William Blair analyst Jed Dorsheimer has maintained their neutral stance on ON stock, giving a Hold rating yesterday.
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Jed Dorsheimer’s rating is based on ON Semiconductor delivering results and a margin outlook that were generally in line with expectations, yet not strong enough to signal a clear near-term rebound in the business. Management sounded more upbeat, citing improving trends in automotive and industrial markets and a sharply higher content opportunity in AI data center racks, but the latest quarter still did not provide convincing evidence of a full recovery under way.
He also notes that while AI-related power semiconductor demand is set to grow and divestitures should streamline the portfolio, current fab utilization is depressed and margins, though improving, are projected to only gradually return to about 40%, below prior floor targets. With data center growth needing time to offset divested revenues and end-market demand yet to fully reaccelerate, the risk‑reward appears balanced, supporting a Hold (Market Perform) stance rather than a more decisive bullish or bearish view.