ON Semiconductor Corp. (ON): Cyclical recovery continues, with AI datacenter power supporting growth

Research evidence excerpt

ON Semiconductor Corp. (ON): Cyclical recovery continues, with AI datacenter power supporting growth

Equity Research

3 August 2026 | 8:53PM EDT

ON Semiconductor Corp. (ON): Cyclical recovery continues, with AI

datacenter power supporting growth

Key stock takeaways: We expect the stock to trade higher following 2Q results and James Schneider, Ph.D.

+1(212)357-2929 |

guidance that came in just above the Street, set against a backdrop of relatively jim.schneider@gs.com

Goldman Sachs & Co. LLC

muted expectations and investor positioning. Management cited continued

Khalil Fenina

improvement in demand across its customer base, with increasing book/bill levels, +1(212)357-6392 |

customer expedite actions, and lead time extensions. onsemi also continues to khalil.fenina@gs.comGoldman Sachs & Co. LLC

benefit from idiosyncratic growth drivers, including datacenter power and EV Anmol Makkar

applications. Although the company is not yet seeing signs of broad-based customer +1(212)357-1366anmol.makkar@gs.com|

restocking, incremental datapoints from onsemi and peers suggest continued upside Goldman Sachs & Co. LLC

Youpotential to estimates across the analog group in the coming quarters. We maintain a Luya +1(212)902-5297 | luya.you@gs.com

constructive stance on the analog sector, but are Neutral on a relative basis given the Goldman Sachs & Co. LLC

company’s outsized automotive exposure and residual pricing headwinds in

segments of the company’s product portfolio.

n Automotive trends: The company reported a modest decline in automotive

revenue (down 2% q/q) as positive trends in China EVs were offset by typical

seasonality in Europe. onsemi is seeing strong content growth (noting that China

automotive revenue increased 13% in 1H26 y/y despite a 4% decline in vehicle