Why I’ve Begun Accumulating ON Semiconductor - Yahoo Finance

ON Semiconductor (ON) is emerging as a key player in the power semiconductor and silicon carbide (SiC) space, with strong growth in its AI data center segment. Q2 2026 results showed more than doublin... Read original →

ON Semiconductor is reshaping the semiconductor landscape through strategic positioning in power semiconductors and silicon carbide (SiC), driven by demand from AI data centers. Its integration into NVIDIA MGX and AWS server designs has catapulted per-rack content from $15K to $115K by 2030, expanding the market from $12B to $50B. This growth is fueled by strong adoption in China’s EV sector and increasing demand for SiC. The company’s free cash flow surged 300% YoY to $425M, with buybacks absorbing 105% of FCF, signaling strong capital efficiency. However, geopolitical tensions, especially in the U.S.-China tech rivalry, pose supply chain risks and compliance burdens. Competitors like TI and Infineon may respond with accelerated SiC production capacity. Over the next 12–24 months, ON’s technical lead and capital discipline position it to dominate both AI infrastructure and EV power electronics.