onsemi shares rose 3.6% after earnings, as third-quarter revenue, gross margin and EPS all came in above the midpoint of company guidance. Investors also heard that AI data center revenue is scaling quickly, with management expecting it to double in 2027.
- Q3 revenue was $1.72 billion, non-GAAP gross margin approximately 41.2%, and non-GAAP diluted EPS $0.90; all were above the midpoint of guidance.
- AI data center revenue grew 39% sequentially to $180 million. onsemi expects approximately $620 million in 2026 revenue, up 140% year over year, and still expects to double that in 2027.
- Management said industrial demand improved, particularly in power infrastructure and energy, and that the company allocated supply toward AI data center and industrial markets.
- Automotive deliveries are supporting end demand, but not inventory replenishment backlog; management expects 2027 automotive growth to be in line with its long-term target.
- The company remains supply-limited in some technology segments. It also announced the acquisition of Ferric to expand into integrated voltage regulators for AI processors.
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