ON Semiconductor’s stock surged 5.07% in after-hours trading after the company reported second-quarter financial results that surpassed analyst expectations and provided an optimistic forecast fueled by artificial intelligence demand.

The chipmaker posted adjusted earnings per share of $0.74, beating the consensus estimate of $0.71. Revenue climbed 9% year-over-year to $1.603 billion, also exceeding the $1.588 billion analysts had anticipated. For the third quarter, ON Semiconductor guided for revenue between $1.65 billion and $1.75 billion and adjusted EPS of $0.81 to $0.93, both ranges coming in above Wall Street forecasts.

Chief Executive Officer Hassane El-Khoury highlighted the central role of AI data centers in the company’s growth, saying it remains the fastest-growing business and that revenue from this segment is now expected to more than double in 2026. The combination of a strong quarterly beat and the bullish AI-driven outlook fueled investor enthusiasm in extended trading.