Seaport Research Partners initiated coverage on ON Semiconductor (onsemi). The firm assigned a "Buy" rating. It set a $100 price target.
Seaport cites expected demand from the artificial intelligence data center buildout. The firm also notes improving demand for analog chips in the industrial and automotive sectors.
Analyst Jay Goldberg named onsemi one of the "four horsemen of AI." He included Marvell and Semtech in this group. Marvell and Semtech also received "Buy" ratings.
Seaport holds a more positive view than the broader market on onsemi's planned acquisition of Synaptics. The firm cites potential for market expansion. It also expects future margin synergies from the acquisition.