By Unknown
Publication Date: 2026-10-07 10:19:00
Key Points
The AI market is likely to shift toward physical AI spending once the massive build-out of AI data centers starts to slow.
This company is aggressively targeting physical AI and already holds a leading position in power and sensing chips in the industry, positioning it for AI-led growth.
Most investors already know that there’s a massive build-out of AI infrastructure underway and that it’s likely to continue at least until 2030. However, the key question for long-term-thinking investors is where to invest as the build-out phase begins to slow and physical AI spending ramps up aggressively, with technologies like autonomous driving and robotics expanding.
One answer is ON Semiconductor(NASDAQ: ON), and the good news is that the stock trades on excellent multiples and is more attractive than better-known AI plays like Nvidia(NASDAQ: NVDA) and Advanced Micro Devices(NASDAQ: AMD).
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Image source: Getty Images.
ON Semiconductor is exposed to the AI infrastructure
The power and sensing business is best known for its play on power density in its traditional core end markets, namely automotive (mainly electric vehicles and autonomous driving) and industrial. Those two end markets still dominate its sales now.
