ON Semiconductor has significantly raised its long-term revenue growth targets, projecting $11 billion by 2030, primarily driven by an expected doubling of its AI data center revenue in 2026 and again in 2027. This ambitious outlook, coupled with new product announcements and margin targets, signals a strong strategic shift towards high-growth markets, potentially boosting investor confidence despite recent technical weakness.
ON Semiconductor has unveiled an ambitious 2030 plan, raising its revenue compound annual growth rate target to 12-14% and projecting $11 billion in revenue, up from previous estimates. The core driver for this accelerated growth is the AI data center business, which the company expects to more than double in 2026 and again in 2027, reaching over $2.5 billion by 2030 from $500 million in 2026. This indicates a significant strategic pivot and investment in the burgeoning AI infrastructure market, where ON expects its content per AI rack to jump from $15,000 to over $115,000. This news is a strong positive catalyst for ON Semiconductor, signaling long-term growth potential and a clear strategy to capitalize on AI and electrification trends, despite short-term technical stock weakness. Investors will be watching for execution on these targets and the successful rollout of new technologies like the Embedded Power Platform.