Onsemi forecasts upbeat revenue on surging AI data center chip demand

Chipmaker Onsemi on Monday forecast third-quarter revenue above Wall Street expectations, betting on surging demand for power management chips used in AI data centers.

Onsemi's results come as it looks to its biggest deal yet, a $7 ‌billion all-stock ⁠acquisition ⁠of Synaptics announced in June, to tap into growing demand from AI devices and robotics.

Onsemi ​forecast its third-quarter revenue in the range of $1.65 billion to $1.75 billion, the midpoint of which ​is above analysts' average estimate of $1.67 ⁠billion, according ‌to LSEG data.


"AI data center remains our fastest-growing business and we now expect ⁠revenue to more than double in 2026, demonstrating the strength of our intelligent power portfolio and growing customer adoption across the power tree," CEO Hassane El-Khoury said.

The company posted second-quarter revenue of $1.6 billion, in line with expectations of $1.59 billion.

Adjusted earnings per ‌share came in at $0.74, above estimates of $0.71.

It expects third-quarter adjusted EPS in ​the range ​of $0.81 to $0.93, ⁠the midpoint of which is above estimates of $0.83.

Shares of the company were down 1.5% after the bell.

​Onsemi is also pressing ahead with its "Fab Right" strategy to cut costs. In July, it sold two of its manufacturing facilities as part of this strategy.