ON

ON Semiconductor Corporation

Next est. report 2026-11-02 · BMO

AI '26: Power Components AI Bottleneck '25: Active Components AI Power '26: Active Power Mgmt AI Power '26: Wide Bandgap & Discrete Power Chips '26: CPUs Chips '26: Integrated Device Manufacturers Humanoid '25: Sensing & Perception Humanoid '25: Vision, LiDar & Imaging Systems

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Overview

ON Semiconductor Corporation provides intelligent power and sensing solutions, making electronics more efficient. Its Power Solutions (51.7%), Analog and Mixed-

ON Semiconductor Corporation provides intelligent power and sensing solutions, making electronics more efficient. Its Power Solutions (51.7%), Analog and Mixed-Signal (34.0%), and Intelligent Sensing (14.3%) groups serve automotive, industrial, and rapidly growing AI data center markets. The planned acquisition of Synaptics will add connected compute capabilities, further expanding its portfolio.

Search Keywords Brand Product

EliteSiC
Treo platform
silicon carbide
GaN solutions
image sensors
power systems
MOSFETs
IGBTs
10BASE-T1S Ethernet
AI data center power
electric vehicles
energy infrastructure
industrial automation
power management
sensing solutions
semiconductor manufacturing
zonal architecture
800-volt DC distribution

Search Keywords Event Phrases

onsemi Q2 2026 earnings
Synaptics acquisition

What They Do (Plain English & Analogies): ON Semiconductor Corporation, or onsemi, essentially provides the 'brains' and 'muscles' for modern electronic devices, making them smarter and more energy-efficient. Think of them as the architects and builders of the tiny, powerful components that manage electricity and enable devices to 'see' and interact with the world. For electric vehicles, their power chips are like a car's highly efficient engine and transmission, making it lighter, go further, and charge faster. For AI data centers, which are like massive digital brains, onsemi's solutions are the sophisticated power grid that ensures these powerful computers get the exact, clean, and efficient energy they need to run without overheating or wasting electricity, from the moment power enters the building to the tiny circuits on the AI processor itself. They also create advanced sensors, acting as the 'eyes' that allow things like self-driving cars to perceive their surroundings or robots to navigate complex environments.
Very Brief History: Originally spun off from Motorola's Semiconductor Components Group in 1999, ON Semiconductor initially focused on a broad range of commodity components. Under CEO Hassane El-Khoury, appointed in 2020, the company underwent a significant strategic transformation called 'FabRight.' This shift moved the company away from low-margin commodity parts to focus on high-value 'Intelligent Power and Sensing' solutions, a strategy bolstered by key acquisitions such as Fairchild Semiconductor (2016), GT Advanced Technologies (2021) for Silicon Carbide (SiC) leadership, and VCORE (2025) for AI power management.
"Street Stereotype": The Street views onsemi as a 'transformed cyclical.' Once dismissed as a low-margin 'jellybean' chipmaker, it is now perceived as a top-tier play on the electrification of the auto industry and the power-hungry infrastructure of AI data centers. However, investors remain wary of its heavy exposure to the automotive cycle and the competitive pricing pressure in the Silicon Carbide and Gallium Nitride (GaN) markets as more capacity comes online.
Subsidiaries On Linked In*: {"subsidiaries":[]}
Customer Sectors & Example Clients: ON Semiconductor's customers are primarily in the Automotive, Industrial, and AI Data Center infrastructure sectors. Specific clients mentioned include NVIDIA (MGX ecosystem), Great Wall (a leading provider of power solutions for China's cloud and AI infrastructure market), AWS (for power supply and battery backup systems), Geely Zeekr and Xiaomi (China BEVs), Rivian (R2 platform), and a leading global robotics platform (for high-resolution image sensors). Other clients from prior knowledge include General Motors, Dexcom (medical/CGM), Sungrow Electric (energy storage), Delta Electronics, LITEON, Tesla, Hyundai, BYD, and NIO.
New Customers / Segments They'Re Targeting: ON Semiconductor is actively targeting an expanded role within the NVIDIA MGX ecosystem, supplying advanced power systems for next-generation AI data centers. They have secured new power supply platform wins with Great Wall for China's cloud and AI infrastructure market and are expanding content in U.S. hyperscalers' AI deployments, including design wins for AWS power supply and battery backup systems. In the industrial sector, they are growing with North American microgrid customers for energy storage systems (ESS). In automotive, they are gaining share with EV disruptors like Rivian, providing power content for platforms such as the R2. Additionally, they secured a meaningful design win with a leading global robotics platform for high-resolution image sensors and indirect time-of-flight technology. The announced acquisition of Synaptics is aimed at expanding into connected compute capabilities.
Supply Chain And Sourcing Geographies: ON Semiconductor employs a balanced supply chain model, combining internal manufacturing with foundry partnerships. The company has implemented a 'Fab Right' strategy to optimize its manufacturing footprint, which included the divestitures of its Mountain Top and Philippines manufacturing facilities. Over 60% of its manufacturing is still internal. Key manufacturing and development facilities are located in East Fishkill, New York, USA (where Treo products are ramping), Phoenix, Arizona, USA (headquarters), Roznov, Czech Republic, Gresham, Oregon, USA, South Portland, Maine, USA, Bucheon, South Korea, Aizu, Japan, Seremban, Malaysia, and Melaka, Malaysia. Assembly and test operations are also conducted in China. The company is seeing incremental increases in input costs, primarily in raw materials and external manufacturing.
Sales Geographies And Expansion Plans: ON Semiconductor currently sells its products across major global regions. In the automotive sector, they are seeing strong performance in China, followed by the U.S., with Europe experiencing a sequential decline in Q2 due to specific customer seasonality. Their AI data center business shows significant strength primarily in the U.S., with some growth also beginning in China through wins with providers like Great Wall. The industrial business is recovering globally, with specific strength in energy infrastructure (including microgrid customers) in North America and China. The 'AI halo effect' is also driving demand in industrial applications in Europe. The company's collaborations with Chinese OEMs like Geely and NIO highlight their role in enabling these customers to scale globally with next-generation EV platforms, implying a broader international reach for their automotive power solutions.
How Key Themes May Help/Hurt: The buildout of 'AI Power '26: Active Power Mgmt' is a significant tailwind for ON Semiconductor. The increasing power requirements and the industry's evolution towards 800-volt DC distribution in AI data centers directly drive greater adoption of ON's intelligent power solutions, including their high-voltage power portfolio and silicon carbide solutions. As the only broad-based U.S. power semiconductor supplier covering the full AI Power Tree, ON is uniquely positioned to benefit from this transition, from the grid all the way to the processor. The 'AI halo effect' further expands their opportunity into supporting power infrastructure, such as energy storage systems (ESS), where their EliteSiC hybrid ESS modules offer industry-leading efficiency. Their decades of power expertise, initially honed in automotive, are directly leveraged to address the similar challenges of efficiency, power density, and reliability in AI infrastructure and energy systems, leading to broader customer wins and expanding content across these high-growth markets.

