ON Semiconductor CorporationNasdaq: ON
Information Technology · Semiconductors
$113.28
-4.20%
Vol: 8.2M
Research Digest
Wednesday, June 17, 2026
ON Semiconductor jumped in pre-market after Citi opened a 90-day positive catalyst watch and multiple firms raised price targets.
onsemi shares rose about 4.8% in pre-open trading after Citi initiated a 90-day catalyst watch, reiterating a Neutral rating with a $120 price target. Wells Fargo raised its target to $140 from $115 and Mizuho maintained an Outperform-equivalent view at $130, reflecting growing Wall Street conviction that the company's automotive and AI-data-center recovery is intact. The bullish thesis builds on Q1 2026 revenue of $1.513 billion that beat the midpoint of guidance, with management calling the cyclical trough behind it, plus a new GaNEXUS gallium nitride portfolio and an expanded EV collaboration with Geely. The stock is up over 110% year to date but still about 11% below its 52-week high. The bear case is crowding risk: a BofA survey showed 80% of managers view semiconductors as the most crowded trade ever, and ON's cash conversion remains pressured by high inventory.
Previous Market Intelligence
13 daysJun 16ON Semiconductor jumped about 5% after Citi raised its price target to $120 and added the stock to its 90-day upside catalyst watch ahead of the September analyst day.Positive▶
On June 15, 2026, Citi analyst Atif Malik raised his price target on ON Semiconductor to $120 from $100 while keeping a Neutral rating, and placed the stock on the firm's 90-day upside catalyst watch list ahead of ON's analyst day in September, where the company is expected to detail its data center revenue opportunity. Shares climbed roughly 5% on the news. Citi's new estimates call for EPS of $3.07 in 2026, $4.64 in 2027 and $6.00 in 2028, with the higher target reflecting a ~20x P/E on 2028 estimates versus the stock's 3-year average of 17x, driven by expectations for firmer pricing and a longer-lasting recovery in the analog semiconductor market. The move adds to recent bullish sell-side sentiment, with Wells Fargo earlier lifting its target to $140 from $115 (Overweight) and Mizuho at $130 (Outperform). The bear case is that Citi kept only a Neutral rating despite the higher target, the stock has already run up sharply year-to-date, and it now trades above its consensus mean price target, leaving valuation stretched if the September data center narrative disappoints. Execution on the AI/data center and automotive power pivot is the key swing factor.
Jun 15No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 14No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 21onsemi prices $1.3B zero-coupon convertibles; analyst targets surge on AI data center growthPositive▶
ON Semiconductor priced $1.3B of 0% convertible senior notes due 2031, closing May 11, 2026. Q1 2026 revenue $1.51B beat estimates, EPS $0.64 vs $0.61 expected. AI data center revenue grew 30%+ sequentially and management guided to double YoY in 2026. Citi raised PT to $100 from $68; Mizuho raised to $130 from $120. Stock traded around $108 on May 20, surging from mid-$80s in April. BofA, Jefferies, Needham, Deutsche Bank, Evercore raised targets to $110-$121 band.
May 20No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 19ON Semiconductor surged after Q1 beat and management guidance that AI data center revenue will double in 2026, drawing multiple PT hikes.Positive▶
ON Semiconductor reported Q1 (May 4) revenue $1.513B (above midpoint guidance) with AI data center +30% sequentially; EPS $0.64 vs. $0.61 expected. May 7 priced $1.30B 0% convertible senior notes due 2031. Management guided AI data center revenue to double YoY in 2026. May 14 Annual Meeting confirmed leadership transition. Stock surged from mid-$80s on April 20 to ~$115.69 on May 13 (+11.08% on May 13 alone). BofA, Jefferies, Needham, Deutsche Bank, Evercore ISI all hiked PTs into $110-$121 band with Buy/Overweight. Roth Capital to $125. Bear case: heavy automotive exposure remains a drag.
May 18No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 15ON Semiconductor priced $1.3B 0% convertible senior notes on May 7 as Citi raised price target to $100 from $68 after Q1 beat.Positive▶
ON Semiconductor priced a $1.3B 0% convertible senior notes offering due 2031 via Rule 144A private placement on May 7, following a proposed offering on May 6. Q1 2026 results beat with EPS of $0.64 (vs $0.61 est) and revenue of $1.51B (vs $1.49B est), with gross margin expanding to 38.5%. Operating cash flow reached $239M and free cash flow $217M, with growth driven by automotive and AI data center sectors. The company expects its AI data center business to double in 2026. Citi raised its price target to $100 from $68 on May 6. Shares traded $112.51-$117.55 on May 14. Risk: cyclical auto end-market softness and capital structure dilution from convertible.
