Onsemi just delivered a quarter that most chipmakers would kill for, and Bank of America responded by cutting its price target. Welcome to the semiconductor sector, where exceeding expectations and getting downgraded can happen in the same breath.
BofA Securities analyst Vivek Arya trimmed his price target on onsemi (NASDAQ: ON) to $120 from $138, even as the company posted Q2 2026 revenue of $1.604 billion, a 9% jump year-over-year, and non-GAAP diluted earnings per share of $0.74, beating the consensus estimate of $0.71. He kept the Buy rating intact.
The numbers tell a different story than the target cut
Onsemi’s quarter was genuinely impressive by almost any metric. Free cash flow quadrupled year-over-year to $425.4 million.
Revenue from AI data center applications provided the standout performance. The company’s “other” segment, which captures this AI-adjacent business, recorded 34% sequential growth, pushing AI and data center revenue to roughly $400 million.
