ON Semiconductor rises on upbeat forecast, Ferric deal
ON•ON Semiconductor expects AI data center revenue to more than double year over year in 2026 and double again in 2027. It forecast fourth-quarter revenue of $1.72 billion to $1.82 billion and adjusted EPS of 95 cents to $1.07, and agreed to acquire Ferric for $600 million in cash plus up to $175 million tied to revenue milestones.
1. Forecast and acquisition
ON Semiconductor forecast fourth-quarter revenue of $1.72 billion to $1.82 billion and adjusted earnings per share of 95 cents to $1.07, both largely above estimates. The company expects AI data center revenue to more than double year over year in 2026 and double again in 2027.
2. Ferric deal
The chipmaker announced it will acquire Ferric for $600 million in cash, plus up to $175 million if certain revenue milestones are met. Ferric designs power converters and voltage regulators for semiconductors, which help improve processor efficiency.
