ON Semiconductor Corporation provides intelligent sensing and power solutions in Hong Kong, Singapore, the United Kingdom, the United States, and internationally. It operates through three segments: Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group. The Power Solutions Group offers discrete, module, and integrated semiconductor devices for power conversion, including power switching, signal conditioning, and circuit protection. The Analog and Mixed-Signal Group designs analog and mixed-signal solutions such as power management, sensor interface, connectivity, and standard products for automotive, industrial automation, AI data centers, computing, and mobile end markets. The Intelligent Sensing Group develops CMOS image sensors, image signal processors, short-wave infrared sensors, and photon-counting technologies including single-photon avalanche diode arrays and silicon photomultiplier devices for depth sensing, factory automation, safety systems, and robotics. Incorporated in 1992, ON Semiconductor Corporation is headquartered in Scottsdale, Arizona.
Subaru Partners With onsemi to Evaluate Embedded Power Platform for Future EVs
Subaru has entered a strategic collaboration with onsemi to evaluate its Embedded Power Platform, a step toward integrating next-generation power architectures into future electric vehicles. Under the partnership, Subaru gains early access to engineering samples and technical expertise as it assesses whether onsemi's power semiconductor integration can deliver scalable, efficient solutions for vehicle electrification. The two companies said the work will explore how a more integrated power system design can improve vehicle performance, efficiency and design flexibility as automakers expand their electrified lineups. The collaboration was announced by onsemi on GlobeNewswire.
ON Semiconductor Shares Fall 9% as Investor Day TAM Drops $30 Billion
ON Semiconductor shares closed down 9.02% at $66.60 after its own investor day, where the total addressable market presented was $213 billion, $30 billion below the $243 billion figure the company cited in June when it announced the Synaptics acquisition. CEO Hassane El-Khoury told CNBC the smaller number reflects the core onsemi business, since the Synaptics deal, expected to close in mid-2027, keeps the two companies separate until antitrust review concludes. He described the AI data center growth assumption as anchored to a 30% market, the middle of the range, plus 10 points of outgrowth, a claim testable only through design wins such as expanded content in the NVIDIA MGX ecosystem, two power-supply platform wins with Great Wall in China, and AWS power-supply and battery-backup content in the United States. Management's 53% gross margin target compares with a Q2 non-GAAP gross margin of 39.3%, and the company's sensitivity of 25 to 30 basis points of gross-margin improvement per point of utilization shows how much depends on volume that has not yet arrived. The stock carries a forward P/E near 17 against an average analyst target of $106.88, while a trailing P/E of 47 leaves little room for another miss.
onsemi Unveils Embedded Power Platform, Plans 2026 Sampling
onsemi unveiled its Embedded Power Platform, a wafer-level power solution that integrates silicon, silicon carbide and gallium nitride dies to deliver higher power density and system-level co-optimization for AI infrastructure and electrified vehicles, with sampling planned to begin in 2026. The company also announced a technology engagement giving Subaru early access to the platform, a move that highlights how closer co-design around compact, efficient power electronics could influence future electrified vehicle architectures and development timelines. The platform fits onsemi's push to move more of its portfolio into higher-margin, system-level power solutions, coming after Q2 2026 results showed a return to profitability following a large one-off loss, with management guiding Q3 revenue to US$1,650 million to US$1,750 million. The company's narrative projects $9.0 billion in revenue and $2.5 billion in earnings by 2029, requiring 13.0% yearly revenue growth and about a $1.9 billion earnings increase from $630.2 million today. Near-term risks remain, including underutilized fabs and dependence on a still cyclical auto market.
Bank of America Forecasts Semiconductor Market Nearly Doubling to $3.2 Trillion by 2030
Bank of America forecasts the global semiconductor market will nearly double to $3.2 trillion by 2030 from $1.7 trillion in 2026, citing AI infrastructure, memory and data-center demand that remains far stronger than recent fears suggest. Analysts led by Vivek Arya wrote that despite rising concerns about a potential AI infrastructure and investment slowdown, they see no signs of slowing in customer orders, long-term agreements, capacity commitments or semiconductor pricing. The bank pointed to Nvidia B200 rental pricing at $5.72 per hour, up consistently over the past two months and less than 10% below its March peak of roughly $6.10, while AMD has also indicated it is not seeing weakening customer orders. Within the total, memory is expected to remain the biggest growth engine, with sales rising to $1.8 trillion by 2030 from $937 billion in 2026, core semiconductors projected to increase to $1.35 trillion from $739 billion, server-related sales jumping to $848 billion from $359 billion, and wafer-fabrication-equipment spending more than doubling to $359.8 billion from $155.9 billion. BofA sees Nvidia and AMD as resilient compute plays, Marvell in networking, and Analog Devices and onsemi in analog, while Micron, Lam Research, Applied Materials and Intel could also outperform if sector momentum improves; the key risk is whether hyperscalers eventually slow AI capital spending.
