onsemi (NASDAQ:ON) Given New $116.00 Price Target at Needham & Company LLC

Key Points

• Needham lowered its onsemi price target to $116 from $130 but maintained a Buy rating, implying substantial upside from the stock’s $80.40 close. However, broader analyst sentiment remains cautious, with a consensus rating of Hold and an average target of $102.
• onsemi exceeded second-quarter expectations, reporting $0.74 in adjusted EPS and $1.60 billion in revenue, with revenue up 9.2% year over year. Its third-quarter guidance calls for adjusted EPS of $0.81–$0.93 and revenue near $1.7 billion.
• AI data-center demand is emerging as a major growth driver, with management expecting data-center revenue to more than double in 2026. The shift may require reallocating capacity away from automotive and industrial customers, creating potential near-term execution risks.

onsemi (NASDAQ:ON - Get Free Report) had its price target decreased by analysts at Needham & Company LLC from $130.00 to $116.00 in a report released on Tuesday,Benzinga reports. The firm currently has a "buy" rating on the semiconductor company's stock. Needham & Company LLC's price objective points to a potential upside of 44.28% from the stock's previous close.

Other equities research analysts have also issued reports about the company. Citigroup increased their price target on onsemi from $100.00 to $120.00 and gave the company a "neutral" rating in a research report on Monday, June 15th. Stifel Nicolaus upped their price objective on shares of onsemi from $90.00 to $107.00 and gave the stock a "hold" rating in a research report on Wednesday, June 24th. Weiss Ratings restated a "sell (d+)" rating on shares of onsemi in a research note on Friday, July 24th. Rosenblatt Securities reiterated a "neutral" rating and set a $85.00 price target on shares of onsemi in a report on Tuesday. Finally, Roth Capital reiterated a "buy" rating on shares of onsemi in a research note on Tuesday, May 5th. Fourteen analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $102.00.

onsemi Price Performance

Shares of NASDAQ ON opened at $80.40 on Tuesday. The stock has a market cap of $31.51 billion, a price-to-earnings ratio of 57.02, a PEG ratio of 0.90 and a beta of 2.03. The company has a debt-to-equity ratio of 0.41, a quick ratio of 3.14 and a current ratio of 4.87. onsemi has a fifty-two week low of $44.56 and a fifty-two week high of $134.92. The firm's 50-day simple moving average is $104.28 and its 200 day simple moving average is $85.07.

onsemi (NASDAQ:ON - Get Free Report) last issued its quarterly earnings data on Monday, August 3rd. The semiconductor company reported $0.74 EPS for the quarter, topping analysts' consensus estimates of $0.72 by $0.02. The firm had revenue of $1.60 billion during the quarter, compared to analyst estimates of $1.59 billion. onsemi had a return on equity of 12.79% and a net margin of 9.46%.The company's revenue for the quarter was up 9.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.53 EPS. onsemi has set its Q3 2026 guidance at 0.810-0.930 EPS. As a group, research analysts anticipate that onsemi will post 3.09 earnings per share for the current fiscal year.

Hedge Funds Weigh In On onsemi

Institutional investors and hedge funds have recently bought and sold shares of the company. Norges Bank purchased a new stake in onsemi during the fourth quarter valued at about $330,885,000. Two Sigma Investments LP increased its stake in shares of onsemi by 636.1% in the third quarter. Two Sigma Investments LP now owns 3,749,751 shares of the semiconductor company's stock worth $184,900,000 after purchasing an additional 3,240,375 shares in the last quarter. Rafferty Asset Management LLC raised its position in shares of onsemi by 55.0% in the second quarter. Rafferty Asset Management LLC now owns 5,837,502 shares of the semiconductor company's stock valued at $305,943,000 after purchasing an additional 2,072,125 shares during the period. Marshall Wace LLP raised its position in shares of onsemi by 23,784.8% in the fourth quarter. Marshall Wace LLP now owns 1,716,122 shares of the semiconductor company's stock valued at $92,928,000 after purchasing an additional 1,708,937 shares during the period. Finally, Alliancebernstein L.P. lifted its stake in shares of onsemi by 312.8% during the 2nd quarter. Alliancebernstein L.P. now owns 2,011,077 shares of the semiconductor company's stock valued at $105,401,000 after buying an additional 1,523,866 shares in the last quarter. 97.70% of the stock is owned by institutional investors.

Trending Headlines about onsemi

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. onsemi reported adjusted EPS of $0.74 versus the $0.72 consensus estimate and revenue of approximately $1.604 billion versus expectations of $1.59 billion. Revenue increased 9% year over year, while adjusted gross margin reached 39.3%. onsemi Reports Second Quarter 2026 Results
• Positive Sentiment: AI data-center demand is becoming a meaningful growth driver. Management said it is prioritizing AI infrastructure customers and expects data-center revenue to more than double in 2026. The company highlighted rising demand for high-voltage power solutions and other products used in AI applications. ON Semiconductor Shifts Capacity to AI Data Centers
• Positive Sentiment: Cash generation and shareholder returns improved sharply. Operating cash flow rose 150% year over year, free cash flow reached $425.4 million and onsemi repurchased $332 million of stock during the quarter. Stocks to Watch: ON Semiconductor
• Neutral Sentiment: Third-quarter guidance was broadly encouraging but not a major upside surprise. onsemi projected adjusted EPS of $0.81–$0.93 and revenue near $1.7 billion, roughly in line with analyst expectations. The midpoint implies continued sequential growth, but investors may have wanted a larger forecast increase given the AI enthusiasm.
• Negative Sentiment: AI growth requires reallocating capacity away from automotive and industrial customers. Automotive remains a major part of onsemi’s business, so prioritizing data centers could raise concerns about near-term automotive sales, customer relationships and the pace of the broader cyclical recovery.
• Negative Sentiment: Analysts remain cautious on the risk-reward profile. Baird raised its price target to $108 from $100 but maintained a Hold rating, citing margin tailwinds that are partly offset by competitive pressures. With the stock trading well above its 200-day average and at a relatively high earnings multiple, the results may have been largely anticipated. ON Semi Price Target Raised to $108

onsemi Company Profile

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions.

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