Demand for AI data centers remains strong! ON Semiconductor (ON.US) is favored by multiple Wall Street institutions, and the trend of improving gross margins is expected to continue until the end of the year.

According to the Zhitong Finance APP, after Onsemi (ON.US) announced its second-quarter performance and guidance, Wall Street analysts generally expressed optimism, leading to a pre-market surge of about 7% in the company's stock price on Tuesday. However, after the market opened, the stock erased its pre-market gains and, as of the time of this report, is up 0.58%, trading at $80.92. Several institutions believe that the artificial intelligence (AI) data center business is becoming the company's most important growth engine, while the industrial and automotive sectors are also gradually improving. Coupled with rising orders, capacity utilization, and gross margins, the company's fundamentals are expected to further improve.