May 14ON Semiconductor surges to 52-week high above $115 as analysts hike price targets to $125 on AI data center growthPositive▶
ON Semiconductor stock surged 10.48% to a fresh 52-week high of $115.99 on May 13, 2026, after Q1 2026 results and bullish AI-chip demand outlook. Roth Capital nearly doubled its target to $125 from $70; Truist raised to $101 from $66; Deutsche Bank to $110 from $75; Craig-Hallum to $85 from $60. Q1 EPS was $0.64 (beating $0.62 estimate) on revenue of $1.51B (slightly missing $1.53B estimate). Management expects AI data center revenue to double YoY in 2026, supported by the Treo platform ramp and leading position in high-voltage conversion. The company priced a $1.3 billion convertible notes offering in May. Sector also rallied on news that Nvidia CEO Jensen Huang joined President Trump's Beijing delegation. Stock has ripped ~35% from April lows of $85.
May 13ON Semiconductor shares jumped 3.9% to $107.24 on May 11 amid post-earnings analyst price target hikes and AI data center optimismPositive▶
ON Semiconductor shares rose 3.9% on May 11, 2026 to $107.24 as analysts continued to lift price targets following the company's Q1 2026 earnings beat. Despite slowing SiC demand and competitive pressures, analysts remain optimistic on AI data center growth. Truist raised its target to $101, Citi to $100, and Roth Capital to $125. The company also recently priced a $1.3 billion convertible senior notes offering in early May. Q1 2026 revenue came in at $1.51B with non-GAAP EPS of $0.64, both beating consensus. The stock has been rising despite GF Value pegging fair value near $59.53.
May 12onsemi reports Q1 26 EPS beat with revenue miss; prices $1.3B convertible notes as AI data center revenue jumps 30% QoQMixed▶
onsemi reported Q1 2026 EPS of $0.64 vs $0.62 est. on May 4, but revenue of $1.513B missed estimates of $1.532B. AI data center business accelerated >30% sequentially; operating income up 10% YoY, outpacing revenue by 2x. Company priced $1.3B convertible notes offering. TD Cowen maintained Buy at $115 PT. Stock has rallied ~44% from March lows; Seeking Alpha downgraded to Hold citing overbought levels and slower fundamental recovery. Shares trading ~$106 with P/E of 73.6 and $42B market cap. Strategic push in EVs/AI continues, including partnership with Geely.
May 11onsemi prices $1.3B convertible notes due 2031 as Citi raises target to $100 after Q1 beatPositive▶
ON Semiconductor priced a $1.3 billion 0% convertible senior notes offering due 2031 on May 7, expected to close May 11. Proceeds will fund convertible hedges, ~$400 million in share repurchases, and debt repayment. Q1 2026 results posted May 4 showed EPS of $0.64 beating $0.62 estimates on revenue of $1.51 billion (up from $1.45B YoY). AI data center business accelerated, growing more than 30% sequentially, while operating income grew 10% YoY. Gross margin rebounded to 38.5%. Citi raised price target to $100 from $68; Truist and Roth Capital also raised targets. Shares trade around $103. Risk: convertible note dilution and execution on debt repayment strategy.
May 8ON Semiconductor Q1 beats; CEO calls inflection point for AI data center; automotive growth returns after 7 quarters.Positive▶
ON Semiconductor narrowly beat Q1 expectations with AI data center emerging as visible growth driver. CEO called Q1 the business's inflection point, with automotive revenue returning to year-over-year growth for first time in 7 quarters at $797 million (+5% YoY). Non-GAAP gross margin hit 38.5%, expanding for third straight quarter. Company set Q2 revenue guidance of $1.535-$1.635 billion and repurchased $346 million of stock. Analyst upgrades include Evercore ISI raising target to $121 from $80. Consensus rating is Buy with average target $89.17. Market price $89-90 range reflects AI demand momentum.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| ONON | $113.28 | -4.20% | +6.5% | 26.4x | 1.98 | $43.9B |
| NVDANVIDIA | $204.70 | -1.31% | -7.2% | 16.1x | 2.20 | $4.96T |
| AVGOBROADCOM | $392.82 | +4.28% | -4.4% | 20.3x | 1.43 | $1.87T |
| MUMICRON | $1,045.42 | +2.42% | +49.3% | 9.1x | 2.17 | $1.18T |
| AMDADVANCED | $512.73 | +1.07% | +23.8% | 39.1x | 2.49 | $835.7B |
| INTCINTEL | $121.36 | +3.68% | +9.3% | 78.4x | 2.23 | $608.6B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price above both MAs — bullish structure.