Stifel Reiterates Hold on ON Semiconductor, $60 Price Target

Stifel analyst Tore Svanberg reiterated a Hold rating and $60.00 price target on ON Semiconductor (NASDAQ: ON).

“In-line 4Q25 results, with revenue at $1.53bn (-1.3% q/q, -11.2% y/y) as Industrial revenue returned to y/y growth for the first time in eight quarters.

Management highlighted that Automotive inventory digestion is largely complete and the AI data center business delivered more than $250mn in revenue in CY25A.

1Q26 revenue guidance midpoint of $1.49bn (-2.6% q/q, +3.1% y/y) came in -1.0% lower than our $1.50bn estimate.

Overall, while the 1Q26 guidance came in slightly below our expectations, especially contemplating recent peer guidance, we believe the company’s long-term growth trajectory is achievable, driven by content opportunities per DC rack scaling to ~$105k by 2030, and a Treo platform funnel that has already surpassed $1B in design wins.

Net/net, we maintain our Hold rating at this time, pending sustained GM improvement.

Maintained 12-month TP of $60 (16.3x CY27E P/E multiple).”

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