onsemi Targets $213 Billion Market Opportunity by 2030
onsemi outlined a long-term growth strategy aimed at capturing a $213 billion total addressable market by 2030 across automotive, industrial, AI data center and emerging applications. The Scottsdale, Arizona-based chipmaker said power density has become the defining engineering constraint as AI, electrification and automation scale, and that it will leverage its power and sensing portfolio to address it. President and CEO Hassane El-Khoury said the company has spent years building expertise across power and sensing to help customers deliver more energy while consuming less space. onsemi highlighted three technology platforms it expects to drive growth: high-voltage technologies spanning silicon, silicon carbide and gallium nitride, including a differentiated vertical gallium nitride offering exclusive to the company; the Treo platform for high-precision analog, high-density digital and high-voltage intelligence; and the Embedded Power Platform, which uses the silicon wafer itself as the package to integrate silicon, SiC and GaN devices in a single wafer-level architecture. The company said the convergence of its end markets around common technology requirements allows it to deploy shared platforms across multiple applications and grow faster than the markets it serves.
Texas Instruments Data Center Sales Double as AI Spending Lifts Growth
Texas Instruments' data center revenues doubled year over year in the second quarter of 2026 and rose about 20% sequentially, making data center one of the company's three strongest growth markets alongside industrial and automotive. CEO Haviv Ilan said on the earnings call that the company expects to outgrow the data center market in 2026, supported by research and development investments and its ability to supply customers, and management said it has clean-room capacity available and plans to equip facilities as needed. The industry's move toward 800-volt architectures, which can require several power-conversion stages, is expected to increase the analog and embedded content used in data centers. Rival Analog Devices posted third-quarter fiscal 2026 revenues of $4.02 billion, up 40% year over year, with communications revenues surging 84% on data center demand, while ON Semiconductor said its AI data center revenues grew more than 30% sequentially and more than doubled year over year in the second quarter of 2026 as total revenues rose 9.2% to $1.6 billion. ON Semiconductor management now expects 2026 revenues to more than double year over year and AI data center SiC revenues to grow nearly 60% in 2026. Texas Instruments shares have rallied 51.9% year to date, and the Zacks Consensus Estimate implies 2026 and 2027 earnings increases of 55.1% and 16.8%, respectively.
Texas Instruments Begins Customer Price Increases After Flat First Half
Texas Instruments has started implementing price increases, negotiated directly with customers, after keeping prices broadly stable through the first half of 2026, with the contribution expected to begin in the third quarter and continue into the fourth quarter and beyond. Management said on its second-quarter 2026 earnings call that only a small pricing contribution is expected to third-quarter growth, with most of the sequential revenue increase coming from higher unit volumes. Texas Instruments entered the cycle from strength, with second-quarter revenues up 23% year over year to $5.46 billion, operating profit up 47.8% to $2.31 billion and analog revenues up 26%. Rival Analog Devices raised global prices by an average of 15% in February 2026, a move expected to add about 50 basis points of sequential revenue growth in both its fiscal third and fourth quarters, after fiscal third-quarter revenues rose 40% year over year to $4.02 billion and adjusted gross margin expanded 330 basis points to 72.5%. ON Semiconductor raised prices on selected components in April 2026, focusing on power, industrial and data center segments, after second-quarter 2026 revenues rose 9.2% year over year to $1.604 billion and non-GAAP gross margin expanded 170 basis points year over year and 80 basis points sequentially to 39.3%.
Synaptics Agrees to $7 Billion All-Stock Acquisition by On Semi
Synaptics has agreed to be acquired by On Semi in an all-stocks deal worth $7 billion, as disclosed in the FPA Queens Road Small Cap Value Fund's second-quarter 2026 investor letter. The fund highlighted Synaptics as a key holding, noting its development of Astra, an integrated sensing, processing, and communication solution for IoT and edge AI, which was validated by a collaboration with Google Labs in 2025. Synaptics shares closed at approximately $95.08 on August 31, 2026, giving it a market capitalization of about $3.78 billion. The fund also reported a 27.02% return for the first half of 2026, outperforming its benchmark indices, and trimmed appreciated technology holdings during the AI-driven rally.
