Semiconductor Stocks Surge Amid AI Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 15 2026
0mins
Source: Fool
ON Semiconductor Corp's stock rose by 5.01% as it crossed above its 5-day SMA, reflecting strong investor interest in the semiconductor sector. Amid a broader market rally, semiconductor stocks have been particularly favored, with companies like Intel and Micron seeing significant gains due to rising demand for AI and data center technologies. This trend indicates a robust recovery in the semiconductor market, driven by increased investments and positive market sentiment.
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Analyst Views on ON
Wall Street analysts forecast ON stock price to fall
19 Analyst Rating
9 Buy
10 Hold
0 Sell
Moderate Buy
Current: 123.770
Low
50.00
Averages
61.25
High
80.00
Current: 123.770
Low
50.00
Averages
61.25
High
80.00
About ON
ON Semiconductor Corporation is engaged in providing intelligent power and intelligent sensing solutions. The Company’s intelligent power technologies enable the electrification of drivetrain in the automotive industry to allow for lighter and longer-range electric vehicles. Its segments include Power Solutions Group (PSG), the Analog and Mixed-Signal Group (AMG) and the Intelligent Sensing Group (ISG). PSG segment provides a portfolio of discrete, module, and integrated semiconductor devices designed to enable conversion across artificial intelligence (AI) data centers, energy infrastructure, automotive and industrial. AMG segment designs and develops a range of analog and mixed-signal solutions including power‑management, sensor‑interface, connectivity, and products that serve automotive, industrial automation, AI data center, computing, and mobile end markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Growth Potential: The company's silicon carbide chips account for 55% of new EV models, with expectations for AI data center revenue to double year-over-year by 2026, indicating robust competitiveness in rapidly growing sectors.
- Revenue Growth Drivers: Projected annual revenue growth of 9.4% over the next five years, with earnings per share expected to grow at a rate of 27%, will enhance profit flow under high fixed costs, improving overall profitability.
- Capacity Utilization Improvement: Manufacturing utilization rose to 77% in Q1, with the CFO anticipating a 25%-30% revenue increase in the coming years, which will further boost margins and enhance the company's long-term investment appeal.
See More
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- Oil Price Volatility: WTI crude oil prices fell to a 2.5-week low as US-Iran negotiations aimed at reopening the Strait of Hormuz progressed, although military actions by US Central Command pressured market sentiment, leading to declines in energy stocks.
- Economic Data Impact: The Chicago Fed National Activity Index rose to a 13-month high of 0.14, surpassing expectations, while a slight decline in the consumer confidence index reflects the complexities of economic recovery, potentially influencing future market trends.
- Earnings Reports: As of Tuesday, 83% of the 475 S&P 500 companies reported earnings above expectations, with Q1 earnings projected to grow by 12% year-on-year, although excluding the tech sector, the increase is only 3%, highlighting disparities across industries.
See More
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- Semiconductor Sector Rally: The VanEck Semiconductor ETF (SMH) rose over 3%, reaching a new 52-week high, with On Semiconductor and Western Digital both gaining nearly 9%, showcasing investor optimism regarding the recovery of the chip industry.
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See More
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