Key Takeaways
- Onsemi predicts its AI data-center business will more than double by 2026.
- Semiconductor demand is recovering, with AI applications driving growth.
- Automotive and industrial markets are stabilizing but not yet showing significant improvement.
Onsemi has announced that it expects its revenue from AI data-center applications to more than double by 2026. This forecast comes as the company sees a broadening recovery in semiconductor demand, with AI being at the forefront of this growth.
According to Onsemi's second-quarter results, the company is experiencing significant expansion in its AI data-center business, which has become one of its fastest-growing segments. The outlook for 2026 suggests that ongoing improvements in utilization and product mix could further enhance margins.
While automotive and industrial markets are showing signs of stabilization, they have not yet seen a major boost in demand. Onsemi's guidance for the third quarter does not indicate any significant upside surprises, suggesting that a broader inventory-replenishment cycle has not yet begun.