Synaptics CFO Resigns, No Successor Search Before ON Semi Merger
Synaptics announced that CFO Ken Rizvi has resigned effective immediately to pursue another opportunity, and the company will not search for a successor given its pending merger with ON Semiconductor. Rizvi will remain as an adviser through September 30, 2026, while CEO Rahul Patel will serve as principal financial officer until the merger closes, and former Chief Accounting Officer Kermit Nolan will return as a consultant to support the finance team. The all-stock acquisition, announced in June, values Synaptics at approximately $7 billion, with shareholders receiving 1.350 ON Semiconductor shares for each Synaptics share, a roughly 19% premium based on the companies' 10-day volume-weighted average closing prices. The deal is expected to close in mid-2027 and be accretive to non-GAAP earnings per share within 18 months, with anticipated annual synergies of approximately $200 million. Synaptics shares were up 1.84% at $99.80 during premarket trading on Friday.
Power Semis Rally on Mizuho's Faster NVIDIA Vera Rubin Ramp Signal
Wolfspeed, STMicroelectronics, and ON Semiconductor rallied Monday after Mizuho flagged a faster NVIDIA Vera Rubin ramp anchored by xAI and Meta starting in the fourth quarter of 2026. Wolfspeed rose 5.74% to $33.61, STMicroelectronics gained 4.17% to $56.56, and ON Semiconductor added 2.96% to $85.11. Mizuho expects strong VR200 NVL72 ramps in 2027, with 2027 CoWoS growing more than 75% and cloud service provider backlog now at $2.3 trillion, up 3.5 times year over year. ON Semiconductor says power content per rack rises from $15,000 to $115,000 under 800-volt DC architecture, with AI data center revenue expected to more than double in 2026. The next checkpoints are ON Semiconductor's Analyst Day on September 16, 2026, and NVIDIA's next quarterly update.
Bank of America analyst Vivek Arya lowered the price target on Onsemi to $120 from $138 while reiterating a Buy rating, even as he raised earnings estimates following the chipmaker's second-quarter results. Onsemi reported revenue of $1.604 billion, up 9% year-over-year, with non-GAAP diluted earnings per share rising to $0.74 from $0.53 a year ago. Arya lifted his 2026 EPS estimate to $3.20 from $3.12 and his 2027 estimate to $4.57 from $4.26, and he now models EPS reaching $6.15 in 2028 and roughly $12 by 2030, driven by AI data-center growth and margin expansion. The target cut reflects a lower valuation multiple of 20 times estimated 2028 earnings, down from a prior 32 times estimated 2027 earnings, amid semiconductor-sector multiple contraction. Onsemi guided third-quarter revenue between $1.65 billion and $1.75 billion, with non-GAAP EPS between $0.81 and $0.93, both midpoints above consensus.
ON Semiconductor Q2 revenue hits $1.6 billion, AI data center revenue expected to more than double in 2026
ON Semiconductor reported second-quarter revenue of $1.6 billion, a 6% sequential increase driven by accelerated demand in AI data centers, with non-GAAP gross margin expanding 80 basis points to 39.3% and non-GAAP earnings per share rising 16% to $0.74. The company now expects AI data center revenue to more than double in 2026, supported by design wins in the Nvidia MGX ecosystem and Amazon’s AWS power supply platforms, while energy storage systems revenue is forecast to grow approximately 40% year over year. Automotive silicon carbide revenue in China is projected to increase between 60% and 70% in 2026, reflecting market share gains with customers such as Geely Zeekr and Xiaomi. Free cash flow nearly quadrupled year over year to $425 million, and the company returned $332 million to shareholders through share repurchases. For the third quarter, ON Semiconductor guided revenue of $1.65 billion to $1.75 billion, non-GAAP gross margin of 40% to 42%, and non-GAAP earnings per share of $0.81 to $0.93.
Stocks Waver as Mixed Earnings and Chipmaker Rebound Offset Software Weakness
U.S. stocks were mixed on Thursday as a rebound in chipmakers and stronger-than-expected economic data helped offset a sell-off in software shares following disappointing earnings. The S&P 500 edged up 0.07%, the Dow fell 0.38%, and the Nasdaq 100 added 0.26%. Datadog tumbled over 14% after reporting second-quarter adjusted gross margin below consensus, dragging down other software names including Salesforce, Atlassian, and Workday. AppLovin sank 19% on a revenue miss, while memory chipmakers Western Digital and SanDisk fell sharply after SanDisk forecast first-quarter revenue of $10.30 billion to $10.80 billion, below the $11.16 billion consensus. Limiting losses, ARM Holdings rose more than 5% and ASML, ON Semiconductor, and Marvel Technology gained over 2%, while Paycom Software surged 22% after raising its full-year revenue outlook to $2.20 billion to $2.21 billion, above estimates. Weekly jobless claims rose by 1,000 to 199,000, better than the 205,000 expected, and second-quarter nonfarm productivity increased 1.4%, exceeding the 0.6% forecast. A Financial Times report that Fed Chair Warsh is willing to raise rates in September if inflation firms weighed on sentiment, while crude oil rose over 1% after Yemen's Houthi rebels said they targeted a Saudi oil tanker in the Gulf of Aden.
