ONON Semiconductor Corporation

“today, at the rack, you can think about a 120-kilowatt rack at roughly $9,500 of content. At the 800-volt or high-voltage rack, we are thinking about roughly $115,000 of content.”

“We now expect to outpace the power semiconductor growth for this market in 2026, with more than 40% revenue growth year over year and a market share approaching 60%”

“Last year, we talked about $250 million in AI revenue. We just mentioned that we will be doubling that this year.”

“Looking ahead, we now expect our AI data center revenue to double year over year in 2026.”

“We expect our 2026 AI data center revenue to double compared to full year 2025.”

“Turning to AI data centers, our revenue grew more than 30% quarter over quarter, nearly double our expected growth rate entering the quarter, driven by broader adoption across the PowerTree with multiple XPU vendors and all the leading hyperscalers.”

“With FlexPower, for example, our partnership now spans more than 30 active programs across intermediate bus converters, power supplies, battery backup, supercapacitors, and next-generation 800-volt DC architectures.”

“If you think about the AI data center, you are already seeing it in 2026. If you recall, we entered the year thinking we were going to be in the high-teens sequential growth for AI data center. We ended up at 30%.”

“Our AI data center business is accelerating, with Q1 revenue growing more than 30% quarter over quarter and doubling year over year, reflecting platform ramps and expanding engagement across the PowerTree.”

“For the first quarter, total revenue for the Other category was $299 million, an increase of 3% quarter over quarter due to AI data center strength.”

“And our Other market, which includes our AI data center, will be up mid-teens quarter on quarter.”

“We have all the power technologies from the wall to the core, both inside the data center, which is the revenue that we report, but also outside the data center, which we report under industrial. From a technology perspective, I feel very good. We have done some inorganic acquisitions in 2025 that are playing to our advantage. We talked about the Aurasemi acquisition, and we did the JFET silicon carbide acquisition.”

“As the only broad-based U.S. power semiconductor supplier, ON Semiconductor Corporation continues to build a leading position in AI data centers across the full set of power capabilities required to modernize the power tree, including high-voltage conversion, intelligent power stages, protection and control, and system-level integration from the grid to the processor.”

“We are not breaking it down to that level by product family, but I will tell you it is everywhere from low voltage all the way through high voltage. That includes mixed-signal analog on the GPU or XPU side—low voltage but high power—along with silicon carbide and silicon carbide JFET, and of course our medium- and high-voltage silicon anywhere in between.”

“The reference is across the XPU—whether it is GPU or CPU—the power delivery right at the GPU or XPU, in whatever form that is required, whether it is an SPS or anything else. Then if you keep going outside from that point, you go to the rest of the rack where you have the medium- and high-voltage discrete FETs and integrated analog mixed signal.”

“One hundred percent. We are fully focused on it. We have a dedicated team covering that not just from a go-to-market perspective, but from a product perspective as well. There is complete focus on it. It is a very large opportunity, and it is the same focus that we have across the company across the whole power tree.”

“Our Treo-based driver ICs and inductive position sensing combined with our gallium nitride products deliver high power density, efficiency, and ease of use in humanoid applications, AI data centers, and automotive.”

“We delivered revenue of $1.51 billion and non-GAAP diluted earnings per share of $0.64, both above the midpoint of guidance, driven by growth in AI data center.”

“The vertical GaN is more on the high voltage. We are sampling vertical GaN and we are on track to continue to do that, with revenue starting in '27.”

“power management for AI client platforms; and inductive position sensing for humanoids and advanced automation use cases.”

“The AI halo effect continues to drive incremental demand in adjacent infrastructure markets, particularly energy storage systems, as rising energy costs and declining battery prices accelerate project economics.”

“accelerating AI data center growth, and sustained gross margin expansion demonstrate that the structural changes we made over the past several years are now translating into tangible financial results.”

“The strength is not yet shown in automotive, but it will come, and it will come with even stronger allocation in the automotive market given that AI data center has been showing a ton of strength.”

“In AI data center, there is no inventory; it is all going to end build-out.”