ON Semiconductor's stock surged 5.04% during Tuesday's intraday trading session, marking a significant reversal from earlier declines in pre-market activity.

The rally comes despite the chipmaker reporting fourth-quarter revenue that missed Wall Street estimates and issuing a weaker-than-expected forecast for the current quarter. However, investors focused on positive analyst commentary, with at least ten brokerages raising their price targets for the stock following the earnings release.

Multiple analysts highlighted the company's accelerating AI data center revenue, which is running at an annualized rate above $400 million in the first quarter. This growth helps offset near-term weakness in other business segments and planned business exits. Firms including TD Cowen, Jefferies, Deutsche Bank, and Morgan Stanley were among those raising their targets, citing stabilizing end markets and the long-term potential of ON Semiconductor's position in the AI infrastructure buildout.