B.Riley cuts ON Semiconductor stock price target on revised outlook
B.Riley reduced its price target for ON Semiconductor (NASDAQ:ON) to $97 from $105, maintaining a Buy rating. The firm cited the company's Q3 2026 results and Q4 guidance, which slightly exceeded estimates. ON Semiconductor reported strong AI data center sales growth and raised its 2026 and 2027 sales targets. The stock is currently undervalued relative to its Fair Value of $78.84, according to InvestingPro data.
How this was made
The 30-second read
Why it matters
The analyst's target reduction provides a fresh data point for traders, potentially prompting short‑term selling pressure while the underlying growth initiatives remain positive.
Market read
The price‑target cut is a primary market‑moving event for ON Semiconductor, offering a timely trading signal.
What to watch
The company announced a $600 million Ferric voltage regulator deal and strong AI data‑center sales, which could support longer‑term upside.
Background
B.Riley adjusted its valuation model after ON Semiconductor's Q3 earnings beat and new guidance, excluding certain deals from its analysis.
Ticker impact
B.Riley lowered ON Semiconductor's price target to $97 from $105 after the company's Q3 fiscal 2026 results and Q4 guidance were released.
likely pressure as the market prices in the lower target
The target reduction follows fresh earnings and guidance, providing a concrete catalyst for short‑term price movement.
Market effects
The downgrade may weigh on the broader semiconductor sector as investors reassess AI‑related demand forecasts.
US semiconductor exposure could see modest pullback in tech‑heavy indices.
Limited to markets tracking US chip makers; no immediate global ripple.
Counterpoint
Despite the target cut, the stock still shows ~39% upside to the new target, suggesting a buying opportunity if the market overreacts.
Key entities
- companyON Semiconductor
US-listed semiconductor manufacturer (ticker ON).
- analyst_firmB.Riley
Equity research firm that issued the price‑target change.
