Here's Why ON Semiconductor Just Made a $7 Billion Bet on AI

It's fair to say that ON Semiconductor's (NASDAQ: ON) $7 billion acquisition of artificial intelligence (AI) edge solutions company Synaptics (NASDAQ: SYNA) didn't receive a warm welcome from the market. The stock sold off sharply on the announcement and has only recovered slightly since. It's a bold move that needs some explaining, not least because the sell-off could be a great opportunity for investors. Here's why.The slump in the share price likely occurred because investors woke up to a fundamentally different company after the deal was announced. The company is best known for its power and sensing chips sold to its key automotive (electric vehicles) and industrial verticals. It also has fast-growing revenue from AI data centers, and its partnership with Nvidia to create power chips for a new generation of data centers promises to accelerate its growth.In fact, I selected the company as my top stock to buy for 2026 on the basis of a cyclical recovery in its EV and industrial end markets, combined with its AI data center revenue and a highly compelling cash-flow-based valuation.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool