ON Semiconductor Acquires Synaptics for $7 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2026
0mins
Source: Newsfilter
ON Semiconductor's stock rose by 5.02% as it crossed above the 5-day SMA, reflecting a positive market reaction to its recent acquisition announcement.
The company is acquiring Synaptics in an all-stock deal valued at approximately $7 billion, marking its largest acquisition to date. This strategic move is expected to expand ON Semiconductor's addressable market by $30 billion to $243 billion by 2030, highlighting strong growth potential in the physical AI sector. Analysts have responded positively, with Cantor Fitzgerald raising ON's price target from $100 to $110, indicating confidence in the company's future performance.
This acquisition not only enhances ON Semiconductor's market position but also aligns with the growing demand for AI-enabled devices, suggesting a promising outlook for the company moving forward.
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Analyst Views on ON
Wall Street analysts forecast ON stock price to fall
19 Analyst Rating
9 Buy
10 Hold
0 Sell
Moderate Buy
Current: 94.690
Low
50.00
Averages
61.25
High
80.00
Current: 94.690
Low
50.00
Averages
61.25
High
80.00
About ON
ON Semiconductor Corporation is engaged in providing intelligent power and intelligent sensing solutions. The Company’s intelligent power technologies enable the electrification of drivetrain in the automotive industry to allow for lighter and longer-range electric vehicles. Its segments include Power Solutions Group (PSG), the Analog and Mixed-Signal Group (AMG) and the Intelligent Sensing Group (ISG). PSG segment provides a portfolio of discrete, module, and integrated semiconductor devices designed to enable conversion across artificial intelligence (AI) data centers, energy infrastructure, automotive and industrial. AMG segment designs and develops a range of analog and mixed-signal solutions including power‑management, sensor‑interface, connectivity, and products that serve automotive, industrial automation, AI data center, computing, and mobile end markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Geopolitical Risks Heightened: Crude oil prices surged to a 1.5-week high due to attacks on shipping in the Strait of Hormuz, raising inflation expectations and pushing bond yields higher, with the 10-year T-note yield reaching a 3.5-week high of 4.54%, adding uncertainty to the market.
- Strength in Software Stocks: Despite the overall market pressure, strong performance in software stocks indicates a rotation of funds into other sectors, with companies like Workday seeing stock price increases of over 4%, providing some support for the market.
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- Investigation Launched: Pomerantz LLP is investigating whether ON Semiconductor and its executives have engaged in securities fraud or other unlawful business practices, aiming to protect investor rights and seek legal remedies.
- Acquisition Agreement: On June 25, 2026, ON Semiconductor announced an all-stock deal to acquire IoT company Synaptics for approximately $7 billion, with Synaptics shareholders receiving 1.35 shares of ON stock for each share held.
- Stock Price Decline: Following the announcement of the acquisition, ON Semiconductor's stock price fell by $28.09, or 23.66%, closing at $90.65 per share on June 26, 2026, indicating a negative market reaction to the deal.
- Legal Context: Pomerantz LLP is a prominent securities class action law firm that has been advocating for victims of securities fraud and corporate misconduct for over 85 years, highlighting the significant legal risks facing ON Semiconductor.
See More
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- Samsung's Earnings Disappointment: Despite a staggering 19-fold profit increase, Samsung Electronics' stock dropped over 8% in South Korea, reflecting investor concerns over high valuations in the semiconductor sector, which could undermine overall market confidence.
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- Widening Trade Deficit: The US trade deficit widened to $77.6 billion in May, the largest in 14 months, which could negatively impact Q2 GDP, further exacerbating market uncertainties.
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- Cost Savings Expected: These transactions are projected to result in annual cost savings of approximately $35 million, with initial savings starting in 2027 and full savings realized by 2028, thereby enhancing the company's financial health and profitability.
- Long-Term Supply Agreement: The agreement with Taiwan-based Greatek Electronics ensures ongoing production and customer commitments post-transaction, demonstrating onsemi's commitment to maintaining strong customer relationships.
- Market Reaction: Despite the strategic asset disposals, onsemi's shares fell 2.4% in premarket trading, reflecting market caution regarding the company's future profitability.
See More
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