3 Main Long-Term Bull Details

Accelerating AI Data Center Growth and Content Expansion: ON's AI data center revenue is expected to more than double in 2026, driven by broader customer wins (e.g., NVIDIA MGX ecosystem, Great Wall, AWS) and expanding content across the entire Power Tree. The industry's shift towards 800-volt DC distribution will further accelerate the adoption of their differentiated high-voltage power portfolio, including silicon carbide solutions, with content per rack potentially reaching $115,000.
Strong Automotive Content Gains and Market Share Expansion: ON continues to expand its content per vehicle through a growing portfolio of differentiated power, sensing, and connectivity solutions. This includes significant silicon carbide revenue growth in China EVs (expected 60-70% year-over-year) due to market share gains with customers like Geely Zeekr and Xiaomi, and wins with EV disruptors such as Rivian's R2 platform. The Treo analog-mixed-signal platform is also gaining traction in zonal architectures, ensuring ON outgrows underlying vehicle production.
Structural Gross Margin Expansion and Operational Efficiency: The 'Fab Right' strategy, including the completion of non-core revenue exits and divestitures of subscale legacy operations, is structurally improving the cost base and driving manufacturing efficiencies. Coupled with increasing utilization rates (83% in Q2, expected to be flat to up in Q3) and a favorable product mix towards high-margin intelligent power and sensing solutions, ON anticipates continued sequential gross margin expansion throughout 2026 and beyond, with a long-term target of over 50%.

3 Main Long-Term Bear Details

Dependence on Macro Recovery and Utilization: While demand signals are improving, gross margins remain heavily dependent on a sustained macro recovery to reach full utilization (low 90s). Any delay in demand replenishment, particularly from Tier 1 automotive suppliers or in broader industrial markets, could prolong underutilization charges and stall projected margin expansion.
Intense Competition and Execution Risks in Evolving Markets: ON Semiconductor faces intense competition in rapidly evolving markets like SiC and GaN from established players and regional foundries. While the company is introducing new products and expanding its TAM, execution risks in successfully ramping new technologies (e.g., vertical GaN revenue expected to start in 2027) and fully leveraging platforms like Treo could allow competitors to capture early-mover advantages.
Supply Chain Constraints and Input Cost Increases: Despite efforts to increase capacity, ON experienced supply tightening and lead time extensions in several growth areas, leading to prioritization of AI data center shipments over automotive and industrial in Q2. Ongoing increases in input costs (raw materials, external manufacturing) necessitate price increases, which, while offsetting costs, highlight potential supply chain vulnerabilities and persistent cost pressures.

Competitors And Differentiation: ON Semiconductor positions itself as the 'only broad-based U.S. power semiconductor supplier' with technologies spanning the full AI Power Tree, from the grid to the processor. Their differentiation stems from solving complex power challenges, particularly in automotive, where power efficiency, thermal management, reliability, and system integration are critical. They leverage decades of power expertise across multiple growth markets, including AI infrastructure and energy systems. The company emphasizes its superior power efficiency and power density in next-generation AI power architectures, including silicon carbide solutions. In automotive, they are gaining market share, especially in China EVs, and expanding content per vehicle with new products like their 10BASE-T1S Ethernet offering and inductive/ultrasonic sensing products, reflecting the contribution of their Treo analog-mixed-signal platform. They aim to win where their products provide clear differentiation to end customers rather than competing on commodity pricing.
Recent Performance & What The Market'S Focused On: ON Semiconductor reported strong second-quarter 2026 results, with revenue of $1.6 billion, non-GAAP gross margin of 39.3%, and non-GAAP diluted earnings per share of $0.74, all above the midpoint of guidance. The company's AI data center business is now expected to more than double in 2026. Automotive revenue was $781 million, down 2% sequentially due to European seasonality but up 7% year-over-year, while industrial revenue was $423 million, up 1% sequentially and 4% year-over-year. The 'other' category, anchored by AI data center demand, grew 34% sequentially. Manufacturing utilization increased to 83% from 77% in Q1, and the company completed the final $35 million of planned non-core revenue exits, with no further exits anticipated beyond 2026. For Q3 2026, ON guided revenue to be between $1.65 billion and $1.75 billion, with non-GAAP gross margin between 40% and 42%, and non-GAAP EPS between $0.81 and $0.93. The market is focused on the sustained acceleration of AI data center growth, continued sequential gross margin expansion driven by improving utilization and 'Fab Right' initiatives, and the strength of the automotive and industrial market recovery, particularly content gains and share growth, as the company moves past non-core revenue exits. The announced agreement to acquire Synaptics, expected to close in mid-2027, is also a key focus for future strategic direction.

Revenue Segments And Estimated Mix: Power Solutions Group (PSG) — Mix: ~51.8%; Source: Q2 2026 Earnings Transcript; Trend: Increased 13% quarter-over-quarter and 19% year-over-year
Analog and Mixed Signal Group (AMG) — Mix: ~34.1%; Source: Q2 2026 Earnings Transcript; Trend: Increased 1% quarter-over-quarter and decreased 2% year-over-year
Intelligent Sensing Group (ISG) — Mix: ~14.3%; Source: Q2 2026 Earnings Transcript; Trend: Decreased 3% quarter-over-quarter and increased 7% year-over-year
Product Brands: onsemi
Treo
EliteSiC

Bull / Bear Details

As of 2026-08-10, onsemi is firmly positioned as a high-margin leader, driven by accelerating demand in AI data centers (now expected to more than double in 202

Thesis

As of 2026-08-10, onsemi is firmly positioned as a high-margin leader, driven by accelerating demand in AI data centers (now expected to more than double in 2026) and robust automotive content gains, particularly in China SiC. Strategic 'Fab Right' initiatives, rising utilization (83%), and new product ramps (Treo, EliteSiC) are fueling significant gross margin expansion and strong free cash flow. The Synaptics acquisition further enhances its portfolio, making the bull case increasingly compelling.

