New York, Jan 22, 2026, 05:33 EST — Premarket
- ON Semiconductor shares gained 1.5% in premarket trading, following a 5.1% rise in the previous session
- BofA and B. Riley raised price targets but maintained a neutral rating
- Attention turns to chip earnings as onsemi prepares to report on Feb. 9
ON Semiconductor (ON.O) shares gained 1.5%, hitting $64.10 in premarket action Thursday, following a 5.1% jump the day before. Bank of America’s Vivek Arya bumped his price target up to $65 from $60, while Craig Ellis at B. Riley raised his to $58 from $54, according to StockAnalysis.com.
The sharp shift refocuses attention on a semiconductor segment that hasn’t followed a clear-cut “AI trade.” onsemi’s sales lean heavily toward autos and industrial sectors, both of which have seen uneven demand.
This matters now as investors wrestle with whether the drop in orders is truly easing or merely taking a breather. Even a slight shift in factory output or car production can quickly swing margins and forecasts for power-chip manufacturers.
Bank of America raised price targets on most of its diversified analog-chip coverage, anticipating quarterly results to beat earlier concerns. The firm cited stronger pricing and growth driven by “strategic AI” demand, according to a note reported by TheFly. TipRanks
B. Riley highlighted early signs of stability, noting that global manufacturing PMIs—purchasing managers’ indexes tracking factory output—hover around 50, a mark linked to flat growth. The firm added that consensus estimates might be a bit cautious if we see a rise in auto and industrial orders.
The company’s recent performance has been a mixed bag. In its November earnings report, onsemi topped third-quarter revenue and profit estimates, fueled by chips for AI data centers. Yet, demand from automakers remained cautious around silicon-carbide parts—a key high-voltage tech for electric drivetrains. It projected fourth-quarter revenue between $1.48 billion and $1.58 billion, with adjusted earnings of 57 to 67 cents per share.
Buybacks are also in play. onsemi’s board greenlit a fresh $6 billion share repurchase plan spanning three years, kicking off Jan. 1, right after their earlier $3 billion program wrapped up. CFO Thad Trent called the move a “demonstration of our commitment to disciplined capital management,” while CEO Hassane El-Khoury emphasized the company’s ongoing focus on “investing in differentiated technologies” in power and sensing. onsemi
The chip sector’s outlook is complicated. Memory-chip prices are climbing sharply, fueled by AI data-center expansions. Reuters says this spike is beginning to pinch consumer electronics firms, with rising component costs pushing up prices for PCs and smartphones.
Intel’s quarterly report, coming after Thursday’s close, is on traders’ radar, frequently influencing the broader semiconductor sector during earnings season. According to Reuters, Intel will release its fourth-quarter results after the bell.
But onsemi remains more linked to autos and factories than to the AI hardware buzz. If industrial demand stays sluggish or silicon-carbide orders fail to bounce back, the upcoming guidance update might derail the recent rally.
Thursday’s key test: will the stock stay put in the mid-$60s when regular trading kicks off, or will it slip? The other angle — will the next wave of broker notes push prices higher or stall now?
onsemi is set to release its earnings on Feb. 9. Investors will watch closely for updates on automotive and industrial order trends, shifts in gross margin, and how quickly the company plans to buy back shares.