ON Semiconductor stock jumps as analysts see bigger AI opportunity ahead
ON Semiconductor stock rose about 2% on Tuesday after its second-quarter results and outlook drew favorable analyst views, with artificial-intelligence data centers emerging as an important source of demand. Jefferies maintained its Buy rating and $115 price target, noting AI data-center growth could outpace other analog markets. Susquehanna kept a Positive rating with a $150 target, citing progress in customer activity and lead times increasing by about five weeks on average. Morgan Stanley said the June quarter was broadly in line and the September outlook slightly ahead of expectations, with AI data-center demand remaining a key contributor.
ON Semiconductor Q2 earnings beat estimates on AI data center demand
ON Semiconductor reported second-quarter net income of $226.8 million, up from $170.3 million a year earlier, driven by accelerating demand from AI data center customers. Adjusted earnings reached $0.74 per share, surpassing the $0.71 consensus estimate from FactSet-polled analysts, while revenue rose 9% to $1.6 billion, slightly above the $1.59 billion projection. The company's Power Solutions Group led growth with a 19% revenue increase to $829 million, and free cash flow quadrupled to $425.4 million. Looking ahead, ON Semiconductor guided for third-quarter revenue between $1.65 billion and $1.75 billion and adjusted earnings of $0.81 to $0.93 per share, bracketing the FactSet consensus of $0.83 per share on $1.67 billion in revenue.
McDonald's, Caterpillar, Palantir lead premarket moves on earnings beats
Several major companies saw significant premarket stock moves following their latest quarterly earnings reports. McDonald's gained 1.9% after posting adjusted earnings of $3.38 per share, beating the LSEG consensus of $3.32, though revenue of $7.1 billion missed the expected $7.13 billion. Caterpillar climbed 8% after reporting adjusted earnings of $8.17 per share on revenue of $20.54 billion, both exceeding analyst expectations of $6.20 per share and $19.34 billion. Palantir Technologies surged 15% on second-quarter results driven by a nearly 150% jump in U.S. commercial revenue. Merck rose more than 1% after losing an adjusted 13 cents per share on revenue of $16.61 billion, better than the anticipated loss of 27 cents per share on $16.36 billion, and raised its full-year revenue guidance. Pfizer gained after beating estimates with adjusted earnings of 77 cents per share on revenue of $15.03 billion and increasing the low end of its full-year revenue outlook. On Semiconductor jumped 7% on better-than-expected second-quarter results and margins. Snap rose 5% after revenue of $1.6 billion topped the $1.54 billion estimate, with global daily active users and average revenue per user also exceeding expectations. Whirlpool was little changed after a larger-than-expected adjusted loss of 21 cents per share and a lowered full-year earnings forecast. Wayfair fell 4% despite beating estimates with earnings of 95 cents per share on revenue of $3.52 billion. DigitalOcean plunged 11% even though second-quarter earnings of 45 cents per share on revenue of $281 million surpassed analyst expectations.
Palantir, Snap, and ON Semiconductor lead Tuesday's biggest stock movers
Palantir Technologies, Snap, and ON Semiconductor were among the biggest stock gainers on Tuesday, while Powell Industries led the losers. Palantir shares surged 15% after crushing second-quarter results and raising its full-year outlook, with revenue jumping 93% year-over-year to $1.94 billion and its fiscal 2026 revenue forecast lifted to $8.15 billion to $8.16 billion. Snap gained 9% on better-than-expected second-quarter earnings, 19% revenue growth to $1.6 billion, and daily active users reaching 493 million. ON Semiconductor climbed 7% after issuing stronger-than-expected third-quarter guidance, forecasting revenue of $1.65 billion to $1.75 billion and adjusted earnings per share of $0.81 to $0.93. Powell Industries fell 14% despite a 158% surge in new orders to $934 million, as its quarterly revenue of $312 million and earnings per share of $1.42 missed estimates.
Onsemi expects AI data center revenue to more than double in 2026
Onsemi expects its AI data center revenue to more than double in 2026, as the company guided third-quarter earnings per share to a range of $0.81 to $0.93. The chipmaker reported second-quarter revenue of $1.6 billion, with non-GAAP gross margin of 39.3% and non-GAAP diluted earnings per share of $0.74, all above the midpoint of its guidance. Management noted that supply is tightening in several growth areas, lead times are extending, and the company prioritized AI data center shipments over automotive and industrial segments in the quarter. Onsemi also announced an agreement to acquire Synaptics, with the transaction expected to close in mid-2027, and is implementing a second round of price increases to offset rising input costs. Free cash flow nearly quadrupled in the quarter, reaching $425 million, and the company returned $332 million to shareholders through share repurchases.