Bull case

ON Semiconductor's AI data center business is accelerating, now expected to more than double in 2026, driven by expanded content across the entire Power Tree. Key wins include NVIDIA MGX ecosystem, Great Wall, and AWS power supply/battery backup systems, with SiC revenue in this segment projected to grow nearly 60% year-over-year in 2026.
Automotive content gains continue to drive growth, with China EV SiC revenue expected to increase 60-70% year-over-year, supported by customers like Geely Zeekr and Xiaomi, and new wins on Rivian's R2 platform. Additionally, the 'AI halo effect' is boosting industrial ESS revenue, projected to grow 40% year-over-year in 2026 with new EliteSiC modules.
The 'Fab Right' strategy and increasing utilization (now 83%) are driving robust gross margin expansion, with Q2 non-GAAP GM at 39.3% and Q3 guided to 40-42%. Divestitures will yield $35M annualized savings, and a second round of price increases will offset rising input costs. The Synaptics acquisition further enhances the portfolio with accretive gross margins.

Bear case

While non-core revenue exits are now complete for 2026, the company prioritized AI data center shipments over automotive and industrial in Q2 due to accelerated demand. This temporary allocation could impact short-term revenue growth in other segments as manufacturing catches up, potentially masking underlying demand in these areas.
Gross margins, while expanding, remain sensitive to sustained macro recovery to achieve 90%+ utilization for long-term targets. Furthermore, the company faces incremental increases in input costs (raw materials, external manufacturing), which are not expected to decline in 2027, necessitating ongoing price increases to offset these pressures and maintain margin expansion.
ON Semiconductor faces intense competition in rapidly evolving SiC and GaN markets, with execution risks in ramping new products and fully leveraging platforms like Treo. Additionally, the announced acquisition of Synaptics introduces integration risks, as successful synergy realization and market adoption of the combined portfolio are crucial for the expected long-term strategic and financial benefits.

Bull / Bear Case

Bear Case: Despite strong long-term growth drivers, ON Semiconductor faces near-term challenges. The company's prioritization of AI data center shipments in Q2 led to temporary allocation away from automotive and industrial segments, potentially hindering their short-term revenue growth as manufacturing catches up. Gross margin expansion, while evident, remains sensitive to achieving sustained macro recovery and reaching full utilization rates (90%+) for long-term targets. Furthermore, the company is experiencing incremental increases in input costs (raw materials, external manufacturing) which are not expected to decline in 2027, necessitating ongoing price increases to maintain margin levels. Intense competition in the evolving SiC and GaN markets, coupled with execution risks in ramping new products and integrating the Synaptics acquisition, could impede the realization of expected strategic and financial benefits.
Bull Case: ON Semiconductor's AI data center business is rapidly accelerating, projected to more than double in 2026, driven by significant design wins with NVIDIA MGX, Great Wall, and AWS, and an expected 60% year-over-year growth in SiC revenue within this segment. The company continues to gain substantial content in the automotive market, with China EV SiC revenue anticipated to increase by 60-70% year-over-year, supported by key customers and new platform wins like Rivian's R2. Operational efficiencies from the 'Fab Right' strategy, increasing manufacturing utilization (currently 83%), and strategic divestitures are fueling robust gross margin expansion, with Q3 non-GAAP gross margin guided to 40-42%. The planned acquisition of Synaptics further enhances its portfolio with accretive gross margins, and expanding TAMs in both AI data center and EV markets provide a strong long-term growth runway.
More Compelling & Why: Bear. While ON Semiconductor presents a compelling long-term growth narrative, the market's recent reaction, evidenced by a ~17% decline in stock price over the last month, suggests current valuation is heavily discounting near-term risks. The trailing P/E ratio of approximately 55.8x implies significant future growth is already priced in, making the stock vulnerable to any operational hiccups. The prioritization of AI data center shipments, while strategic, highlights existing supply constraints that could limit broader revenue growth, and persistent input cost increases pose a continuous challenge to margin expansion. My view would flip to Bull if the company demonstrates consistent, broad-based revenue acceleration across all segments (automotive, industrial, and AI data center) without significant prioritization issues, coupled with clear evidence that gross margin expansion is driven by operational leverage rather than solely offsetting rising costs.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Energy Storage Systems (ESS) Revenue Growth	ESS represents a significant growth opportunity driven by the "AI halo effect" and increasing demand for energy infrastructure, diversifying ON's industrial revenue.	Full-year 2026 ESS revenue growth rate relative to the 40% year-over-year expectation. Updates on North America microgrid customer engagements and adoption of EliteSiC hybrid ESS modules.	Bullish: Management raises the full-year 2026 ESS revenue growth expectation above 40% year-over-year. Announcements of new significant ESS design wins or partnerships.	Company earnings calls, investor presentations, company press releases, industrial and energy infrastructure market reports.	Department of Energy (DOE) reports on grid modernization and energy storage deployments. News from microgrid developers and energy storage integrators.	Wood Mackenzie: Global Energy Storage Outlook. BloombergNEF: Energy Storage Market Forecasts.
Automotive Silicon Carbide Revenue Growth in China	This specific segment highlights ON's market share gains and content expansion in the rapidly growing China EV market, a key driver for its automotive business.	Year-over-year growth rate of automotive silicon carbide revenue in China relative to the 60%-70% expectation for 2026. Updates on content per vehicle with customers like Geely Zeekr and Xiaomi.	Bullish: Automotive silicon carbide revenue in China exceeds 70% year-over-year growth in 2026. New design wins or expanded content with Chinese EV OEMs are announced.	Company earnings calls, investor presentations, company press releases, automotive industry reports focusing on EV component sourcing in China.	China Association of Automobile Manufacturers (CAAM) data on NEV sales. News from Chinese EV manufacturers (Geely, Xiaomi) regarding component suppliers.	S&P Global Mobility: EV Component Sourcing Database. Counterpoint Research: Automotive Semiconductor Market Share.
Non-GAAP Gross Margin Expansion driven by Manufacturing Utilization	Gross margin expansion is crucial for ON's profitability and reflects the success of its 'Fab Right' strategy and operating leverage as demand recovers.	Q3 2026 non-GAAP gross margin relative to the 40%-42% guidance. Manufacturing utilization rate in Q3 2026 (expected flat to up) and subsequent quarters. Sequential gross margin expansion throughout H2 2026.	Bullish: Q3 2026 non-GAAP gross margin exceeds 42%. Manufacturing utilization rate increases significantly above 83% in Q3 2026. Management reiterates or strengthens confidence in larger step functions in H2 2026.	Company earnings calls, investor presentations, SEC filings (10-Q, 10-K). The next earnings call (Q3 2026) will provide updates.	Industry reports on semiconductor fab utilization (e.g., SEMI reports).	Citi Research: Semiconductor Manufacturing Utilization Tracker. Susquehanna: Semiconductor Supply Chain Checks.
AI Data Center Revenue Growth and Content Expansion	This segment is ON's fastest-growing market, validating its "Power Tree" strategy and unique position in AI power, driving overall revenue and profitability.	Full-year 2026 AI data center revenue growth rate relative to the "more than double" expectation. Specific updates on design wins with NVIDIA MGX, Great Wall, and AWS power supply/battery backup systems. Silicon carbide revenue growth in AI data center applications.	Bullish: Management raises the full-year 2026 AI data center revenue growth expectation beyond "more than double". Continued announcements of new design wins or expanded content with hyperscalers and XPU vendors. Silicon carbide revenue in AI data center applications growing above 60% year-over-year.	Company earnings calls, investor presentations, SEC filings (10-Q, 10-K), company press releases. The next earnings call (Q3 2026) will provide updates.	Industry reports on AI data center infrastructure build-out (e.g., IDC, Gartner, Omdia). News articles on hyperscaler capex and AI deployments.	Dell'Oro Group: Data Center IT Equipment Market Share. Susquehanna: Semiconductor Supply Chain Checks.
Realization of Benefits from Second Round of Price Increases	This factor directly addresses the rising input costs and ON's ability to maintain or expand gross margins by passing on these costs, demonstrating pricing power.	Commentary on the impact of the "second round of price increases" on gross margin in Q3 and Q4 2026. Specific mentions of raw material and external manufacturing cost trends.	Bullish: Management confirms that price increases are fully offsetting or exceeding input cost increases, leading to sustained gross margin expansion. Input costs stabilize or show signs of moderation.	Company earnings calls, investor presentations. Management commentary on gross margin drivers and cost trends.	Producer Price Index (PPI) for semiconductor manufacturing inputs. Commodity price indices for materials like gold, silicon.	Gartner: Semiconductor Manufacturing Cost Analysis. Supply chain intelligence platforms (e.g., Everstream Analytics) for raw material pricing.

