ON Semiconductor’s second-quarter revenue rose 9% to roughly $1.60 billion, with adjusted EPS of $0.74 and free cash flow of $425.4 million
Management now projects AI data center revenue will more than double in 2026 and sees a $213 billion addressable market by 2030
A renegotiated Synaptics acquisition now offers $123 per share in cash, a lower price than the original deal, which CNBC’s Jim Cramer called ‘terrific news’
A chipmaker that had a rough summer just got a second look from one of TV’s loudest stock pickers. On the October 6 episode of Mad Money, Jim Cramer explained why he is reconsidering ON Semiconductor (NASDAQ: ON) after what he described as a turbulent few months. The numbers are already reported results, not forecasts: second-quarter revenue climbed 9% to approximately $1.60 billion, adjusted diluted earnings per share came in at $0.74, and free cash flow hit $425.4 million.
AI Power Demand Meets a Cheaper Deal
ON’s traditional business has centered on automotive chips that manage power efficiently, a skill set Cramer noted translates directly to cooling ‘warehouses full of red-hot servers.’ In its August earnings release, management projected, as a forward-looking estimate rather than a locked-in figure, that AI data center revenue would more than double in 2026, helped by new platform wins and an expanded role in Nvidia’s MGX ecosystem. At a September investor event, the company outlined a $213 billion addressable market opportunity by 2030 across automotive, industrial, AI data center and emerging applications, again a market-size estimate rather than a company revenue target. The bigger catalyst for Cramer was the Synaptics acquisition: the companies renegotiated terms to $123 per share in cash, down from the original, pricier agreement, which Cramer called a smarter deal for the same assets.
What This Means for Your Wallet
This story is less about everyday bills and more about the broader AI infrastructure buildout that increasingly touches jobs in chip design, manufacturing and data center construction. If you work in or near the semiconductor supply chain, deals like this renegotiated Synaptics agreement can signal where hiring and investment are headed next.
Why It Works This Way
Companies renegotiate acquisition terms when market conditions shift, in this case allowing ON to acquire the same technology assets at a lower price after broader tech valuations cooled. This week, if you follow a specific company’s earnings, check whether a cited financial figure is an actual reported result (like the $1.60 billion revenue) or a forward projection (like the $213 billion market estimate), the distinction matters. Disclaimer: This analysis is for educational and informational purposes only and should not be construed as financial or investment advice.
What to Watch Next
Watch for the Synaptics deal’s formal closing and ON’s next earnings report for signs the AI data center revenue doubling materializes as projected. Full commentary is available via Insider Monkey and CNBC’s Mad Money.
