ON Semiconductor shares surged 7.21% in Monday's trading session after the company reported second-quarter financial results that exceeded analyst expectations and issued an upbeat forecast underpinned by rapid growth in 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 above the $1.588 billion that analysts had projected. For the third quarter, ON Semiconductor guided for revenue between $1.65 billion and $1.75 billion and adjusted EPS between $0.81 and $0.93, both ranges coming in ahead of Wall Street forecasts.

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