Key Reported Metrics, Reratings Triggers & Results3 rows

Total revenue growth signals the company's overall performance and market recovery. Investors are watching if core gains in AI and automotive can sufficiently o

Last reported · 2026-08-03

Key reported metrics			Rerating thresholds			Earnings results
Metric	Last period	Why it matters	What's needed for rerating	Rerating context	Earnings date	Actual reported	Hit target?	Notes
Total Revenue	5%	Total revenue growth signals the company's overall performance and market recovery. Investors are watching if core gains in AI and automotive can sufficiently offset the planned $300 million annual headwind from non-core business exits.	Total Revenue of over $1.65 billion for Q2 2026, representing year-over-year growth of 12% or more, coupled with an upward revision to full-year 2026 revenue guidance.	Exceeding revenue expectations and demonstrating accelerated growth (12%+ YoY) would validate ON's successful pivot to high-margin AI and automotive segments. This confirms the bull case that core gains are robustly offsetting non-core exits, signaling market share expansion and justifying a higher valuation.	2026-08-03	$1.6 billion (9% y/y growth)	No	ON Semiconductor reported total revenue of $1.6 billion, which was below the rerating trigger of over $1.65 billion. The year-over-year growth was 9%, falling short of the 12% or more target. While Q3 revenue guidance was provided ($1.65 billion to $1.75 billion), there was no explicit upward revision to the full-year 2026 revenue guidance.
Non-GAAP Gross Margin	-3.75%	Gross margin expansion is crucial for ON Semiconductor, reflecting the success of its 'Fab Right' strategy and manufacturing utilization recovery. It indicates improved profitability and operating leverage as the company shifts to higher-value products.	ON Semiconductor's Non-GAAP Gross Margin needs to exceed the high end of its Q2 2026 guidance of 38-40%. Furthermore, management must provide a clear and confident outlook for accelerated sequential gross margin expansion in the second half of 2026, demonstrating tangible progress towards the anticipated 'larger step functions' and a credible path to its long-term target of over 50% gross margins. This would likely be supported by an updated manufacturing utilization rate significantly above the Q1 2026 level of 77%.	Hitting this threshold validates ON's 'Fab Right' strategy and successful transition to higher-value products in AI data centers and advanced automotive. It signals enhanced profitability and operating leverage, confirming the company's transformation into a high-margin leader and boosting investor confidence in its long-term earnings power and competitive position.	2026-08-03	39.3% (+80 bps sequentially)	Partially	The reported non-GAAP gross margin of 39.3% was within the Q2 2026 guidance range of 38-40% but did not exceed the high end of 40%. However, management provided a confident outlook for sequential gross margin expansion throughout the year, guiding Q3 non-GAAP gross margin to 40-42%. Manufacturing utilization increased to 83% from 77% in Q1 2026, which is significantly above the prior quarter's level.
AI Data Center Revenue	100%	This metric is a primary secular growth engine for ON Semiconductor. Its rapid scaling validates the company's 'Power Tree' strategy and its unique position as a broad-based U.S. supplier, indicating future top-line growth potential.	AI Data Center Revenue needs to show sequential growth exceeding 30% in Q2 2026, or management needs to raise its full-year 2026 target of doubling 2025's $250 million revenue.	This metric is a primary secular growth engine for ON Semiconductor. Sustained acceleration above expectations validates the company's 'Power Tree' strategy and unique position in AI power, signaling robust top-line growth, improved profitability, and a stronger competitive stance, which would drive a positive rerating.	2026-08-03	Full-year 2026 target raised to 'more than double' 2025 revenue (from 'doubling'). 'Other' category revenue (primarily AI data center) up 34% sequentially to $400 million.	Yes	Management raised the full-year 2026 AI data center revenue target from 'doubling' to 'more than double' 2025 revenue. Additionally, the 'other' category, which includes AI data center and was its primary driver, grew 34% sequentially, exceeding the 30% sequential growth trigger. This indicates strong momentum in their fastest-growing market.

Key Questions

Can ON Semiconductor continue to exceed its 'more than double' revenue growth target for AI data centers in 2026, particularly with new design wins in the NVIDI

Can ON Semiconductor continue to exceed its 'more than double' revenue growth target for AI data centers in 2026, particularly with new design wins in the NVIDIA MGX ecosystem, Great Wall, and AWS, and how will this translate into overall revenue and profitability?