US Stocks Extend Gains, Dow Hits Record High on Renewed Iran Peace Talks
US stocks extended their rally, with the Dow Jones Industrial Average closing up 693.38 points at 53,178.41 and the Nasdaq Composite up 540.05 points at 25,913.90. Investor sentiment improved after President Trump called off a planned large-scale attack on Iran over the weekend and announced a resumption of negotiations, sending stocks higher after the open. A rise in the ISM manufacturing index, lower oil prices, and falling interest rates also provided a tailwind, pushing the Dow to a new all-time high. By sector, media and entertainment as well as software and services gained, while energy declined. Among individual stocks, Bristol Myers Squibb rose on reports of merger talks with AstraZeneca, and Boeing advanced on certification of the 737 Max 10. AMC Entertainment and IMAX were bought up after setting new weekend box office records, but Marriott fell after its third-quarter outlook missed expectations. Palantir Technologies and ON Semiconductor were being bought in after-hours trading following their earnings releases.
Palantir, Vertex, and Diamondback lead after-hours earnings reports for August 3, 2026
A slate of major companies including Palantir Technologies, Vertex Pharmaceuticals, and Diamondback Energy are set to report quarterly earnings after the market closes on August 3, 2026. Palantir is expected to post earnings per share of $0.28, a 115.38% jump from the same quarter last year, while Vertex's consensus stands at $4.30, up 7.50%. Diamondback Energy's forecast of $6.08 per share represents a 127.72% surge, though it missed estimates in the fourth quarter of 2025. Other notable reports include ONEOK with a consensus of $1.39, ON Semiconductor at $0.72, and SBA Communications at $2.76, which would mark a 12.93% decline year-over-year. Sterling Infrastructure is projected to deliver $5.00 per share, a 96.08% increase, and Jazz Pharmaceuticals is expected to swing to $5.06 per share after a large miss in the prior-year quarter.
onsemi to report earnings Monday with revenue expected to grow 8.2%
Analog chip maker onsemi is set to report earnings Monday after the bell, with analysts expecting revenue to grow 8.2% year on year, a reversal from the 15.4% decline in the same quarter last year. The company beat revenue expectations last quarter, reporting $1.51 billion, up 4.7% year on year, and also exceeded EPS and forward guidance estimates. Analysts have largely maintained their estimates over the past 30 days, though onsemi has missed revenue estimates multiple times over the last two years. Among analog semiconductor peers, Monolithic Power Systems posted 47.6% revenue growth and beat estimates by 8.6%, while Impinj grew 10.7% and beat by 3.5%, with both stocks rising after results. onsemi shares are down 14.2% over the past month, compared to a 12.7% average decline for the group, and it enters earnings with an average analyst price target of $113.12 versus a current price of $81.34.
Microchip Technology Expected to Beat Earnings Estimates on Strong Revenue Growth
Microchip Technology is expected to report a significant year-over-year increase in earnings and revenue for the quarter ended June 2026, with analysts projecting earnings of $0.70 per share on revenues of $1.46 billion. The Zacks Consensus Estimate for earnings has been revised 1.61% higher over the last 30 days, and the Most Accurate Estimate is above the consensus, yielding a positive Earnings ESP of +2.16%. Combined with a Zacks Rank of 2, this suggests the company is likely to beat the consensus EPS estimate. In the previous quarter, Microchip Technology posted earnings of $0.57 per share, surpassing the $0.50 estimate by 14%, and it has beaten estimates in each of the last four quarters. For comparison, ON Semiconductor Corp., another player in the analog and mixed-signal semiconductor industry, is expected to report earnings of $0.72 per share on revenues of $1.59 billion, with an Earnings ESP of +2.02% and a Zacks Rank of 3, also indicating a likely beat.
Semiconductor Stocks Plummet on China Competition and AI Demand Doubts
Semiconductor stocks including Lam Research, Monolithic Power Systems, Marvell Technology, Micron, and onsemi fell sharply amid a broad global sell-off driven by fears of increased Chinese competition and doubts about the sustainability of AI-related demand. Lam Research dropped 6.5%, Monolithic Power Systems fell 3.5%, Marvell Technology declined 7.4%, Micron lost 8.4%, and onsemi slid 5%. The declines were part of a wider rout that saw Amkor plunge nearly 24% after its third-quarter revenue guidance missed estimates, while Vishay Intertechnology, FormFactor, and Penguin Solutions fell roughly 9% to 11%. Investor anxiety was heightened by reports of China's progress in advanced chip manufacturing, including mass production of homegrown immersion deep ultraviolet lithography machines and the strong stock market debut of Chinese competitor ChangXin Memory Technologies, sparking fears of future memory chip oversupply and pricing pressure.
