Shares of ON Semiconductor Corp. fell late Monday even as the chip maker narrowly topped Wall Street expectations with its first-quarter earnings results and issued solid quarterly guidance amid increased investor “expectations.”
The chip maker posted adjusted earnings of 64 cents a share, up from 55 cents a share last year and just above the Wall Street consensus of 61 cents a share. Revenue rose 1.5% to $1.51 billion, also slightly above the analyst consensus call for $1.49 billion.
In February, ON Semiconductor forecast first-quarter profit between 56 and 66 cents a share on sales ranging from $1.435 billion and $1.535 billion.
ON Semi stock fell 4% in after-hours trading on Monday after ending the regular trading session down about 1% to $102.04. Shares have revved 88% higher so far this year after soaring 63% in April.
A Morgan Stanley analyst team, led by Joseph Moore, on April 27 wrote that with ON Semi stock advancing into earnings, “it’s clear that expectations have meaningfully come up since last quarter.” The firm has a price target of $85 a share.
The company on Monday also outlined second-quarter guidance, expecting profit of 65 cents to 77 cents a share on revenue between $1.54 billion and $1.64 billion. That compares with Wall Street’s consensus profit view of 66 cents a share with revenue totaling $1.53 billion, according to FactSet.
“We exceeded expectations as demand strengthened through the quarter and we have moved beyond the cyclical trough on a path to recovery. Our AI data center business accelerated, growing more than 30% sequentially,” CEO Hassane El‑Khoury said in the earnings release.
“Looking ahead, we are encouraged by the underlying health of the business and the long‑term opportunities driven by increasing semiconductor content in automotive, industrial and AI data center applications,” El-Khoury added.
ON Semi is reliant on sales to auto makers, counting Tesla and Chinese electric vehicle company NIO among its customers, which makes up around half its total revenue. However, demand for vehicles has been sluggish for multiple years.
In 2025, ON Semiconductor’s automotive business made up 51% of its revenue and 28% was in its industrial segment—which includes energy storage and electric vehicle charging infrastructure. The company’s work for artificial intelligence data centers, 5G cellular infrastructure, computers, and smart phones among other sales services made up 21% of total revenue, according ON Semi’s regulatory filings.