AI Chip Demand Boosts onsemi Q3 Revenue
According to onsemi’s latest earnings outlook, the semiconductor company expects third-quarter revenue to exceed Wall Street estimates, driven by strong demand for power management chips used in artificial intelligence (AI) data centers.
The company released its financial forecast as it prepares to complete its largest acquisition to date. In June, onsemi announced an all-stock deal worth approximately $7 billion to acquire Synaptics, aiming to capitalize on rising demand for semiconductor solutions in AI devices and robotics applications.
onsemi expects third-quarter revenue to range between $1.65 billion and $1.75 billion, with the midpoint above analysts’ average estimate of $1.67 billion, according to data from the London Stock Exchange Group (LSEG). CEO Hassane El-Khoury said AI data centers remain the company’s fastest-growing business segment and that revenue from this area is now expected to more than double by 2026. He added that the growth reflects the strength of onsemi’s intelligent power portfolio and increasing customer adoption of its solutions across the entire power system.
For the second quarter, onsemi reported revenue of $1.6 billion, slightly above the previous market expectation of $1.59 billion. Adjusted earnings per share came in at $0.74, beating analysts’ forecast of $0.71. The company expects third-quarter adjusted earnings per share to be between $0.81 and $0.93, with the midpoint exceeding the prior estimate of $0.83.
Meanwhile, onsemi continues to advance its “Fab Right” strategy, which focuses on improving manufacturing efficiency and reducing costs. As part of this initiative, the company sold two manufacturing facilities in July to optimize its global production footprint.
With AI infrastructure investment accelerating worldwide, onsemi is positioning its power semiconductor portfolio—including intelligent power management solutions—as a key technology enabler for next-generation data centers, automotive systems, and industrial applications.
