Onsemi’s AI Data Center Sales Reportedly Grew 175%. Is That the Chip Stock’s New Story?

What happened

Onsemi (NASDAQ:ON) reported its fourth straight earnings beat after the market close on November 2, 2026: AI data center revenue reached $180 million, up 175% year over year; third-quarter revenue came in at $1.7223 billion, ahead of the $1.7046 billion estimate and up 11.1% year over year; non-GAAP EPS of $0.90 beat the $0.8778 estimate; GAAP gross margin expanded to 41.4% from 37.9% a year earlier; and free cash flow rose 153% to $488.6 million. Management now expects about $620 million from AI data centers in 2026 and expects AI data center revenue to double over 2026 in 2027, and it raised its 2030 AI data center target to greater than $3 billion; onsemi has started volume shipments into 'multiple marquee platforms, including Google.' Shares traded at $73 premarket, up 4.12%, after closing at $70.63 on November 2, 2026. 24/7 Wall St. set a price target of $87.90 (buy rating, 90% confidence) with base-case targets of $89.92 (2027), $98.68 (2028), $119.04 (2029) and $128.95 (2030), valuing onsemi at about 20x forward EPS, below Microchip (21x) and Texas Instruments (26x). Bearish factors: AI data centers made up only about 10.45% of quarterly revenue; automotive revenue of $777 million fell 1% and management expects a high single-digit decline in the fourth quarter (management says the dip shows supply being shifted to AI and industrial customers and expects automotive growth to return to its long-term target in 2027); the $5.7 billion cash price for Synaptics adds integration risk; Barclays rates the stock equal-weight with a $75 target, citing exposure to China and automotive. The article was published November 5, 2026.

Impact and signal

Affected components and suppliers

Source and time

Source: Yahoo Finance — TXN · 11/5/2026 · View original source