoming mainstream, NXP appears well-positioned to benefit.

NXP Semiconductors carries a Zacks Rank #3.

NVIDIANVIDIA is becoming a key technology partner for automakers developing AI-powered and AVs. General Motors has collaborated with NVIDIA to use the company's AI technology for next-generation vehicles and manufacturing, while the automaker will also build future vehicles on NVIDIA's DRIVE AGX platform to accelerate the deployment of autonomous driving capabilities. NVIDIA has also deepened ties with Stellantis, Hyundai Motor and Kia, supplying its DRIVE platform and DRIVE AV software for advanced driver-assistance and Level 4 autonomous driving applications.

These partnerships reinforce NVIDIA's growing role beyond AI data centers. Its DRIVE platform integrates AI computing, perception and autonomous driving software into a single architecture, enabling automakers to build software-defined vehicles with advanced safety and connectivity features. As autonomous driving and in-vehicle AI become more mainstream, NVIDIA is well-positioned to capture a larger share of automotive semiconductor spending.

NVIDIA carries a Zacks Rank #3.

Key Takeaways ON is seeing rising demand for advanced power solutions across AI data centers, EVs and energy storage.AI data center revenues rose more than 30% sequentially in Q1 2026 and are expected to double in 2026.onsemi sees AI rack power content rising to about $115,000 as 800-volt architectures gain adoption. ON Semiconductor (ON - Free Report) or onsemi is benefiting from accelerating demand for advanced power solutions across AI data centers, electric vehicles (EVs), energy storage and industrial applications. The company's differentiated portfolio of silicon carbide (SiC), gallium nitride (GaN), intelligent power modules and analog power management solutions is driving stronger design wins and content growth, positioning it to outpace broader semiconductor demand.

AI infrastructure has emerged as one of ON Semiconductor's strongest growth drivers. In the first quarter of 2026, AI data center revenues increased more than 30% sequentially, nearly double management's expectations, and the company expects AI data center revenues to double year over year in 2026.

ON is benefiting from broader adoption across the entire power tree, with products deployed from high-voltage power conversion and intelligent power stages to system-level power management. The company is engaged with all major hyperscalers, multiple XPU vendors and leading power supply manufacturers, while more than 30 active programs with Flex Power span power supplies, battery backup systems and next-generation 800-volt DC architectures.

The transition to higher-voltage power architectures is significantly expanding onsemi’s content opportunity. Management expects AI racks to migrate to 800-volt designs, wherein ON’s power content per rack could increase from roughly $15,000 today to approximately $115,000, driven by higher adoption of high-voltage silicon carbide and GaN solutions. The company also believes that its proprietary vertical GaN technology and industry-leading 800-volt power conversion capabilities provide a meaningful competitive advantage in delivering higher power density and improved efficiency for next-generation AI infrastructure.

ON Semiconductor continues to benefit from growing electrification trends. The company remains the preferred power supplier for next-generation 900-volt EV platforms in China, where silicon carbide content continues to expand. At the same time, rising AI-related electricity demand is boosting investments in energy storage systems and microgrids. ON expects its energy storage business to grow more than 40% year over year in 2026, supported by differentiated silicon carbide hybrid modules for utility-scale solar inverters, renewable energy and liquid-cooled storage platforms. These diversified power applications reinforce ON Semiconductor's long-term growth prospects.

ON Faces Tough CompetitionOn Semiconductor is facing significant competition from the likes of Texas Instruments (TXN - Free Report) and Navitas Semiconductor (NVTS - Free Report) in the power semiconductors space.

Texas Instruments is gaining traction in the power semiconductor market through broad-based demand across industrial, automotive and AI data center applications. In the first quarter of 2026, analog revenues grew 22% year over year, supported by continued recovery in the industrial markets and accelerating demand from data centers. Data center revenues surged about 90% year over year, while industrial revenues climbed more than 30%, reflecting rising demand for power management, power delivery and analog solutions used in AI infrastructure. The company is also benefiting from long-term secular trends in electrification and AI.

Navitas is gaining momentum by transforming its business toward high-power GaN and SiC solutions for AI infrastructure. The company has shifted away from low-end consumer markets to focus on AI data centers, grid and energy infrastructure, performance computing, and industrial electrification. In the first quarter of 2026, revenues from these high-power markets grew 25% year over year and drove the company's return to sequential revenue growth, with management expecting these businesses to remain the primary growth engine throughout 2026. Navitas is also strengthening its competitive position through differentiated GaN and high-voltage SiC technologies tailored for next-generation AI power architectures.

ON’s Share Price Performance, Valuation & EstimatesShares of onsemi have appreciated 68.4% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 14.7%.

ON Stock Outperforms Sector
Image Source: Zacks Investment Research

The ON Semiconductor stock is trading at a premium, with a forward 12-month price/earnings of 24.4X compared with the broader sector’s 22.73X. ON has a Value Score of D.

ON’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ON’s 2026 earnings is currently pegged at $3.09 per share, up 4.4% over the past 60 days, suggesting 31.5% growth from the 2025 reported figure.

On Semiconductor currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.