ON Semi tanks 20% following Synaptics deal as CEO defends core business

On Semi's stock plummeted 20% after announcing a significant deal with Synaptics, which expands its potential market by an additional $30 billion as the company shifts focus into physical AI. CEO Hassane El Khoury is defending the company's core business amidst this shift, signaling a strategic pivot that could redefine its market position. This move highlights the growing importance of AI in the semiconductor industry, suggesting that On Semi is positioning itself to capitalize on this burgeoning sector. The market's reaction underscores investor concerns about balancing traditional business with new, high-growth opportunities.