ON Semiconductor (ON) Receives a Rating Update from a Top Analyst

Jefferies believes Onsemi (NASDAQ:ON) is well positioned to benefit from rising data center power demand. The broker argues that concerns about margins are overstated and expects margins to rise with volume increases and cost reductions. Jefferies raised its 2026 and 2027 revenue estimates and 2027 EPS forecast, citing favorable pricing and new product wins.

Valens Semiconductor (VLN) and onsemi (ON) agreed to develop a 3MP automotive camera sensor with MIPI A-PHY connectivity. The partnership aims to simplify camera design and reduce costs for automakers. Valens' technology will be integrated into onsemi's image sensors, targeting high-volume production. No financial details or launch date were disclosed.

ON Semiconductor (ON) shares fell 9% post-analyst day. Q2 2026 revenue hit $1.6B (+9.18% YoY), beating estimates. Adjusted EPS $0.74, free cash flow $425M. CFO expects margins to reach 53% by 2028. Analysts are split; stock trades at 11.96x NTMEV/EBITDA. TIKR's mid-case target is ~$145, ~118% potential return. Q3 results in November may clarify outlook.

ON Semiconductor (ON) has fallen 43.84% in three months to $68.30, despite strong Q2 results. Analysts remain bullish, with an average price target of $106.88, and Susquehanna sees 120% upside. The company's focus on AI data centers and silicon carbide chips drives optimism, though concerns include automotive weakness and China exposure.

Analysts from J.P. Morgan, Piper Sandler, Bank of America, and Morgan Stanley issued bullish ratings for Q2 Holdings (QTWO), Apple (AAPL), and ON Semiconductor (ON). QTWO has a $76.30 avg. price target, AAPL has a $336.11 avg. target, and ON has a $107.61 avg. target. Analysts cited in the article have varying track records.

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.