ON Semiconductor Exceeds Q2 Earnings Forecasts Amid AI Growth

ON Semiconductor Corp reported second-quarter earnings that exceeded expectations and provided third-quarter guidance above Wall Street projections. CEO Hassane El-Khoury reaffirmed that revenue from AI data centers is projected to more than double by 2026. Despite these gains, the company's revenue grew by 9% in the second quarter of fiscal 2026, a figure trailing competitors Texas Instruments Incorporated and STMicroelectronics, which saw growth of 23% and 26% respectively.

Robert W. Baird analyst Tristan Gerra increased the company's price target to $108 but maintained a Neutral rating. Gerra cited concerns over market share losses in the analog, industrial, and automotive sectors. He further identified the company's limited internal manufacturing capacity as a potential competitive disadvantage in the current market.