BUZZ-Onsemi rises on optimistic forecast and Ferric deal

November 3 - ** Chip manufacturer ON Semiconductor Corp ON.O shares rose 3.6% in pre-market trading to $72.65

** The company announced (link) it will acquire Ferric for $600 million in cash, with up to an additional $175 million to be paid if certain revenue milestones are met

** Ferric designs power converters and voltage regulators for semiconductors, which help improve processor efficiency

** Revenue from AI data centers is expected to more than double year-on-year in 2026, and double again in 2027

** It is expected (link) that fourth-quarter revenue will be between $1.72 billion and $1.82 billion, with adjusted earnings per share of $0.95 to $1.07—both well above market expectations

** Operating expenses remained largely flat in the third quarter due to cost control measures

** Of the 31 analysts covering the stock, 17 have a “hold” rating, 12 have a “buy” rating and 2 have a “strong buy” rating; the median price target is $99—data compiled by LSEG

** As of the last trading day’s close, the stock has risen 29.5% year to date

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