ON Semiconductor Corporation ON Semiconductor (ON) is at a pivotal turning point, according to the latest analyst notes released Tuesday. Following a robust first-quarter earnings beat, Needham & Company and Rosenblatt Securities have both raised their price forecasts, though they remain divided on the stock's ultimate valuation.

Rosenblatt: "L-Shaped" Recovery Finally Turns Up

Rosenblatt Securities raised its price forecast on ON to $85 from $60, while keeping a Neutral rating. Analysts at the firm noted that the company's business is finally emerging from a multi-year "L-shaped" recovery. They attributed this shift to a "combination of cyclical upturn and secular new designs ramping into production." However, they argued that the current report, while positive, does not yet provide enough upside to support a valuation exceeding 31 times next-twelve-months earnings.

Needham: AI Data Center Revenue to Double

Needham reiterated a Buy rating and surged its price forecast to $110 from $72. Needham's conviction rests on a massive acceleration in the "Other" segment. Management now expects AI data center revenue to double year-over-year to $500 million in calendar year 2026. The company is engaged with all major power supply vendors serving every major AI hyperscaler, the report noted. Needham analysts highlighted an "AI halo effect" in the energy infrastructure market, aiding the company's energy storage and micro-grid business. "Near-term demand dynamics are turning positive and margin expansion is following," the report stated.

Automotive Strength and China Market Share

The automotive segment continues to provide a solid floor for the bullish thesis. ON reported that its silicon carbide (SiC) share of new EV models in China reached 55% during the quarter. Additionally, the company began shipping its Treo-based Ethernet solutions for a leading North American customer's zonal architecture—a platform integrating over 30 Treo devices, Needham noted.

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $90.50. Recent analyst moves include:

• Morgan Stanley: Equal-Weight (Raises Target to $87.00) (May 5)
• TD Cowen: Buy (Raises Target to $115.00) (May 5)
• Truist Securities: Hold (Raises Target to $101.00) (May 5)

ON Semiconductor Price Action

ON Price Action: ON Semiconductor shares were down 1.22% at $100.80 at the time of publication on Tuesday. The stock is approaching its 52-week high of $105.00, according to market data.