Onsemi guides Q3 revenue above estimates on AI data center power chips

Chipmaker Onsemi forecast third-quarter revenue above Wall Street expectations, citing surging demand for power management chips used in AI data centers, Reuters reported. The company guided third-quarter revenue to $1.65 billion to $1.75 billion, a midpoint above analysts' $1.67 billion average estimate from LSEG data. CEO Hassane El-Khoury said AI data center remains its fastest-growing business and that it now expects that revenue to more than double in 2026. Second-quarter revenue was $1.6 billion, in line with expectations of $1.59 billion. Adjusted earnings per share were $0.74, above estimates of $0.71. Third-quarter adjusted EPS is expected at $0.81 to $0.93, midpoint above the $0.83 estimate. Shares were down 1.5% after the bell. Reuters said the results come as Onsemi pursues its biggest deal yet, a $7 billion all-stock acquisition of Synaptics announced in June, aimed at AI devices and robotics demand. The company is also advancing its Fab Right cost-cut strategy and in July sold two manufacturing facilities as part of that plan.