Wall Street is eagerly awaiting the dual-wheel drive of "AI power + silicon carbide" catalysis. Many investment banks have raised the target price of ON Semiconductor Corporation (ON.US).

Citigroup has raised its price target for ON Semiconductor Corporation (ON.US) from $100 to $120 while maintaining a "Neutral" rating on the stock. They have also included the stock in their "Upward Catalyst Watchlist" ahead of the company's analyst day in September. This move reflects the market's increasingly optimistic view on ON Semiconductor's positioning in the data center power infrastructure sector and its long-term growth opportunities in advanced power technologies. Citigroup stated that the higher valuation reflects the market's growing confidence in the company's ability to benefit from the increasing demand for data center power solutions. The firm also raised its earnings per share expectations for ON Semiconductor for calendar years 2026, 2027, and 2028. They now expect earnings per share of $3.07 in 2026, $4.64 in 2027, and $6.00 in 2028, representing increases of 1%, 12%, and 9% compared to previous forecasts. This revision is primarily driven by pricing increases and expectations of a more sustained recovery in the analog semiconductor market. Ahead of ON Semiconductor Corporation's analyst day in September, Citigroup believes that this event could provide investors with a clearer understanding of the company's long-term growth strategy and emerging revenue opportunities. Management is expected to provide detailed information on the expanding data center business and focus on the progress of silicon carbide (SiC) and gallium nitride (GaN) technologies. Citigroup anticipates that ON Semiconductor will highlight the potential of its power semiconductor product portfolio and provide updates on the latest developments in the Treo platform aimed at supporting margin expansion. The bank also expects growth in the company's silicon carbide business driven by the transition to 800V DC architecture in the next generation of electric vehicles. Analysts believe that these trends may help shape a more ambitious long-term financial model and strengthen the company's growth prospects in the automotive and industrial markets. Analyst Day: Three Key Focus Areas Wall Street analysts believe that the management team at the upcoming event needs to clarify how they will translate technology into tangible results, focusing on the following three key areas: Data Center AI Power Infrastructure This is currently the most exciting growth driver on Wall Street. The demand for high-power, high-efficiency power management in AI servers (particularly with next-generation chip clusters like NVIDIA Corporation) is growing exponentially. The market will focus on ON Semiconductor's actual business share in the data center power market, new orders obtained, and the latest commercial progress in vertical gallium nitride (Vertical GaN) technology. The Next Wave of Silicon Carbide (SiC) and the "800V Transition" While the growth of electric vehicles (EVs) has slowed down, the industry is undergoing a significant technological transition to 800V DC fast charging architecture. How the 800V transition stimulates secondary demand for ON Semiconductor's silicon carbide (SiC) chips in the hands of car manufacturers, as well as the latest status of long-term agreements (LTAs) in the supply chain, will be key focus areas. Treo Platform and the Adjustment of the Long-Term Financial Model The newly launched Treo analog semiconductor platform by ON Semiconductor. Wall Street expects the management team to illustrate how this platform will help the company improve gross margins. Analysts anticipate that ON Semiconductor may release a more ambitious, higher-than-market-expected long-term financial target. Major Banks' Views In addition to Citigroup, Bank of America has also raised the company's price target from $115 to $138 and maintained a "Buy" rating. Analyst Vivek Arya emphasizes the company's strong free cash flow and low-leverage balance sheet, providing ample space for non-organic stock buybacks. Wells Fargo & Company has significantly raised its price target to $140. The bank believes that ON Semiconductor's industry recovery trajectory is very robust, and barriers in the automotive and industrial power sectors remain difficult to overcome. Nomura Securities has maintained an "Outperform" rating for ON Semiconductor Corporation with a price target of $130, emphasizing its long-standing leadership in advanced power semiconductors.