ON Semiconductor Corporation (NASDAQ:ON) stock rose more than 2% in Thursday’s premarket session as risk appetite improved and investors digested the chipmaker’s new long-term growth targets.

Nasdaq futures gained 1.11%, while S&P 500 futures rose 0.85%. The broader strength in technology stocks is helping ON Semiconductor. However, the company also gave investors a fresh growth story Wednesday.

ON laid out an ambitious 2030 plan that targets roughly $11 billion in revenue. The semiconductor company is targeting a 12% to 14% revenue compound annual growth rate through 2030, up from its previous 10% to 12% model.

Management said AI data centers are the main driver behind the higher outlook.

AI Emerges As New Growth Engine

ON expects its AI data center revenue to more than double in 2026 and double again in 2027.

Longer term, the company expects to grow at least 10 percentage points faster than the broader AI data center market. Based on a 40% market growth assumption, ON said its AI data center business could grow at least 50% annually.

That could lift revenue from about $500 million in 2026 to more than $2.5 billion by 2030.

The opportunity comes from the rising power requirements of AI infrastructure. ON expects its semiconductor content per AI rack to jump from about $15,000 to more than $115,000 as data centers adopt high-voltage power architectures.

The company also announced a major Vcore socket win. Revenue from that business is expected to begin by the end of 2026.

Automotive And Industrial Growth

ON expects automotive revenue to grow about 9% annually through 2030, despite its forecast for broadly flat industry production. The company sees opportunities in electrification, autonomous driving and software-defined vehicles.

Industrial revenue is expected to grow about 10% annually.

Meanwhile, physical AI, excluding automotive, could represent a $6 billion addressable market for ON by 2030. The company sees an opportunity for up to about $900 of ON content per humanoid robot.

Margins And Cash Flow

ON is targeting a 53% gross margin and a 38% operating margin under its 2030 model. Capital expenditures are expected to run at about 5% of revenue.

CFO Thad Trent said recent price increases should support margins over the next several quarters as the company works to offset higher input costs.

ON has invested $8.7 billion over the past five years. That includes $3.6 billion in research and development and $4.3 billion in capital expenditures. Management said those investments position the company to capture growth across AI, automotive and industrial markets.

Separately, ON unveiled its Embedded Power Platform, which integrates multiple power technologies into a single silicon-based architecture. The company said the platform can deliver three to five times higher power density for applications including AI infrastructure and electric vehicles, with sampling expected to begin in 2026.

Technical Analysis

Despite Thursday’s bounce and the stronger long-term outlook, ON Semiconductor remains in a technical repair phase.

The stock is 6.8% below its 20-day simple moving average of $72.87. It is also 14.3% below its 200-day SMA of $79.21.

In addition, the 20-day SMA remains below the 50-day average. That signals continued weakness in the near-term trend.

However, momentum is improving. The MACD is above its signal line, while the histogram is positive. That suggests selling pressure is easing.

The stock also remains well below its 52-week high of $134.92. Therefore, upcoming resistance levels could determine whether the rebound gains momentum or fades.

Critical Levels: Resistance sits near $74, while support is around $55. The 52-week low is $44.56.

Analyst Outlook

The stock carries a Buy consensus rating with an average price forecast of $109.16.

Cantor Fitzgerald maintained a Neutral rating Thursday and lowered its price forecast to $90. Needham maintained a Buy rating and a $116 price forecast. Earlier this month, Wells Fargo maintained an Overweight rating while lowering its price forecast to $95.

Top ETF Exposure

ON Semiconductor has a 6.64% weighting in the First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN). It also has exposure through the Innovator Gradient Tactical Rotation Strategy ETF (NYSE:IGTR) at 1.60% and the Harbor Mid Cap Value ETF (NYSE:EPMV) at 2.36%.

Fund inflows and outflows can therefore create additional buying or selling pressure on the stock.

Price Action

ON Stock Price Activity: ON Semiconductor shares were up 2.33% at $68.15 during Thursday’s premarket trading, according to market data.