ON Semiconductor Faces Questions Over $7 Billion Synaptics Deal

This article first appeared on GuruFocus.

ON Semiconductor (NASDAQ:ON) is drawing fresh investor scrutiny after Citi said its planned $7 billion acquisition of Synaptics (SYNA) could support its AI strategy, but still needs more detail, according to Seeking Alpha.

Citi said Synaptics would bring Astra AI processors, including MPUs, MCUs, and integrated NPUs for multimodal intelligence, along with wireless connectivity across Wi-Fi 6, Wi-Fi 6E, Wi-Fi 7, Wi-Fi 8, Bluetooth, Thread, and Zigbee. That would move ON Semi beyond its core power and analog business and give it more exposure to physical AI applications.

ON Semi said the deal could expand its total addressable market to $243 billion by 2030, add to adjusted earnings within 18 months of closing, and generate $200 million in annual synergies. The company also said gross margins should remain consistent and reiterated its outlook for revenue of $1.535B to $1.635B and adjusted EPS of $0.65 to $0.77.