ON Semiconductor Corp (NASDAQ:ON) is trading 0.4% lower at $80.08, shrugging off better-than-expected second-quarter results and an upbeat outlook, fueled by accelerating demand from AI data centers. The company earned 74 cents per share on $1.6 billion in revenue, beating analysts' estimates of 71 cents per share on $1.59 billion. ON also posted stronger-than-expected margins and said its AI data center business is expected to more than double in 2026.
The chip sector has seen quite a bit of volatility this past month, and ON has shed 9.6% during this time. Before today's bounce, the equity had pulled back to the 180-day moving average, which provided support in March. Year to date, the equity is up 52.2%.
No fewer than six analysts cut their price targets after the event. Of the 28 analysts covering ON Semiconductor, 17 carry a "hold" rating, while 11 rate the shares a "buy" or "strong buy."
Notably, short interest accounts for 8.1% of the stock's available float. It would take shorts 2.5 days to cover their bets.
Options traders have shown a preference for calls. ON's 50-day call/put volume ratio of 3.42 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 86% of annual readings.
Meanwhile, the stock's Schaeffer's Volatility Scorecard (SVS) of 97 out of 100 indicates the shares have consistently exceeded options traders' volatility expectations over the past year.
