On Semiconductor Corp. (ON) delivered its second-quarter report after Monday's closing bell, and the numbers came in ahead of what Wall Street was looking for. The company also signaled that its AI data center business is about to get a whole lot bigger.

Here's what stood out from the report.

On Semi's Q2 Numbers

The chipmaker posted earnings of 74 cents per share, beating the Street's estimate of 71 cents. Revenue hit $1.6 billion, edging past the consensus forecast of $1.59 billion and climbing from $1.47 billion in the same quarter last year.

Gross margin came in at 39.3% on a non-GAAP basis, with operating margin at 20.8%.

CEO Hassane El-Khoury credited the performance to "strengthening demand, particularly across AI-driven applications, and growing customer adoption of our differentiated solutions, including Treo and our high voltage power solutions."

He also highlighted the AI data center segment as the company's fastest-growing business, saying, "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."

Investors seemed pleased with the update. On Semi shares were up 5.35% to $84.70 in extended trading on Monday.