Key facts
- Onsemi forecasts Q3 revenue of $1.65 billion to $1.75 billion, above analysts' $1.67 billion estimate.
- The company expects Q3 adjusted EPS between $0.81 and $0.93, surpassing the $0.83 estimate.
- Second-quarter revenue was $1.6 billion, in line with expectations, with adjusted EPS at $0.74, above estimates.
- CEO Hassane El-Khoury anticipates AI data center revenue will more than double by 2026.
- Onsemi is pursuing a 'Fab Right' strategy to reduce costs, including selling manufacturing facilities.
Onsemi, a chipmaker, has forecast third-quarter revenue exceeding Wall Street expectations, driven by robust demand for its power management chips used in AI data centers. The company anticipates its revenue from this segment will more than double by 2026.
For the third quarter, Onsemi projects revenue between $1.65 billion and $1.75 billion, surpassing the consensus estimate of $1.67 billion. The company also expects adjusted earnings per share to be in the range of $0.81 to $0.93, higher than the estimated $0.83.
In the second quarter, Onsemi reported revenue of $1.6 billion, aligning with expectations, and adjusted earnings per share of $0.74, which was above the $0.71 estimate. The company is also progressing with its acquisition of Synaptics for $7 billion in an all-stock deal, aiming to capitalize on the growing demand from AI devices and robotics.
Onsemi is implementing a cost-cutting strategy known as 'Fab Right,' which included the sale of two manufacturing facilities in July. Despite the positive outlook, the company's shares saw a 1.5% decline in after-hours trading.