Here’s The Real Reason Wall Street Cut ON Semiconductor Stock’s Price Target

ON Semiconductor (ON) delivered a quarter that usually triggers analysts' price upgrades. Revenue and earnings beat Wall Street’s expectations, free cash flow nearly quadrupled from a year ago, and management sounded optimistic about accelerating AI data center opportunities. Yet, the opposite happened, with many analysts lowering their respective price targets for ON stock. The stock even slipped 4% after earnings, even though it has climbed 45% year-to-date (YTD).

Here’s what happened.