US Chip Stocks Fall on New Tariffs Targeting Semiconductor Supply Chain
Shares of Micron, onsemi, Seagate, Western Digital, and Vishay Intertechnology fell in morning trading after the U.S. government announced new tariffs of 10% to 12.5% on 60 trading partners over forced labor concerns. The targeted nations include the European Union, Japan, South Korea, and Taiwan, which are fundamental pillars of the global semiconductor supply chain. Because many U.S. chipmakers rely on imported specialty chemicals, raw silicon wafers, fabrication equipment, and overseas assembly and test facilities, finished chips imported back into the U.S. could now face double-digit taxes under the new Section 301 tariffs. Investors are pricing in long-term margin compression across the U.S. hardware and semiconductor space, triggering a broad sell-off that amplified a global rout which began overnight with Asian chip heavyweights Samsung and SK Hynix. Micron fell 5.3%, onsemi fell 3.9%, Seagate fell 3.1%, Western Digital fell 4.5%, and Vishay Intertechnology fell 3.4%.
Semiconductor stocks diverge from record earnings as SOX index falls 20% below peak
Semiconductor stocks are experiencing a puzzling divergence from their underlying fundamentals, with the SOX index falling approximately 20% below its peak even as forward earnings estimates continue climbing to fresh records, according to Holger Zschaepitz, senior editor for Die Welt. Sector-wide full-year revenues are projected to top $1.3 trillion to $1.5 trillion globally, driven by the artificial intelligence infrastructure boom. Taiwan Semiconductor Manufacturing Co. recently beat quarterly estimates and raised its 2026 revenue growth outlook for the second time this year, while planning to invest an additional $100 billion to expand its U.S. chipmaking capacity, bringing its total investment plan to $265 billion. Memory chip specialists including Micron and SK Hynix are seeing massive revenue growth from AI, but severe price increases are squeezing non-AI consumer hardware margins. The intelligent power and sensors segment, represented by companies like ON Semiconductor, projects solid double-digit EPS growth, though gains are weighed down by macroeconomic uncertainties and geopolitical risks.
U.S. stocks extend selloff as semiconductors slump and Moonshot AI debuts Kimi-K3
Wall Street's major averages slid on Friday as global technology stocks declined, led by semiconductors and the debut of Moonshot AI's Kimi-K3. The benchmark S&P 500 was last down 0.5%, the Nasdaq Composite fell 1.1%, and the Dow was flat. The semiconductor sector slumped, with top decliners including Synopsys, Advanced Micro Devices, Intel, and ON Semiconductor. Chinese AI startup Moonshot debuted Kimi-K3, a 2.8 trillion-parameter system that claims to be the world's largest open-weight AI model. On the economic front, export prices unexpectedly fell in June while import prices rose, and industrial production rose less than expected.
ON Semiconductor to Acquire Synaptics in $7 Billion All-Stock AI Edge Bet
ON Semiconductor announced a definitive agreement to acquire AI edge solutions company Synaptics in an all-stock transaction valued at $7 billion. The deal aims to expand ON's capabilities from power and sensing technology into connected compute, targeting the physical AI market. Management expects the acquisition to add to earnings per share within 18 months of closing and to generate $200 million in synergies, primarily from operating expenses. The combined company is projected to have revenue of $7.8 billion, gross profit of $3.3 billion, and operating profit of $1.7 billion, with a total addressable market expanded by $30 billion to $243 billion by 2030. The announcement triggered a sharp sell-off in ON Semiconductor shares as investors reassessed the company's strategic shift.
U.S. stocks decline as lower tech stocks drag markets
Wall Street's major indexes were mostly lower on Thursday, with the S&P 500 and the Nasdaq Composite giving back gains from the earlier session amid weakness in global technology stocks. The benchmark S&P 500 was last down 0.6%, while the heavy-tech Nasdaq Composite fell 1.3%, and the blue-chip Dow slipped 0.4%. The technology sector came under pressure after South Korea's Kospi tumbled 7%, weighed down by a selloff in chip stocks, with top decliners including Sandisk, Seagate Technology, Western Digital, and ON Semiconductor. On the economic front, retail sales growth pace slowed in June as gas prices retreated, initial jobless claims unexpectedly fell in the prior week, and the Philly Fed Manufacturing Index blew past forecasts in July. U.S. pending home sales decreased by 5.4% in June, while the one-year U.S. inflation swap rate fell below the Federal Reserve's 2% inflation target for the first time since September 2024.
Analysts Raise ON Semiconductor Earnings Estimates as EV and AI Power Demand Builds
Analysts have raised near-term earnings and revenue estimates for ON Semiconductor Corp., even as the stock has lagged the broader market. Heartland Advisors pointed to the company's strength in power management and image sensing for electric vehicles and AI datacenters, along with its shift toward higher-margin products and more efficient manufacturing. The June launch of ON's Elite Pairing Studio is seen as directly supporting its push into silicon carbide power solutions for EVs and AI data centers, potentially reinforcing the earnings momentum analysts now expect. However, ongoing underutilized capacity could still weigh on margins, and the biggest risk remains soft auto and EV demand outside China keeping factories underused.
