Particle.news
Download on the App Store

BofA Upgrades ON Semiconductor to Buy With $85 Target

The call points to rising demand for AI power gear plus a three-year, $6 billion repurchase plan.

Overview

  • ON Semiconductor, which received a BofA upgrade to Buy with an $85 target Monday, drew support for its AI power pipeline and Treo product momentum.
  • BofA projects pro forma earnings and free cash flow of $6 to $7 per share by 2028, roughly twice today’s levels.
  • Shares traded near a 52-week high of $73.76 after a roughly 96% gain over the past year.
  • Institutional positioning looked mixed, with Iridian boosting its Q4 stake as company insiders sold about $6.09 million in stock last quarter.
  • Industry checks show MOSFET lead times near 25 weeks, a sign of strengthening demand that could lift power-chip suppliers like ON.