TXN's Data Center Sales Double: Will This Growth Rate Continue in 2026?

ON Semiconductor's stock fell 9% to $66.60 during its investor day after the company reduced its total addressable market estimate by $30 billion. CEO Hassane El-Khoury attributed the change to procedural reasons, but investors reacted negatively. The company's forward P/E is near 17, while its trailing P/E is 47, leaving little room for error. The Synaptics deal is expected to close in mid-2027, and design wins in NVIDIA's MGX ecosystem are yet to translate into visible revenue.

Analog Devices' (ADI) Industrial segment grew 53% YoY to $1.97B in Q3 2026, driven by automation, energy, and aerospace demand. ADI expects high-single-digit sequential growth next quarter. ADI's stock is up 33.5% YTD, trading at a 9.71X forward P/S ratio, above industry average. Analysts project 66.4% YoY earnings growth for fiscal 2026.

Several sectors, including asset managers, semiconductor stocks, and silver miners, experienced significant declines following Fed Chair Kevin Warsh's press conference. ON Semiconductor (NASDAQ:ON) led the drop, falling 6%, while Boeing (NYSE:BA) weighed on the Dow. Economists are divided on future rate hikes, with some expecting more hikes and others predicting easing next year.

ON Semiconductor (ON) shares fell 8% after its Financial Analyst Day. The company introduced the Embedded Power Platform and outlined a $213B market opportunity by 2030. The stock dropped despite the announcements, partly due to a lack of near-term financial clarity and macroeconomic pressures, including the Fed's rate hike. The stock is now 50% below its 52-week high.

Bank of America raised its 2030 global semiconductor sales forecast to $3.2T, up from $2.7T, citing strong AI-driven demand. The firm upgraded price targets for Nvidia (NVDA), AMD (AMD), Marvell (MRVL), Applied Materials (AMAT), and Lam Research (LRCX), all rated Buy. Chip stocks rebounded modestly on Sept. 15 after recent sell-offs.

ON Semiconductor (ON) reported Q2 adjusted EPS of $0.74, beating estimates, and revenue of $1.60B, also topping forecasts. Q3 guidance is $0.81-$0.93 EPS and $1.7B-$1.8B revenue. Infineon (IFNNY) has outperformed ON with 80.1% 52-week and 53.6% YTD gains. Analysts rate ON 'Moderate Buy' with a $104.50 mean target, implying 37.2% upside.