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ON Semiconductor Receives Buy Rating With $110 Price Target on Chip Recovery

BullishMedium impact
ON$73.36 −4.34%

Analyst Gary Mobley initiated coverage on ON Semiconductor Corporation (ON) with a Buy rating and set a price target of $110 per share. The price target indicates potential upside of nearly 50% from the previous closing price of $73.36. The analyst highlighted the chipmaker as a strong opportunity to participate in expanding semiconductor industry momentum.

The growth outlook extends beyond artificial intelligence data centers, with expanding vehicle chip content serving as a key driver. At a recent investor event, the company outlined plans for artificial intelligence data center revenue to more than double in both 2026 and 2027 before exceeding $2.5 billion annually by 2030. Overall revenue is targeted to grow at a compound annual rate of 12% to 14% between 2026 and 2030, supported by demand in automotive, industrial, and data center markets.

Recent business activity includes supplying silicon carbide hybrid power modules to Sungrow for energy storage systems and revising an agreement to acquire Synaptics (SYNA) in a $5.7 billion cash transaction. For the third quarter, revenue is projected between $1.65 billion and $1.75 billion, up from $1.60 billion in the second quarter.

Key points

  • Analyst Gary Mobley initiated coverage on ON Semiconductor with a Buy rating and a $110 price target.
  • The company projects artificial intelligence data center revenue to exceed $2.5 billion annually by 2030.
  • Onsemi targets compound annual revenue growth of 12% to 14% from 2026 to 2030 across key end markets.
  • Third-quarter revenue guidance is set at $1.65 billion to $1.75 billion, up from $1.60 billion in Q2.

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Questions and answers

What is the new price target for ON Semiconductor?

An analyst assigned a Buy rating and a $110 price target on ON Semiconductor, representing nearly 50% upside from its previous close of $73.36.

What is Onsemi's long-term growth outlook for AI data centers?

Onsemi expects revenue from artificial intelligence data centers to more than double in 2026 and 2027, ultimately topping $2.5 billion annually by 2030.

What is Onsemi's revenue guidance for the third quarter?

Onsemi expects third-quarter revenue to range between $1.65 billion and $1.75 billion, compared with $1.60 billion reported in the second quarter.