AlphAIAlphAI — Financial news for AI agents
proactiveinvestors.comSEP 232 min read$ON

Onsemi well positioned for rising data center power demand, Jefferies says

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.

Original reporting
proactiveinvestors.com
Published Sep 23, 2026, 9:15 PM UTC
Analysis
AlphAI AI DeskAI-generated
Added to AlphAI Sep 23, 2026, 9:24 PM UTC. Informational, not investment advice.
How this was made
AlphAI summarizes source reporting and applies a structured AI analysis for relevance, timing, sentiment and ticker impact. Always verify material claims with the original publisher.
About AlphAI AI DeskScoring methodologyReport an issue
Onsemi well positioned for rising data center power demand, Jefferies says — source image
Source · proactiveinvestors.com
Decision brief

The 30-second read

$ONBullishMed
01

Why it matters

The upgrade may attract short‑term buying interest and lift sentiment.

02

Market read

Analyst upgrade highlights growth opportunities that could influence sector peers.

03

What to watch

Potential supply‑chain constraints for silicon‑carbide and gallium‑nitride components.

Relevance 7/10Novelty 6/10Timing: today

Background

Jefferies analyst commentary on Onsemi's positioning in the growing data‑center power market.

Company-level read

Ticker impact

$ONBullishMedium confidence
Context

Jefferies raised its 2026-27 revenue and EPS forecasts for Onsemi and highlighted new data‑center power opportunities.

Expected impact

Potential modest price appreciation over the next weeks.

Evidence & confidence

Higher margin outlook and new product revenue timelines could improve earnings visibility.

Market effects

Sector

Boosts outlook for data‑center power‑semiconductor segment.

Regional

May benefit US semiconductor and data‑center equipment makers.

Global

Supports broader AI‑infrastructure investment theme.

Counterpoint

What could challenge this read

If margin targets are overly optimistic, the upgrade could be premature.

Key entities

  • company
    Onsemi

    US‑listed semiconductor manufacturer (NASDAQ:ON).

  • analyst
    Jefferies

    Equity research firm providing the upgrade.

Read at source← All news

Related articles

SEP 17
$ONMed

CEO Claims Investors Got It Wrong on $30 Billion Shortfall as ON Stock Plummets 9%

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.

aol.com2 min
SEP 16
$ONLow

Asset Managers, Chips And Silver Miners Lead The Post-Warsh Slide - Boeing (NYSE:BA), ON Semiconductor (N

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.

benzinga.com2 min