Question 2: Will ON Semiconductor achieve its Q3 non-GAAP gross margin guidance of 40-42% and demonstrate continued sequential expansion in the second half of 2026, driven by increasing manufacturing utilization (now 83%), the impact of a second round of price increases, and the benefits from Fab Right divestitures?
Question 3: With the non-core revenue exits now complete, will the combined growth from automotive (especially China SiC and new design wins like Rivian's R2) and industrial (driven by the AI halo effect and ESS) be sufficient to overcome the temporary prioritization of AI data center shipments and drive overall revenue growth for these segments in Q3 and beyond?

Earnings Transcript Summary3 rows

2026-08-03 · 2026Q2 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Accelerating AI Data Center Growth: Management highlighted that AI data center remains the fastest-growing market, with revenue expected to more than double in 2026, driven by broader customer wins and expanding content across the entire Power Tree, including NVIDIA MGX ecosystem, Great Wall, and AWS. 2. Gross Margin Expansion and Operating Leverage: Management emphasized the fourth consecutive quarter of non-GAAP gross margin expansion to 39.3%, reflecting the operating leverage in their model. They anticipate sequential gross margin expansion throughout the year due to recovering demand, manufacturing performance, and favorable mix. 3. Strategic Portfolio Reshaping and Fab Right Strategy: The company's Q2 results reflect progress in reshaping the business and technology portfolio. Management cited the announced divestitures of manufacturing facilities as advancing their 'Fab Right' strategy to improve cost structure and the acquisition of Synaptics as a compelling strategic and financial move.	Call Takeaway & ToneThe overall takeaway of the call is that ON Semiconductor is experiencing a robust recovery, with strong momentum driven by accelerating demand in AI data centers, automotive, and industrial markets. The company is successfully executing its strategy of focusing on high-growth, high-margin segments and leveraging its 'Fab Right' initiatives to drive significant gross margin expansion and operating leverage. The tone of the call was confident and optimistic, with management consistently highlighting positive demand signals, strong execution, and a clear outlook for continued financial improvement throughout 2026 and beyond.	Prior Quarter'S Y/Y Growth By SegmentTotal Revenue: +5% y/y (Q1 2026); Automotive revenue: +5% y/y (Q1 2026); Power Solutions Group (PSG) revenue: +14% y/y (Q1 2026); Analog and Mixed-Signal Group (AMG) revenue: -5% y/y (Q1 2026); Intelligent Sensing Group (ISG) revenue: +1% y/y (Q1 2026); AI data center revenue: +100% y/y (Q1 2026).	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Automotive Environment (Demand, Seasonality, Pricing): Analysts inquired about the automotive business's sequential performance, Q3 outlook, typical Q4 seasonality, and the applicability of pricing levers. Management responded that Q2 was seasonally down due to specific European customers, but overall demand is stable with content gains. They clarified that pricing actions are offsetting material cost increases across all markets, including automotive. 2. Gross Margin Trajectory and Utilization: Analysts pressed on the drivers of gross margin expansion, particularly the impact of utilization rates. Management explained the approximately two-quarter lag for utilization benefits to hit the P&L, noting that Q4 2025 utilization was a headwind for Q2 2026, but Q2 2026 utilization increases will positively impact future quarters. They reiterated the 25-30 basis points of gross margin improvement for every point of utilization. 3. Prioritization of AI Data Center Demand and Supply Constraints: Analysts asked about the prioritization of AI data center demand over automotive and industrial, and the company's flexibility to ramp capacity. Management confirmed that they prioritized AI data center shipments due to strong, short-term demand, leading to some temporary allocation in other segments. They stated they are catching up on manufacturing output and have sufficient internal and external capacity, especially in growth areas like Treo.	Revenue SegmentsTotal Revenue: +9% y/y; Automotive revenue: +7% y/y; Industrial revenue: +4% y/y; Power Solutions Group (PSG) revenue: +19% y/y; Analog and Mixed Signal Group (AMG) revenue: -2% y/y; Intelligent Sensing Group (ISG) revenue: +7% y/y; AI data center revenue: expected to more than double in 2026 (full year expectation); Silicon carbide revenue in AI data center applications: expected to grow nearly 60% y/y in 2026; Energy Storage Systems (ESS) revenue: expected to grow approximately 40% y/y in 2026; Automotive silicon carbide revenue in China: expected to increase between 60% and 70% y/y.

2026-05-04 · 2026Q1 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. Accelerating AI Data Center Growth: Management highlighted that AI data center revenue grew over 30% quarter-over-quarter and doubled year-over-year, with expectations for it to double again in 2026. This segment is seen as a key driver for future top-line growth. 2. Treo Platform and New Product Ramps: There is a strong focus on the Treo platform, which saw revenue increase more than 2.5 times sequentially, securing design wins in high-volume automotive (zonal architectures) and industrial AI applications. This also includes the ramping of GaN solutions with a design funnel exceeding $1.5 billion. 3. Gross Margin Expansion and Operating Leverage: Management emphasized the third consecutive quarter of gross margin expansion to 38.5% and anticipates sequential gross margin expansion throughout 2026, driven by structural changes, FabRight actions, and improving manufacturing utilization.	Call Takeaway & ToneThe overall takeaway of the call is that ON Semiconductor has reached a clear inflection point, with the cyclical downturn having found its low point. The company is on a path to recovery, driven by strong execution in AI data centers, new product ramps like Treo in automotive and industrial, and sustained gross margin expansion due to structural changes and FabRight initiatives. The tone of the call was confident and optimistic, with management consistently highlighting positive demand signals, robust growth in strategic areas, and a clear outlook for continued financial improvement throughout 2026.	Prior Quarter'S Y/Y Growth By SegmentPower Solutions Group (PSG): -11% y/y; Analog and Mixed Signal Group (AMG): -9% y/y; Intelligent Sensing Group (ISG): -17% y/y.	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Gross Margin Trajectory and Levers: Analysts questioned the path to gross margin expansion and the timing of larger step functions. Management responded that expansion is expected throughout the year due to FabRight activities and improving utilization (each point of utilization adds 25-30 basis points to gross margin), with larger step functions anticipated in the second half of the year. 2. AI Data Center Growth and Content: Analysts inquired about the current size of the AI data center business and the company's ability to be a major player. Management stated that AI revenue, which was $250 million last year, is expected to double in 2026, and the company possesses the full breadth of power technologies (from wall to core) and has made strategic acquisitions to be a significant player. 3. Automotive Market Recovery and Inventory Dynamics: Analysts asked about the nature of the automotive recovery (true demand vs. content growth) and regional differences, as well as customer inventory behavior. Management clarified that the recovery is primarily a content story, with ON Semiconductor gaining share and adding new content like zonal Ethernet, especially in China and North America, and that customers are not yet building significant inventory, though lead times are extending and some technologies are on allocation.	Revenue SegmentsTotal Revenue: +5% y/y; Automotive revenue: +5% y/y; Power Solutions Group (PSG) revenue: +14% y/y; Analog and Mixed-Signal Group (AMG) revenue: -5% y/y; Intelligent Sensing Group (ISG) revenue: +1% y/y; AI data center revenue: +100% y/y.

