onsemi (NASDAQ: ON) is a bold play on physical AI with unparalleled opportunity due to its position in the semiconductor ecosystem, the planned acquisition of Synaptics, and potential next moves that could surprise the market. The company is perfectly positioned as a hardware provider, producing silicon carbide and gallium nitride semiconductors suitable for a wide range of high-performance applications.
The driver today is data center buildout, with demand centered across the data center power tree, but the long-term opportunity is edge computing, physical AI, robotics, and autonomous machines, including vehicles.
