ON Semiconductor Is More Than A Cyclical Auto Semi

I rate ON Semiconductor a Strong Buy with a $126 price target, implying ~30% upside from the current level of $97 per share. The main growth drivers are AI data center power, automotive content growth through 900V EV platforms and EliteSiC, plus Treo, vertical GaN and Synaptics. ON’s forward non-GAAP PEG ratio of about 0.95x is attractive versus the sector median of 1.37x, and my EPS bridge supports a price target of about $126, implying 30% upside. These growth drivers support the EPS growth from a 2026 EPS base of $2.84 to a 2028 EPS estimate of $4.265. I arrive at my price target by applying a 29.43x FWD non-GAAP P/E multiple to the 2028 EPS estimate of $4.265.

I am rating ON Semiconductor ( ON ) Strong Buy with a price target of $126, representing a 29.8% upside potential from the current level of $97 per share.