ON Semiconductor Corporation

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ON Semiconductor Corporation stock analysis ON overview
Bullish +65

12 High Growth Semiconductor Stocks to Buy Now

📈 Analyst Vivek Arya identifies a structural shift in the memory sector driven by Micron's record Q3 2026 results and a 17% stock surge.

💡 Memory chips are deemed critical for AI, with manufacturing difficulties creating a more durable cycle supported by strong free cash flow.

📊 The featured list includes 12 semiconductor stocks selected for market caps over $2 billion and expected EPS growth of at least 30% over five years.

🏆 Ichor Holdings (ICHR) gained 22.8% recently, with B. Riley raising its price target to $125 ahead of anticipated memory-sector catalysts in late July.

🚗 Allegro MicroSystems (ALGM) received a price target increase to $70 by TD Cowen due to strong secular demand in automotive and AI data center sectors.

🔬 Ichor Holdings designs critical fluid delivery subsystems used in semiconductor capital equipment for major clients like Applied Materials and Lam Research.

📉 Allegro MicroSystems develops sensor integrated circuits and analog power ICs positioned for mid-teen percentage profitable growth long-term.

🤝 Insider Monkey's strategy of imitating top hedge fund picks has returned 599.2% since May 2014, beating its benchmark by 372 percentage points.

📅 The analysis is based on data sourced from Insider Monkey's database regarding hedge fund holdings and analyst ratings.

Bullish Signals
  • Micron posted record-breaking results for fiscal Q3 2026, causing its stock to surge roughly 17% to a record high.
  • Ichor Holdings (ICHR) has gained more than 22.8% over the past month and is trading near an all-time high with 86% of analysts maintaining a Buy rating.
  • B. Riley raised its price target on Ichor from $90 to $125, citing key clients Applied Materials and Lam Research as beneficiaries of leading-edge foundry manufacturing investment.
  • TD Cowen analyst Joshua Buchalter raised the price target on Allegro MicroSystems (ALGM) from $55 to $70 while maintaining a Buy rating.
  • Allegro MicroSystems is expected to deliver profitable mid-teen percentage growth over the long-term due to strong structural demand in automotive and AI data center sectors.
  • The memory sector is benefiting from disciplined pricing and a strong free cash flow generation trend, making the current cycle more durable than previous ones.
Full Analysis
Senior Semiconductor Analyst Vivek Arya of Bank of America Securities highlighted a structural shift in the memory industry, driven by Micron's record Q3 2026 results and a surge to a new high. Arya emphasized that memory chips are critical for AI, noting that manufacturing them is significantly more difficult than conventional chips. He pointed to disciplined pricing and strong free cash flow generation as key factors making this cycle more durable than previous ones. The article presents a curated list of 12 high-growth semiconductor stocks identified using screeners that filter for market caps over $2 billion and expected EPS growth of at least 30% over the next five years. The selection prioritizes companies popular among analysts and elite hedge funds, with the list ranked by the number of hedge fund holders sourced from Insider Monkey's database. Specific highlights include Ichor Holdings (ICHR), which gained over 22.8% in a month and received a price target raise to $125 by B. Riley due to its role in semiconductor capital equipment for major clients like Applied Materials. Allegro MicroSystems (ALGM) is also featured, with TD Cowen raising its price target to $70 based on an updated financial model that anticipates strong long-term growth driven by exposure to the automotive sector and AI data centers. The piece serves as a promotional newsletter entry from Insider Monkey, detailing their strategy of imitating top hedge fund picks which has historically returned 599.2% since May 2014. It concludes with links to subscribe to the newsletter and browse other investment lists, framing the stock analysis within the context of their broader paid research service.