Q1 Earnings Outperformers: onsemi (NASDAQ:ON) And The Rest Of The Analog Semiconductors Stocks - The Globe and Mail

As the Q1 earnings season concludes, the analog semiconductor industry has shown strong performance, with key players such as onsemi, Texas Instruments, and Monolithic Power Systems exceeding analyst ... Read original →

The analog sector’s Q1 outperformance reflects structural demand from AI infrastructure and automotive electronics, not cyclical rebound. onsemi’s 30% sequential surge in AI data center revenue stems from liquid-cooled GB200 servers demanding high-efficiency power delivery—sparking a cascade effect: accelerated GaN/SiC adoption in mid-voltage modules and forcing Taiwan, China foundries like UMC to expand BCD process capacity. Geopolitically, the U.S. CHIPS Act Phase II excludes pure-play analog chips, compelling firms to shift backend packaging to Mexico or Vietnam to sidestep tariffs. Over the next 12–24 months, divergence is inevitable: TI-style vertically integrated players with automotive-grade certifications will command premium valuations, while consumer-dependent analog suppliers face attrition. In an era of tech decoupling, analog’s ‘slow innovation’ model has become a strategic hedge.