2026-02-09 · 2025Q4 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
3 Things Management Is Most Focused On1. AI Data Center Scaling: Management is aggressively expanding their 'Power Tree' portfolio, having delivered $250M+ in 2025 revenue and targeting high-voltage bus architectures with SiC, GaN, and Vcore assets. 2. Fab Right Strategy: Focused on rationalizing the manufacturing footprint to reduce fixed costs, which is expected to lower 2026 depreciation by $45M-$50M and drive gross margin expansion. 3. High-Margin Product Mix: Proliferating the Treo platform (doubling samples) and launching 30+ new GaN devices to shift the portfolio toward differentiated, high-margin proprietary products.	Call Takeaway & ToneTakeaway: onsemi has reached a cyclical inflection point, with management signaling that the three-year downturn has bottomed. The company is successfully pivoting toward AI infrastructure and high-value automotive sensing while structurally improving its cost base through fab consolidations. Tone: Confident and Inflectionary; management expressed clear optimism regarding a return to year-over-year total company growth in Q1 2026.	Prior Quarter'S Y/Y Growth By SegmentPSG: -23% y/y; AMG: -16% y/y; ISG: -28% y/y. (Year-over-year growth accelerated/declines narrowed across all three segments in Q4 compared to Q3 2025).	3 Things Analysts Most Pressed On (And Mgmt Responses)1. Gross Margin Trajectory: Analysts questioned the path back to 50%+ margins. Management responded that 700bps of current headwind is due to underutilization (68%) which will dissipate as utilization returns to the 90% range, supplemented by 200bps from Fab Right actions. 2. AI Revenue Growth: Analysts pushed for 2026 AI targets. Management noted AI data center revenue is expected to grow high-teens sequentially in Q1 2026 and highlighted that content per rack could reach $105k by 2030. 3. Automotive Market Health: Analysts asked about inventory and EV slowdowns. Management stated inventory digestion is largely over and content gains in zonal architecture and 800V systems are offsetting slower unit growth in the broader EV market.	Revenue SegmentsPower Solutions Group (PSG): -11% y/y; Analog and Mixed Signal Group (AMG): -9% y/y; Intelligent Sensing Group (ISG): -17% y/y. Note: Industrial end-market revenue returned to growth at +6% y/y.

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2026-08-03

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible MarketON Semiconductor expects AI data center revenue to more than double in 2026, driven by stronger demand, broader customer wins, and expanding content across the entire Power Tree. The company has expanded its role in the NVIDIA MGX ecosystem and secured two power supply platform wins with Great Wall for China's cloud and AI infrastructure market. Additionally, design wins supporting AWS power supply and battery backup systems are creating content opportunities for their high-voltage power portfolio, including silicon carbide solutions. Silicon carbide revenue in AI data center applications is projected to grow nearly 60% year-over-year in 2026, with high-voltage revenue accelerating as system architectures evolve towards 800-volt DC distribution. In the industrial business, ESS revenue is expected to grow approximately 40% year-over-year in 2026, driven by North America microgrid customers, and the company released a next-generation EliteSiC hybrid ESS module delivering 99.3% efficiency. Automotive revenue in China increased 13% in the first half of 2026 against a 4% decline in total vehicle sales, supported by expanding content per vehicle with customers like Geely Zeekr and Xiaomi. Silicon carbide revenue in the China EV market is expected to increase between 60% and 70% year-over-year. The company is gaining share across U.S. EV disruptors, with power content on Rivian's R2 platform. A growing share of recent design wins are from products introduced over the last two years, including 10BASE-T1S Ethernet and inductive/ultrasonic sensing products, reflecting the increasing contribution of the Treo analog-mixed-signal platform. The company remains on track to double the number of products sampling this year. The announced agreement to acquire Synaptics is expected to leverage ON Semiconductor's manufacturing scale, global sales channel, and mass market engine to drive growth across a highly complementary portfolio. The AI data center Total Addressable Market (TAM) is now projected to increase from $12 billion to almost $50 billion by 2030, correlated to gigawatt scale installations and increased content per rack. The EV TAM has also increased from $26 billion to $63 billion, driven by higher EV penetration, accelerated silicon carbide adoption within EVs, and content gains in hybrid vehicles and Treo opportunities.	About CompetitionON Semiconductor positions itself as the 'only broad-based U.S. power semiconductor supplier with technologies spanning the full AI Power Tree,' uniquely positioned to support the transition from the grid to the processor. The company is gaining market share in China EVs, with silicon carbide revenue in that market expected to increase between 60% and 70% year-over-year. Hassane El-Khoury stated, 'We will win share where others cannot,' emphasizing that the company wins based on superior product differentiation rather than competing in multi-source, lower-margin product categories.	About The Broader IndustryThe recovery in the semiconductor industry continued to take shape during the quarter, with strengthening demand in AI data centers, China BEVs and automotive, energy infrastructure, medical, and industrial sectors. Supply is tightening in several growth areas, lead times are extending, and there are increases in orders placed within lead time and customer escalations, all indicating a healthy recovery. The 'AI halo effect' is driving demand across the power infrastructure required to support AI, including energy storage systems. Growth in AI workloads and increasing grid reliability and resilience requirements are expanding the industrial portfolio into higher-value infrastructure markets. Next-generation vehicle architecture demands for efficiency, power density, and reliability are increasingly mirroring challenges in AI infrastructure and energy systems. Broadly, the industry is moving toward architectures requiring higher levels of power efficiency, power density, and system intelligence across automotive, industrial, and AI data center applications. The company is observing incremental increases in input costs, primarily in raw materials and external manufacturing, and expects these costs to not go down in 2027, implying a sustained pricing environment.	Where Things Are HeadedON Semiconductor expects AI data center revenue to more than double in 2026, and ESS revenue to grow approximately 40% this year. Automotive silicon carbide revenue in China is projected to grow between 60% and 70%. The acquisition of Synaptics is expected to close in mid-2027. For Q3, revenue is guided to be in the range of $1.65 billion to $1.75 billion, with non-GAAP gross margin expected between 40% and 42%, including an $8 million share-based compensation. The company anticipates sequential gross margin expansion throughout the year, with utilization expected to be flat to up in Q3. A second round of price increases is being implemented to offset rising input costs, with benefits expected over the next several quarters. The divestitures of the Mountain Top and Philippines manufacturing facilities are expected to generate approximately $35 million of annualized savings, with initial benefits in 2027 and full savings in 2028. Non-GAAP operating expenses are expected to increase at a slower pace than revenue, supporting continued operating leverage. Non-GAAP earnings per share for Q3 are projected to be in the range of $0.81 to $0.93. Capital expenditures for the year are now expected to be below 5% of revenue. Lead times have stretched from approximately 27 weeks to around 32 weeks on average, and the book-to-bill ratio has been significantly above 1 for several quarters, with some customers placing orders into 2028. In Q3, automotive revenue is expected to be up low single digits, industrial relatively flat, and the 'other' category (including AI data center) up high teens. The content per rack for 800-volt DC architectures is seen as a step function, leading to aggressive longer-term growth, with ramping expected to begin in late 2027 or early 2028.	Updates On ThemeActive	Broader Themes EmergingThe 'AI halo effect' is driving demand across the power infrastructure required to support AI, including energy storage systems. There is a notable convergence of demands, where next-generation vehicle architecture challenges (efficiency, power density, reliability) increasingly mirror those in AI infrastructure and energy systems, allowing ON Semiconductor to leverage its power expertise across multiple growth markets. An industry-wide shift is occurring towards architectures requiring higher levels of power efficiency, power density, and system intelligence across automotive, industrial, and AI data center applications. The increasing importance of power management and conversion from 'wall to core' in AI data centers is a significant trend.	Bullish-Leaning Quotes (Short)Our second quarter results reflect the progress we have made in reshaping the business and our technology portfolio over the past several years and the strengthening demand environment. AI data center remains our fastest-growing market. We now expect AI data center revenue to more than double in 2026. As the only broad-based U.S. power semiconductor supplier with technologies spanning the full AI Power Tree, we are uniquely positioned to support this transition. Our ability to simultaneously invest for growth, expand profitability and return capital reflects the structural improvements in our business and differentiates onsemi today. We are entering the second half of the year from a position of strength with a stronger demand environment, a more focused portfolio and additional manufacturing efficiencies still ahead of us.	Bearish-Leaning Quotes (Short)Given the accelerated ramp in AI data center demand, we prioritized shipments to AI data center over automotive and industrial. We are seeing incremental increases in input costs, primarily in raw materials and external manufacturing. Not all capacity is fungible, right? So we do have some supply constraints on certain lanes. The only consistent message I can say here is it's not going down [input costs]. I'm not expecting a softer pricing environment in '27 either.

