ON Semiconductor poised for 24% gain as AI data center business surges beyond auto chip market.

ON Semiconductor is expected to rise 24.23% from $77.20 to $95.90 in the next year, driven by rapid growth in its AI data center segment, which management forecasts will more than double in 2026. Despite being valued like a cyclical auto chipmaker, ON's AI-related silicon carbide revenue is projected to grow nearly 60% next year, supported by key wins with NVIDIA and AWS. The company reported strong Q2 earnings and free cash flow, with positive guidance for Q3. Risks include automotive market exposure and integration challenges, but ON trades at a significant discount to peers Texas Instruments and Analog Devices, making it an attractive buy with a 90% confidence rating.

As of Sep 28, 2026 00:41 WIB, ON Semiconductor trades at $77.20, recovering from its 52-week low of $44.90 but still well below its $133.93 high. Compared to peers, Texas Instruments and Analog Devices trade much higher at $278.03 and $393.60 respectively, closer to their 52-week highs of $332.35 and $445.48. ON's shorter typical hold time of 2 days on Pluang contrasts with the much longer hold times for TXN (76 days) and ADI (64 days), reflecting different investor engagement levels.