Onsemi lifts long-term growth outlook on AI data center demand
Onsemi now aims for annual revenue growth of 12% to 14% through 2030, an increase from its earlier 10% to 12% goal. The chipmaker expects its AI data center business to top $500 million in 2026 and $2.5 billion by 2030, while automotive and industrial units grow about 9% and 10% yearly. It also targets roughly $11 billion in total revenue by 2030 and points to its Nvidia MGX work and Synaptics deal as part of the plan.
At its September 2026 investor event, onsemi lifted its long-range annual growth goal to 12%-14%, up from 10%-12%, and set a roughly $11 billion revenue objective for 2030. The chipmaker expects AI data center sales to exceed $500 million in 2026 and $2.5 billion by decade's end, helped by rising power semiconductor content in AI racks.
Automotive and industrial divisions are projected to expand about 9% and 10% yearly. Onsemi also cites a $213 billion core power market by 2030, possible Synaptics-related expansion, and an Nvidia MGX Vcore socket win expected to contribute revenue in late 2026. Analysts remain divided, with J.P. Morgan bullish and Stifel more cautious.
Onsemi's raised outlook may signal continued investment in AI infrastructure, potentially affecting investors, chip supply chains, and electricity demand. Data centers' growing power needs could influence utility planning and consumer energy costs, while automotive and industrial chip demand may shape vehicle and factory technologies. Workers in semiconductor manufacturing and related sectors could see shifting job opportunities. These effects remain uncertain and depend on execution, adoption, and energy constraints.