2026-05-04

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible MarketON Semiconductor Corporation is expanding its eligible market through the Treo platform, which is accelerating into ramping revenue and design wins across high-volume automotive, industrial, and AI applications. Treo design wins are supporting the transition to software-defined vehicles, including zonal architectures built on 10BASE-T1S paired with smart FETs, auto ADAS park-assist systems using ultrasonic sensing, power management for AI client platforms, and inductive position sensing for humanoids and advanced automation use cases. The company's GaN solutions design funnel now exceeds $1.5 billion, spanning 40 to 1,200 volts, with 10 products already sampling and another 20 sampling in 2026, with revenue expected to start in 2027. In automotive, ON Semiconductor began production shipments of its Treo-based T1S Ethernet solutions for a leading North American customer's next-generation zonal architecture, integrating over 30 Treo devices. The company was also awarded a new IGBT-based traction inverter program with a North American OEM transitioning to direct semiconductor sourcing. ON Semiconductor is the preferred power solution for 900-volt EV architectures led by Chinese OEMs and is already in production with customers in their next-generation EV platforms. Expanded collaborations with Geely and NIO highlight ON's role in enabling these customers to scale globally with their next-generation 900-volt platforms. In AI data centers, revenue grew more than 30% quarter over quarter, nearly double the expected growth rate, driven by broader adoption across the PowerTree with multiple XPU vendors and all leading hyperscalers. ON Semiconductor now expects its AI data center revenue to double year over year in 2026. The company is building a leading position in AI data centers across the full set of power capabilities, including high-voltage conversion, intelligent power stages, protection and control, and system-level integration. The AI halo effect is driving incremental demand in adjacent infrastructure markets, particularly energy storage systems, where ON expects to outpace power semiconductor growth in 2026 with over 40% revenue growth year over year and a market share approaching 60%. The company is ramping revenue for large U.S. OEMs' microgrid deployment. In sensing, ON Semiconductor secured a meaningful design win with a leading global robotics platform for high-resolution image sensors and indirect time-of-flight technology.	About CompetitionON Semiconductor Corporation positions itself as the only broad-based U.S. power semiconductor supplier, building a leading position in AI data centers across the full range of power capabilities required to modernize the power tree. The company's balanced model, combining internal GaN development and foundry partnerships, provides a differentiated roadmap and resilient supply chain. ON Semiconductor's silicon carbide share of new EV models deployed at the 2026 Beijing Auto Show in April is approximately 55%. The company is the preferred power solution for 900-volt EV architectures led by Chinese OEMs. ON Semiconductor's power portfolio helps hyperscalers overcome power density and efficiency constraints. The company is both gaining share and gaining more content in the automotive market. The Treo platform offers a competitive advantage by breaking traditional trade-offs, providing 65nm node with up to 90V support and high-temperature operation, unmatched by competitors.	About The Broader IndustryThe semiconductor industry is showing clear signs of a cyclical inflection point, with improving demand signals and a path to recovery. The automotive industry is transitioning to software-defined vehicles and 900-volt EV architectures, with higher energy costs accelerating EV demand. The China passenger vehicle market declined by 6% in Q1, but new energy vehicle exports continue to show strength, indicating EV adoption is extending beyond the China domestic market. Policymakers are pushing for greater transparency in U.S. data center energy use, reinforcing the trend towards power density and efficiency. Rising energy costs and declining battery prices are accelerating the economics of energy storage systems. The analog industry experienced a muted second half last year, and the global SAAR (Seasonally Adjusted Annual Rate) for automotive is relatively flat. The market is recovering faster than many had expected, leading to increased short lead-time orders and slightly stretched lead times across the board. Some automotive OEMs are beginning to explore directed or direct semiconductor sourcing.	Where Things Are HeadedON Semiconductor Corporation expects this quarter to mark a clear inflection point, with the company now on a path to recovery. They anticipate sequential gross margin expansion throughout 2026, with larger step functions expected in the second half of the year. Longer term, the company projects another 200 basis points of gross margin improvement from FabRight initiatives and over 200 basis points from favorable product mix, potentially leading to gross margins over 50%. GaN revenue is expected to begin in 2027. AI data center revenue is projected to double year over year in 2026. The company expects to outpace power semiconductor growth for the energy storage market in 2026, with over 40% revenue growth year over year and market share approaching 60%. For Q2 2026, revenue is guided to be in the range of $1.535 billion to $1.635 billion, with an incremental $30 million to $40 million of non-core revenue exits planned. Excluding these exits, Q2 revenue is expected to increase approximately 7% at the midpoint and be above seasonal. The second half of 2026 is expected to outgrow the first half. The company does not anticipate further non-core exits beyond 2026. Capital intensity is expected to remain in the mid-single-digit percentage of revenue for the foreseeable future, including 2027. Full utilization (low nineties) would require revenue 25% to 30% higher than current levels. Lead times have stretched slightly from 23 weeks in Q4 to 26 weeks in Q1.	Updates On ThemeActive	Broader Themes EmergingPolicymakers pushing for greater transparency in U.S. data center energy use. Automotive OEMs are increasingly moving towards directed or direct semiconductor sourcing. The semiconductor market is operating at two speeds, with AI data centers accelerating rapidly while industrial and automotive are recovering, creating a procurement window for industrial buyers.	Bullish-Leaning Quotes (Short)“This quarter marks a clear inflection point for ON Semiconductor Corporation.” “This cycle has found its low point, and we are now on a path to recovery.” “Our AI data center business is accelerating, with Q1 revenue growing more than 30% quarter over quarter and doubling year over year.” “We expect sequential gross margin expansion throughout the year.” “We expect the second half to outgrow the first half.”	Bearish-Leaning Quotes (Short)“As expected, there was roughly $50 million of planned non-core exits in the quarter.” “We expect to exit an incremental $30 million to $40 million of non-core revenue in the second quarter.” “Automotive in Q2 we think will be roughly flat.” “Automotive has not seen a recovery yet.” “The anxiety is there. I am starting to get calls. We are on allocation in certain technologies.”

