Valuation Gap Among Semiconductor Peers Driven by AI Expectations
What happened
Texas Instruments and Analog Devices are trading at forward earnings multiples of 28x and 23x, respectively. In contrast, onsemi trades at 17x forward earnings, indicating a notable valuation difference among the three companies. This gap is partly attributed to expectations that onsemi's AI data center business could more than double in 2026.
From aol.com
Why it matters
The market expectations are heavily influenced by the adoption of advanced technologies in data centers. For onsemi, this includes the potential for SiC revenue growth to approach 60% in 2026 as data centers adopt 800-volt DC power.
From aol.com
Who's involved
- Texas InstrumentsCompetitor in the analog semiconductor market
- Analog DevicesCompetitor in the analog semiconductor market
- onsemiSpecializes in intelligent power and sensing technologies
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- onsemiSpeculative
onsemi could experience significant revenue growth if its AI data center business expectations materialize.
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The entities involved
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Texas Instruments
American multinational semiconductor design and manufacturing company
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Analog Devices
American company