ON Semiconductor Rallies as CoreWeave Cloud Forecast Eases AI Hardware Fears
ON Semiconductor shares rose 6.3% after cloud operator CoreWeave lifted its 2026 revenue guidance, following an earlier 9.1% gain during a broader post-election tech recovery.
Shares of ON Semiconductor Corporation jumped 6.3% in afternoon trading, lifted by specialized cloud infrastructure provider CoreWeave raising its annual sales outlook. The revised forecast eased investor worries over softening demand for computing hardware. CoreWeave reported third-quarter revenue of $3.66 billion, a 168% surge year-over-year, alongside an order backlog of $132.5 billion. It raised its 2026 revenue guidance to between $13.0 billion and $13.3 billion, surpassing the $12.9 billion Reuters consensus, and set capital expenditure targets between $37 billion and $39 billion.
The broader semiconductor sector tracked the positive movement, reflecting how cloud capital spending directly supports future silicon demand. Credit analysts at JPMorgan noted in research cited by CNBC that expanding cash flow and projected adjusted profitability by 2028 address immediate financing concerns, keeping hardware delivery schedules intact. Other analog chipmakers also posted gains, with Power Integrations advancing 5.7%, Analog Devices rising 4%, and Microchip Technology climbing 3.8%.
This latest boost follows a 9.1% gain for onsemi shares two days earlier, when semiconductor stocks rebounded from an election-related retreat. CNBC reported that investors reevaluated future data center buildouts after Democrats took control of Congress. Analysts at JPMorgan stated to CNBC that they do not see computing hardware as a continued sell, noting that a more stable technology tape would make the spending upcycle appear more sustainable. As of recent trading, onsemi stood at $73.68 per share, up 30% year-to-date but 45% below its 52-week high of $133.93 reached in June 2026.
Earlier in November, onsemi made a strategic change to its European manufacturing plans. The company and the Czech Ministry of Industry and Trade mutually agreed to cancel a multi-year, $2 billion silicon carbide expansion in Rožnov pod Radhoštěm due to shifting market dynamics and project economics. The project had originally been announced in June 2024 to establish end-to-end silicon carbide production. Existing silicon and silicon carbide operations at the Rožnov plant remain operational, and management affirmed that it will maintain ongoing investments and hiring in both Rožnov and its Brno development center.