Mizuho Lowers ON Semiconductor Price Target to $95

Mizuho analyst Vijay Rakesh lowered the price target on ON Semiconductor (NASDAQ: ON) to $95 (from $110) while maintaining an Outperform rating.

“We share our thoughts post ON’s Investor Day.

Key takeaways include: 1) ON introduced its Embedded Power Platform (EPP) to improve power density by combining Electrical, Mechanical and Thermal in a single wafer, 2) AI DC the key growth driver, with 2026E/27E both up 2x y/y and seeing 50% LT CAGR driven by move to 800V, 3) auto expected to continue to outpace SAAR by 9 ppts/yr with autonomous, SDV/zonal, and electrification tailwinds, while it sees industrial growing at ~10% CAGR, driven by physical AI and the AI halo, 4) updated financial targets: revenue growing at 12-14% CAGR (up from 10-12% CAGR), GM at 53% (vs.

2026E at ~40%) and OM expanding to 38% vs ~22% in 2026E, with SYNA providing upside.

We reiterate ON as Outperform; lower PT to $95 (prior $110) on lower peer multiples, as see it leading AI DC power and seeing strong automotive/industrial tailwinds.”

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