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ON Semiconductor: Poised to Profit from AI's Future
21 Jun
Summary
- AI inference spending will soon exceed infrastructure costs.
- ON Semiconductor's data center revenue grew 30% in Q1.
- The company's chips power EVs, industrial, and AI inference.
Artificial intelligence spending is rapidly expanding, with future projections indicating continued growth for years to come. A notable shift is anticipated as AI inference spending is set to outpace data center infrastructure investments within a few years.
This evolving landscape presents a significant opportunity for power semiconductor company ON Semiconductor (NASDAQ: ON). While the company is already recognized for its power and sensing chips in the electric vehicle and industrial sectors, its data center revenue has experienced a substantial 30% surge in the first quarter of 2026.
This burgeoning data center segment, which represented $250 million in sales in the first quarter and is equivalent to $6 billion in 2025 sales, is driven by ON Semiconductor's ability to supply power technology for next-generation data centers. It also caters to diverse environments, including hyperscale data centers, businesses, and edge inference applications.
