The Zhitong Finance App learned that the brokerage firm StoneX covered Onsemi Semiconductors (ON.US) for the first time on Thursday and gave it a “buy” rating. The target price was 110 US dollars, which is nearly 50% higher than the latest closing price. Analyst Gary Mobley believes that Onsemi is one of the best ways to seize the “strong momentum of the ever-expanding chip cycle.” StoneX said that Ansemi's growth prospects are not limited to the AI data center business; its automotive business provides another path for expansion.
Look at multiple logic: In addition to AI, the automotive business provides new volume
StoneX pointed out that rising semiconductor content in automobiles is a key driving force for Ansemi's automotive business. The agency also emphasized that Ansemi also has a presence in the field of AI data center power infrastructure, and its technology can help manage and convert electricity.
At last month's Investor Day event, Onsemi unveiled its ambitious growth roadmap. The company expects AI data center revenue to more than double in 2026 and 2027. By 2030, the business will have annual revenue of over $2.5 billion.
The company also proposed a target compound annual revenue growth rate of 12% to 14% from 2026 to 2030. This goal is supported by opportunities in the automotive, industrial, and AI data center markets.
Ansemi's automotive strategy focuses on increasing the content of bicycle chips. This strategy is expected to benefit as automakers adopt electrification, advanced driver assistance systems, and software-defined architectures.
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Ansemi is also expanding its energy infrastructure layout. On Wednesday, the company announced that renewable energy technology company Sunshine Power has adopted its silicon carbide hybrid power module for the PowerTitan 3.0 energy storage platform.
At the beginning of this month, Ansemi revised the agreement to acquire Synaptics (SYNA.US). The company replaced the original full stock transaction of about 7 billion US dollars with a cash transaction of 5.7 billion US dollars. The acquisition aims to expand Ansemi's capabilities in connected computing.
Ansemi's revenue for the second fiscal quarter increased 9% year over year to US$1.6 billion. CEO Hassane El-Khoury said AI data centers are still the company's fastest-growing business, thanks to growing demand for its high-voltage power solutions.
For the third quarter, Ansemi gave revenue guidance of $1.65 billion to $1.75 billion.
On Stocktwits, retail investor sentiment about Ansemi shares is still “extremely pessimistic.” However, a month ago, retail sentiment was still “bullish.”
So far this year, Ansemi's stock price has risen by more than 29%. In contrast, the iShares Semiconductor ETF, which includes this stock, rose more than 65% over the same period.