2026-02-09

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)
About Expanding Eligible Marketonsemi is aggressively expanding its Total Addressable Market (TAM) through the Treo Platform, which has a design funnel exceeding $1 billion and is moving into medical (Dexcom glucose monitors), HVAC, and energy storage. The AI data center 'Power Tree' opportunity is scaling rapidly, with management projecting content per rack could reach $105,000 by 2030. Additionally, the company is targeting the transition to zonal architectures in automotive, where they have a $400 million design funnel for SmartFETs and Ethernet transceivers, and the aerospace/defense sector, which saw 70% year-over-year growth.	About CompetitionManagement positions onsemi as the 'only broad-based U.S. power semiconductor supplier' capable of addressing AI power density bottlenecks, a key advantage amid national priorities for resilient infrastructure. Their proprietary 'GaN-on-GaN' (vertical GaN) technology is cited as a multiyear competitive advantage for high-voltage applications over lateral GaN competitors. The company is also intentionally exiting volatile noncore businesses to avoid commodity-level price competition, focusing instead on high-barrier industrial and automotive segments.	About The Broader IndustryThe semiconductor industry is showing signs of a cyclical floor; automotive inventory digestion is largely complete, and global PMI trends suggest the industrial sector has bottomed. A structural shift is occurring in automotive toward 'Software-Defined Vehicles,' with 40% of new vehicles expected to feature zonal architectures within 5-8 years. In the AI space, infrastructure is migrating toward higher voltage bus architectures to solve power efficiency bottlenecks.	Where Things Are Headedonsemi expects to return to year-over-year growth in Q1 2026, marking the end of a three-year downturn. Gross margins are projected to expand throughout 2026 as 'Fab Right' actions reduce depreciation by $45M-$50M and utilization rates recover from a low of 68% toward the 90% range. Revenue from lateral GaN is expected to begin in 2026, followed by vertical GaN (vGaN) in 2027, while AI data center revenue is forecasted to grow in the high-teens percentage-wise in the near term.	Updates On ThemeSensing	Broader Themes EmergingResilient and regionalized supply chains are becoming a primary procurement driver, particularly in AI infrastructure and industrial automation. There is also a notable convergence of automotive power technology (800V systems) being applied to AI data center power rails.	Bullish-Leaning Quotes (Short)"AI data center is increasingly becoming a meaningful growth engine."; "Automotive inventory digestion is largely behind us."; "We believe we have seen the bottom for industrial."; "This marks the first quarter with expected year-over-year growth since the downturn started over 3 years ago."	Bearish-Leaning Quotes (Short)"Q4 gross margin includes approximately 700 basis points of underutilization charges."; "We expect to exit $50 million of noncore revenue in the first quarter."; "Tier 1 layer... running on thin margins and they can't afford the capital [to restock]."

NotesTable

Date	Comment	Comment Type	Comment Sentiment	Link	Price Reaction
2026-02-09	ON Semiconductor signaled a cyclical inflection point, reporting a Q4 beat and Q1 guidance marking its first year-over-year growth in three years. The market reacted positively (+3.5%) to stabilization in automotive and industrial sectors, alongside rapid AI data center scaling ($250M+ FY25 revenue). Investors prioritized management's "Fab Right" margin expansion and high-value product transitions over the $300 million headwind from intentional non-core business exits.	Earnings Transcript	Neutral		+3.50% (vs SPY: +3.76%)

Upcoming Events2 rows

Catalyst ID	Estimated Timing	Estimated Date Start	Estimated Date End	Catalyst	Why It Matters	Ticker Or Theme Specific	Transcript Date	Source Type
ON_8f8e8cd8	September 16	2026-09-16	2026-09-16	ON Semiconductor Analyst Day in New York.	This event provides a platform for management to detail strategic initiatives, updated market opportunities, and financial outlook, which can significantly influence investor perception and valuation.	Ticker	2026-08-03	earnings_transcript
ON_872d424a	We are implementing a second round of price increases	2026-08-10	2026-09-30	Implementation of a second round of price increases to offset rising input costs.	This action is crucial for offsetting increasing raw material and external manufacturing costs, supporting the company's gross margin targets and overall profitability.	Ticker	2026-08-03	earnings_transcript