Heartland Mid Cap Value Fund Sees Upside for ON Semiconductor on Rising Power Demand
Heartland Mid Cap Value Fund highlighted ON Semiconductor Corporation as a beneficiary of rising power demand in its second-quarter 2026 investor letter. The fund noted that ON Semiconductor is a leader in silicon carbide semiconductors used in electric vehicles, renewable energy inverters, and high-power industrial equipment, and that the company has gained market share with leading global EV manufacturers. In AI datacenters, increasing power voltage requirements are driving adoption of ON's next-generation power management solutions, though datacenter-related revenue is expected to remain a materially smaller percentage of sales compared to its core automotive and industrial markets. After the stock more than doubled in price by early June and reached the fund's price target, Heartland reduced its weighting but intends to maintain a reasonably sized position, acknowledging that multiple drivers have come together simultaneously, creating potential for an intrinsic value scenario.
Microchip Technology and onsemi rise on cooler inflation and IBM AI hardware signal
Microchip Technology and onsemi shares rose over 3% in afternoon trading after a cooler-than-expected June inflation report and IBM's warning that clients are shifting budgets to AI infrastructure boosted semiconductor stocks. June core CPI was flat month-over-month, with a 2.6% year-over-year increase versus a 2.9% forecast, reopening the door to a friendlier interest rate environment. IBM CEO Arvind Krishna disclosed that second-quarter revenue missed expectations because enterprise clients abruptly redirected spending toward servers, storage, and memory to secure supply-constrained AI hardware ahead of anticipated price hikes. The combination of a macro tailwind and direct confirmation of sustained AI infrastructure demand lifted chip valuations, with the specific mention of memory purchases driving outsized gains in Micron and SanDisk. Additional optimism came from Intel's €5 billion investment in its Ireland facility to boost Xeon 6 processor production and Tower Semiconductor's expansion of 300mm manufacturing in Japan with government support.
Analog chip stocks poised for AI-driven gains, says Bank of America
Analog chipmakers are emerging as beneficiaries of the artificial intelligence infrastructure boom, according to Bank of America. The firm expects most AI-related sales across the analog chip group to grow 50% to more than 100% this year, driven by massive power management needs in AI data centers. Analyst Vivek Arya noted that after a prolonged inventory correction, customers are beginning to restock analog hardware as industrial demand improves, creating a positive backdrop for the second half of 2026. Bank of America highlighted Analog Devices, ON Semiconductor, Texas Instruments, and Allegro MicroSystems as key names poised for further gains.
Entegris, onsemi, and Power Integrations Shares Soar on Semiconductor Rebound
Shares of Entegris, onsemi, and Power Integrations surged in afternoon trading as semiconductor stocks rebounded on dip buying and reports that China may ease restrictions on advanced Nvidia AI chip imports. Entegris jumped 8.2%, onsemi gained 7.3%, and Power Integrations rose 7%. The sector-wide rally was fueled by a report that Chinese authorities may soon allow Alibaba, ByteDance, and DeepSeek to purchase a limited quantity of Nvidia H200 AI processors, capped under 200,000 units. Additionally, SK Hynix's $24.5 billion U.S. ADR offering was oversubscribed by more than seven times, signaling robust institutional demand for AI memory chips.
Semiconductor and optical stocks surge as US fab investments mount
Semiconductor and optical stocks surged on Thursday, rebounding from a recent sell-off as US manufacturing investments mount. Micron Technology jumped 8% after revealing it is accelerating its planned US fab and technology investments, increasing expected spend to more than $250 billion through 2035, up from $200 billion previously. Broadcom increased 4% after disclosing a partnership with Apple expected to exceed $30 billion, leading to production of over 15 billion US-made chips. Sandisk shares surged 11% as Wedbush raised its fourth-quarter revenue estimate to $8.89 billion from $8 billion, while Western Digital climbed 7%. AMD was up nearly 6% after announcing a collaboration with 5C on gigascale AI campuses, and onsemi popped nearly 8% after announcing the sale of two manufacturing facilities as part of its Fab Right strategy. Optical stocks also moved sharply higher, with Lumentum surging 12%, Applied Optoelectronics up 9%, Ciena climbing 6%, and Corning increasing 7%. The Philadelphia Semiconductor Index rose 4.6%.
