Onsemi forecasts upbeat revenue on surging AI data center chip demand

Aug 3 (Reuters) - Chipmaker ‌Onsemi on ​Monday ​forecast third-quarter revenue above Wall Street expectations, betting on surging demand for power management ‌chips used in AI data centers.

Onsemi's results come ⁠as it looks to its biggest deal yet, a $7 ‌billion all-stock acquisition of Synaptics ‌announced in June, to tap into growing demand from AI devices and robotics.

Here are some details:

• ​Onsemi forecast its third-quarter revenue in the range of $1.65 billion to $1.75 billion, the midpoint of ⁠which is above analysts' average estimate of $1.67 billion, according to LSEG data.

• "AI ​data center remains our fastest-growing business and we now expect revenue to more than ​double in 2026, demonstrating the ‌strength of our intelligent power portfolio and growing customer adoption across the power ⁠tree," CEO Hassane El-Khoury said.

• The company posted second-quarter revenue of $1.6 billion, in line with expectations of $1.59 billion.

• ⁠Adjusted earnings per share came in at $0.74, above estimates of $0.71.

• It ​expects third-quarter adjusted EPS in the range of $0.81 to $0.93, the midpoint of which is above estimates of $0.83.

• Shares of ‌the company were down 1.5% after the bell.

• Onsemi is also pressing ahead ‌with its "Fab Right" strategy to cut costs. In July, ⁠it sold two of ‌its manufacturing facilities ​as part of this strategy.

(Reporting by Nithyashree R B in Bengaluru; Editing by Shreya ‌Biswas)

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