To The Moon

Big Tech isn’t waiting around for the grid to catch up — they’re going straight to the source.

Recent reports show NVIDIA actively courting Korean power equipment firms, pushing for faster deployment of next-gen 800V DC infrastructure to support AI data centers.

Why?

Because AI demand is exploding faster than power supply can scale. And in this race, power = survival.

🚀 $ON Semiconductor(ON)$   — The Most Mispriced Play?

ON Semiconductor stands out as one of the most compelling setups right now:

Trading at ~20x forward earnings and ~13.5x EV/EBITDA

Roughly half the valuation of peers like:

Monolithic Power Systems (42–52x P/E)

Power Integrations (~38x P/E)

40% EPS growth annually over the next 3 years

PEG ratio < 1.0 → classic undervaluation signal

$6B buyback (~26% of market cap) adds strong downside support

📈 AI Revenue Inflection Is Already Happening

This isn’t a “future story” anymore:

AI data center revenue already exceeded $250M in 2025, doubling YoY

2026 run-rate tracking $300–350M

Long-term trajectory: $1B+ by 2028 as 800V DC adoption accelerates

⚙️ The Real Edge: Owning Both SiC and GaN

Unlike competitors, ON Semiconductor is playing both sides of the power stack:

First to scale vertical GaN (vGaN) — now sampling to early customers

Expanded into SiC JFET technology via acquisition

Direct exposure to AI data center power conversion + EV infrastructure

This dual-platform strategy positions them right in the middle of the AI + electrification supercycle.

⚠️ The Catch

Automotive still makes up ~80% of revenue — and that segment has been soft

The bull case depends on:

AI demand continuing to ramp

Auto stabilizing

📅 Near-Term Catalyst

Q1 2026 earnings: May 4

This could be the moment the market starts repricing the AI contribution.

🧠 Big Picture

The market is still pricing ON Semiconductor like a traditional auto chip supplier.

But the reality? It’s becoming a critical enabler of AI infrastructure in the 800V DC era.

Meanwhile, NVIDIA isn’t just building chips anymore — it’s actively shaping the power backbone of AI itself.

And that shift hasn’t been fully priced in yet.

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