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27-year-old chip stock sees price target slashed despite sales, profit surge
['Tyler Bundy', 'Tue', 'August', 'At Pm Gmt', 'Min Read']
Yahoo Finance
The chipmaker reported second-quarter results on Aug. 3 that showed improving revenue, profitability and free cash flow.
Onsemi (ON) also said its AI data-center business remains its fastest-growing operation, broadening a growth story long centered on autos and industrial chips.
Onsemi earnings strengthen the AI growth caseOnsemi reported second-quarter revenue of $1.604 billion, up 9% from a year earlier.
Related: Duolingo earnings put a Wall Street warning to the testManagement now expects AI data-center revenue to more than double in 2026, while highlighting expanded participation in Nvidia's MGX ecosystem and additional AI data-center platform wins.
The $1.70 billion revenue midpoint and $0.87 EPS midpoint both sit above the consensus figures cited in BofA's note.