ON Semiconductor Corporation ON recently launched a GaNEXUS gallium nitride (GaN) power portfolio that could emerge as a key catalyst for its rapidly expanding AI data center business. The new portfolio is specifically designed to address the growing power-density, efficiency and thermal-management challenges faced by next-generation AI infrastructure.
The GaNEXUS family includes GaN FETs spanning voltage ranges from 40V to 650V, along with integrated smart GaN devices featuring built-in protection capabilities. According to ON, these solutions deliver faster switching speeds, lower switching losses, higher power density and improved thermal performance compared with traditional silicon-based technologies. These advantages are increasingly important as AI data centers consume more power and require greater energy efficiency.
Management highlighted that AI data centers are among the primary target applications for GaNEXUS, particularly in power delivery systems, intermediate bus converters, battery backup units and high-voltage power architectures. The technology can reduce magnetic component sizes by up to 60%, improve power density by as much as 2x and generate efficiency gains that can significantly lower operating costs at scale.
The GaNEXUS launch comes as onsemi gains momentum in AI data centers, with first-quarter 2026 revenues from the segment rising more than 30% sequentially and doubling year over year, driven by broader adoption across the power tree by multiple XPU vendors and leading hyperscalers. Management also disclosed that its overall GaN solutions design funnel has exceeded $1.5 billion, spanning products from 40V to 1,200V. This robust pipeline underscores growing customer interest in GaN-based power solutions and provides visibility into future growth opportunities.
Overall, GaNEXUS strengthens On Semiconductor's position in the fast-growing AI infrastructure market, with its advanced GaN solutions complementing existing power technologies and supporting long-term AI data center growth.
Competitive Landscape in AI Data Center Power Solutions
While On Semiconductor is strengthening its position in AI data center power management through the launch of its GaNEXUS portfolio, competition in the high-performance power semiconductor market remains intense. Key rivals such as Texas Instruments Incorporated TXN and STMicroelectronics N.V. STM are also investing heavily in technologies that support next-generation AI infrastructure.
Texas Instruments continues to capitalize on growing demand from data centers and enterprise computing through its leadership in analog and power management semiconductors. The company has significantly expanded its internal manufacturing footprint and 300-millimeter wafer capacity, enhancing supply-chain resilience and cost competitiveness. Its broad portfolio of power-management integrated circuits positions TXN to benefit from rising power-efficiency requirements across AI servers and data center architectures.
Meanwhile, STMicroelectronics is strengthening its presence in AI infrastructure through its expertise in silicon carbide, power management and industrial solutions. The company is increasingly targeting AI infrastructure opportunities, including high-efficiency power conversion systems and data center applications. STM is also expanding its capabilities in silicon carbide and optical interconnect technologies, which are expected to play an important role in supporting next-generation AI computing platforms.
ON’s Price Performance, Valuation & Estimates
Shares of ON Semiconductor surged 116.1% year to date (YTD) compared with the industry’s 61.3% rise.
ON’s YTD Price Performance
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From a valuation standpoint, ON trades at a forward price-to-earnings (P/E) multiple of 32.07, down from the industry’s average of 33.18.
ON’s P/E Ratio (Forward 12-Month) vs. Industry
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The Zacks Consensus Estimate for ON’s 2026 and 2027 earnings per share has increased in the past 60 days. The company is likely to report strong earnings, with projections indicating a 31.5% year-over-year rise in 2026 and 41.1% in 2027.
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ON Semiconductor currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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