onsemi Projects 2.9% Revenue Rise After 11% YoY Drop

Context Analog‑chip maker onsemi (NASDAQ:ON) will release its Q1 earnings after markets close on Monday. The company posted $1.53 billion in revenue in the prior quarter, matching analyst forecasts but falling 11.2% from the same period a year earlier. Analysts now anticipate a modest rebound.

Key Facts - Forecasts call for onsemi’s Q1 revenue to rise 2.9% year‑over‑year, reversing a 22.4% drop recorded in the same quarter last year. - Texas Instruments reported 18.6% revenue growth, beating expectations by 6.6% and sending its shares up 19.4%. - Magnachip posted a 3.3% revenue increase, in line with consensus, but its stock fell 31.6%. - The analog‑semiconductor sector has seen an average 34.9% share‑price gain over the past month; onsemi’s stock outperformed with a 62.6% rise. - Analysts maintain an average price target of $75.17 for onsemi, below the current $103.25 share price.

What It Means The projected 2.9% growth suggests onsemi may have steadied after a year of revenue erosion, but the pace lags far behind Texas Instruments’ surge and even Magnachip’s modest gain. Investor sentiment remains bullish, reflected in the stock’s 62.6% month‑to‑month climb, yet the gap between market price and analyst targets signals caution.

onsemi’s ability to sustain the modest rebound will hinge on demand for analog components in AI‑driven servers and automotive applications. With peers delivering stronger top‑line performance, the company must demonstrate that its product mix and cost controls can translate the forecasted growth into earnings momentum.

Watch next: onsemi’s earnings release, its guidance for the next quarter, and any updates on its AI‑related product pipeline.