Onsemi Forecasts Q1 Revenue Below Expectations Amid Weak Automotive Demand
Onsemi (ON) has announced a first-quarter revenue outlook that falls short of Wall Street analysts' estimates, citing a decline in automotive chip demand. The company's shares dropped by 9% in premarket trading.
According to LSEG data, Onsemi expects first-quarter revenue to range between $1.35 billion to $1.45 billion, below analysts' expectations of $1.69 billion. This signals ongoing sluggishness in the automotive chip market, as customers scale back orders for silicon carbide chips amid waning demand for battery-powered vehicles.
CEO Hassane El-Khoury shared, "While the 2025 outlook remains uncertain, we remain steadfast in our long-term strategy."
Despite the revenue miss, Onsemi reported fourth-quarter revenue of $1.72 billion, slightly lower than estimates of $1.76 billion.