The analyst added to their position in ON, expecting structural growth driven by EVs, AI infrastructure, and next-gen power semiconductors, with multiple growth engines and margin improvements ahead.
ON posted first YoY growth after automotive revenue declines, holds significant silicon carbide share in new EV models, AI data center revenue doubled, management guides for further AI revenue growth, manufacturing consolidation to improve margins, GaN design funnel to add revenue, buyback authorization and rising free cash flow indicate structural re-rating beyond cyclical recovery.
$ON - added today Power Semiconductor Inflection Play After seven consecutive quarters of automotive revenue decline, $ON just posted its first YoY growth — and that’s only the beginning of the story. The company holds ~55% silicon carbide share of new EV models at the 2026 Beijing Auto Show, AI data center revenue more than doubled YoY in Q1 (up 30%+ sequentially), and management is guiding for AI revenue to double again in full-year 2026. The “FabRight” manufacturing consolidation is set to deliver margin benefits in H2 2026, while a $1.5B+ GaN design funnel begins converting to revenue in 2027 — adding a third growth engine on top of SiC and AI power. With a $6B buyback authorization, rising free cash flow, and operating leverage kicking in, $ON isn’t just a cyclical recovery — it’s a structural re-rating story at the intersection of EVs, AI infrastructure, and next-gen power semiconductors. The cyclical trough is behind them. The compounding is ahead. Not financial advice. DYOR.
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | -4.5% | -3.3% |
| 1 week | -1.0% | +1.2% |
| 1 month | -25.5% | -25.5% |
| 3 months | — | — |
| 6 months | — | — |