ON Semiconductor Corporation

🇺🇸NASDAQ Global Select
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ON Semiconductor Corporation stock analysis ON overview
Bullish +65

Navitas (NVTS), ON Semiconductor (ON) And 3 More Stocks You Need To Be Watching - 24/7 Wall St.

📈 Analyst Eric Bleeker of 24/7 Wall St. recommends On Semiconductor (ON) as a $22 billion company with a projected EPS rebound from $2.91 this year to $5.36 by 2028.

🚀 The growth thesis for ON relies on a recovery in automotive and industrial markets, alongside its potential to become a third major revenue pillar in data centers.

📉 Navitas Semiconductor (NVTS) is highlighted as a turnaround candidate with revenue expected to jump from $46 million in 2025 to $122 million by 2028 due to Nvidia's new architectures.

💡 Wolf Speed is identified as a pure-play silicon carbide company showing sequential data center revenue growth of 50% last quarter, crucial for 800-volt data centers.

🔬 Aehr Test Systems (AEHR) is noted for its equipment used in testing new compounds, with revenue expected to recover from a trough to over $100 million by 2028.

⚡ STMicroelectronics (STM) is presented as a large, diversified semiconductor firm that could flip its narrative from a structural loser to an AI winner through photonics and power semiconductors.

Bullish Signals
  • On Semiconductor (ON) has strong Wall Street EPS estimates projecting a curve from $2.91 this year to $5.36 in 2028, driven by automotive and industrial rebounds.
  • Navitas Semiconductor (NVTS) is expected to pivot away from low-margin businesses toward data centers, with revenue forecasted to reach $122 million by 2028.
  • Wolf Speed is demonstrating early traction with a 50% sequential increase in data center revenue last quarter, indicating a successful shift from EV markets.
  • Aehr Test Systems (AEHR) has secured wins in optics, memory products, and custom ASICs, positioning it for significant revenue growth beyond current Wall Street expectations.
  • STMicroelectronics (STM) possesses a decent-sized power semiconductors business and photonics catalyst that could allow it to reverse its recent earnings decline from $4.46 to $0.53.
Risk Factors
  • On Semiconductor (ON) is currently relatively flat year-to-date and has declined 20% since mid-February, reflecting market skepticism about its immediate trajectory.
  • STMicroelectronics (STM) has seen its EPS crash from a peak of $4.46 in 2023 down to $0.53 in the last year, leading some investors to view it as a structural loser.
Full Analysis
In a recent episode of The AI Investor Podcast, 24/7 Wall St. analyst Eric Bleeker highlighted several semiconductor stocks poised to benefit from the next wave of AI-driven data center expansion. The discussion centers on companies that are currently facing revenue declines or skepticism but are expected to pivot successfully toward high-demand sectors like advanced power management for Nvidia's new Rubin architecture and data center applications. Bleeker specifically recommends On Semiconductor (ON), a $22 billion company, noting its flat year-to-date performance but strong projected earnings rebound driven by automotive and industrial markets. He forecasts EPS estimates of $2.91 for the current year, rising to $4.03 in 2027 and $5.36 in 2028, positioning ON as a diversified player with emerging data center potential. The analysis also covers Navitas Semiconductor (NVTS), which has seen significant revenue contraction but is expected to rebound sharply by 2027-2028 as it sheds low-margin businesses. Other mentioned names include Wolf Speed, Aehr Test Systems (AEHR), and STMicroelectronics (STM), all characterized as beaten-down stocks with potential for steep growth as the market re-prices opportunities in power management and optics for AI infrastructure.