onsemi to Divest Two Fabs, Expects $35 Million in Annual Savings
ON Semiconductor has agreed to sell its manufacturing facilities in Tarlac, Philippines, to Greatek Electronics and in Mountain Top, Pennsylvania, to Silex Microsystems, a move management says will optimize its manufacturing footprint and improve long-term economics. The transactions include structured transition plans and long-term supply agreements to ensure uninterrupted customer deliveries, with onsemi expecting approximately $35 million in annual cost savings beginning in 2027 and fully realized in 2028. The divestitures reinforce the company's Fab Right strategy by concentrating production in higher-efficiency facilities aligned with AI data centers, automotive, and industrial markets, and follow three consecutive quarters of gross-margin expansion to 38.5% in the first quarter of 2026. The company faces competition from Texas Instruments, which reported a 58% gross margin in the first quarter, and Navitas Semiconductor, which is targeting high-power gallium nitride and silicon carbide applications. Shares of onsemi have risen 68.2% year to date, and the Zacks Consensus Estimate for 2026 earnings is $3.09 per share, implying 31.5% growth from 2025.
Pomerantz Law Firm Investigates ON Semiconductor Over Synaptics Acquisition
Pomerantz LLP is investigating claims on behalf of investors of ON Semiconductor Corporation regarding potential securities fraud or unlawful business practices. The investigation follows ON Semiconductor's June 25, 2026 announcement of an all-stock agreement to acquire Synaptics Incorporated, with Synaptics shareholders to receive 1.35 shares of ON Semiconductor stock per share, representing an enterprise value of around $7 billion. ON Semiconductor's stock price fell $28.09 per share, or 23.66%, to close at $90.65 per share on June 26, 2026. Investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, extension 7980.
Broadcom vs. ON Semiconductor: Which Is the Better Buy in 2026?
Broadcom and ON Semiconductor present contrasting semiconductor investment cases for 2026. Broadcom posted fiscal 2025 revenue of nearly $63.9 billion, up about 23.9%, with net income of roughly $23.1 billion and free cash flow of nearly $26.9 billion, driven by AI-related demand. ON Semiconductor saw revenue decline about 15.3% to nearly $6.0 billion, with net income of roughly $121.0 million and free cash flow of nearly $1.4 billion, as it remains heavily tied to the automotive sector. Broadcom trades at a forward P/E of 31.5x and a price-to-sales ratio of 27.2x, while ON Semiconductor trades at 29.4x forward P/E and 5.9x price-to-sales. The analysis concludes Broadcom is the stronger option for investors focused on current earnings and cash flow, while ON Semiconductor may appeal to those betting on a cyclical recovery.
Cantor Fitzgerald Raises ON Semiconductor Price Target to $110
Cantor Fitzgerald raised its price target on ON Semiconductor Corporation to $110 from $100 while maintaining a Neutral rating. Analyst Matthew Prisco cited the AI infrastructure buildout as a durable generational semiconductor cycle, projecting industry revenue could reach roughly $3 trillion by 2029 and potentially exceed $3.5 trillion by 2030. Separately, ON Semiconductor agreed to acquire Synaptics in an all-stock deal valued at about $7 billion, its largest acquisition, with Synaptics shareholders receiving 1.350 Onsemi shares per Synaptics share, a 19% premium based on the 10-day volume-weighted average closing prices. CEO Hassane El-Khoury said the deal would speed Onsemi's push into physical AI and expand its addressable market by $30 billion to $243 billion by 2030.
ON Semiconductor shares plunge 21% after $7 billion Synaptics deal
ON Semiconductor shares fell roughly 21% on Friday, their worst single-day loss since 2020, after the chipmaker announced its largest-ever acquisition, a $7 billion all-stock deal for Synaptics. The transaction values Synaptics at a 19% premium based on recent average prices, with Synaptics shareholders set to own about 12% of the combined company, diluting existing ON Semiconductor investors. CEO Hassane El-Khoury framed the move as an entry into physical AI, combining ON Semiconductor's power and sensing hardware with Synaptics' edge AI and wireless connectivity to target a $243 billion addressable market by 2030. The company projects roughly $200 million in annual cost savings, but analysts caution that meaningful earnings benefits may not materialize until 2028 or 2029, well after the expected mid-2027 closing. Synaptics shares gained about 3% on the day.
TD Cowen Downgrades ON Semiconductor to Hold on Synaptics Acquisition Concerns
TD Cowen analyst Joshua Buchalter downgraded ON Semiconductor from Buy to Hold with a $110 price target, citing concerns over the company's planned $7 billion acquisition of Synaptics. The firm believes the deal adds complexity and distracts from ON Semiconductor's core automotive and data center growth story. Buchalter noted that Synaptics' neural processing units, which target edge and embedded AI applications, may be too niche to compete with established diversified players. The downgrade comes after ON Semiconductor's stock rose more than 100% year-to-date, and the firm views shares as fairly valued at about 25 times its 2027 earnings estimate.
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