ON Semiconductor CEO Hassane El-Khoury: Compute will be at the center of everything we do

Watch on YouTube ↗  |  September 16, 2026 at 21:16  |  5:37  |  CNBC
Speakers
Hassane El-Khoury — CEO, ON Semiconductor

Summary

ON Semiconductor CEO Hassane El-Khoury joins CNBC's Kristina Partsinevelos at the company's Investor Day to discuss the core business, the pending Synaptics acquisition, gross margin targets, and AI data center demand. He defends the deal and the $213B TAM, says the 53% gross margin target is a milestone rather than an end state, and forecasts no AI slowdown with strong visibility into 2027. The stock was down 9% on the day and has fallen sharply over three months, but management remains bullish on compute-driven growth.

  • ON Semiconductor held its Investor Day with shares down 9% and down 40% over three months.
  • CEO Hassane El-Khoury says the core ON Semi TAM is $213B and will exceed $243B once Synaptics closes.
  • Management describes the Synaptics deal as complementary and value-creating, with integration planning progressing.
  • The 53% gross margin target is framed as a milestone, not a destination, with step-function improvements expected.
  • New technology across automotive, AI data center, and industrial is expected to drive mix and margins.
  • El-Khoury sees no AI slowdown, citing committed projects and visibility into 2027 AI data center revenue.
  • ON anchors its AI growth on 30% market growth plus 10% outperformance, with 2026-2027 growth over 100%.
Ideas
Hassane El-Khoury CEO, ON Semiconductor 0:54
ON core strong, Synaptics adds value.
ON Semiconductor's core business is strong and its Investor Day highlights a $213B TAM, with the number set to exceed $243B once the Synaptics acquisition closes. The company is introducing differentiated new technology across automotive, AI data center, and industrial that should improve revenue mix and drive step-function gross margin gains; management calls the 53% gross margin target a milestone rather than an end state. Compute is central to the strategy, and the Synaptics combination is expected to create one-plus-one-is-more-than-two value.
ON HIGH
Hassane El-Khoury CEO, ON Semiconductor 4:21
AI data center demand won't slow.
AI data center demand is not slowing. The buildout already in progress gives visibility beyond the next couple of years, and ON has 2027 AI data center revenue visibility from committed projects as of September 2026. ON anchors its growth on a 30% market growth rate, in the middle of the range, plus 10% outperformance; TAM growth is 40%, with 2026 and 2027 growing over 100%. Content growth should continue as more compute is deployed.
AI-SECTOR HIGH
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This CNBC video, published September 16, 2026, features Hassane El-Khoury discussing ON, AI-SECTOR. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Hassane El-Khoury  · Tickers: ON, AI-SECTOR