onsemi (ON) faces scrutiny after Q1 beat as investors weigh AI demand, auto stabilization

onsemi (ON) drew investor scrutiny after its first-quarter earnings call, despite reporting revenue and non-GAAP earnings above Wall Street expectations, as analysts focused on whether AI data-center demand and early automotive stabilization can sustain growth. Management said demand was accelerating in AI data centers and showing initial signs of stabilization in automotive. The company also cited a ramp in its Treo product platform and strong sequential growth in its power portfolio as contributors to the quarter. Key investor questions center on revenue contributions from Treo and gallium nitride products, whether AI and automotive demand can support gross-margin gains, and progress in normalizing inventory as strategic stockpiles decline. Pricing actions versus input-cost inflation remain another focus. onsemi shares recently traded at $102.89, roughly in line with $102.04 before the earnings update.