onsemi shares rise 6.5% as bullish chip-demand signals and a near-term investor event lift sentiment - Quiver Quantitative

onsemi (ON) stock rose 6.5% amid a broader semiconductor risk-on sentiment, driven by positive industry-level forecasts reinforcing expectations for strong 2026 demand, particularly in AI infrastructu... Read original →

onsemi’s 6.5% stock surge signals market pre-pricing of its AI data center power IC demand. Technically, its SiC and intelligent power modules are being integrated into NVIDIA’s GB200 NVL72 racks, straining upstream 8-inch SiC foundry capacity (e.g., GlobalFoundries) and accelerating downstream liquid-cooling PSU designs. Geopolitically, tightening U.S. CHIPS Act audits and constrained advanced packaging in Taiwan, China are forcing onsemi to shift automotive SiC module production to Malaysia and the Czech Republic, raising near-term COGS by 5–7%. As Infineon and STMicro forge alliances in automotive AI SoCs, onsemi may divest non-core analog assets to double down on high-voltage power. If its 650V SiC MOSFET yield exceeds 85% within 18 months, PSU market share could jump from 12% to 25%—but risks loom from potential U.S. export controls expanding to mid-voltage power devices post-2026 election.