Onsemi projects AI data-center revenue to more than double by 2026, signaling a strong demand recovery. However, the lack of a major upside surprise in Q3 guidance suggests the inventory replenishment cycle has not yet fully begun.
onsemi's board authorized a new $6 billion share repurchase program effective January 2026, following the expiration of its current $3 billion plan. Under the prior authorization, the company has repurchased $2.1 billion of stock, spending roughly 100% of its free cash flow on buybacks in 2025. Bearish: This signals management's view that returning capital to shareholders is a higher priority than significant reinvestment into capacity or R&D, potentially indicating a mature growth outlook and less future supply expansion.
onsemi will be added to the Nasdaq 100 Index on June 20th, following two consecutive years of record results and a tripling of its market cap over the last 30 months. The company reported 2022 revenue of $8.3 billion, with earnings growth significantly outpacing revenue.
Index inclusion signals strong financial performance and may increase institutional investor interest, but does not directly alter the supply-demand fundamentals for its power semiconductors.
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