ON Semiconductor Corporation

🇺🇸NASDAQ Global Select

Articles

26
Show Summary
Show Bulletpoints
Detailed View
Bullish +75

Onsemi and Geely expand EV collaboration

🚗 Onsemi and NIO expand EV partnership for next-generation vehicle platforms.

⚡ Transition accelerates using Onsemi's EliteSiC M3e technology from 400V to 900V.

🔍 Tech boosts efficiency, reduces losses, and improves thermal management for ES9.

🚗 Onsemi and NIO are expanding their EV collaboration to advance next-generation electric vehicle platforms.

⚡ The partnership focuses on accelerating NIO's transition from 400V to 900V architectures using Onsemi's EliteSiC enhanced M3e technology.

🔋 EliteSiC technology improves switching performance and body diode characteristics, reducing energy losses and enhancing thermal management.

📈 These technical advances result in higher system output, improved drivetrain efficiency, and better overall vehicle performance.

🏗️ Onsemi's technology now supports NIO's flagship ES9 SUV and additional models launching at the 2026 Beijing Auto Show.

🤝 The collaboration builds on a history that began with Onsemi supporting NIO's initial 400V platform systems.

💡 Hassane El-Khoury, CEO of Onsemi, stated that system efficiency and scalability are critical in the new phase of electrification.

🚀 Management emphasized that deep engineering alignment helps accelerate the transition to high-voltage architectures and time-to-market.

🏎️ Alan Zeng, CEO of NIO's powertrain unit XPT, noted that their partnership has evolved from early 400V systems to current 900V platforms.

✨ The combined technical collaboration aims to deliver more efficient and high-performance vehicles to customers globally.

Bullish Signals
  • Onsemi and NIO expanded collaboration on 400V to 900V EV architectures.
  • EliteSiC M3e tech improves drivetrain efficiency with reduced energy losses.
  • New technology underpins NIO's flagship ES9 SUV.
  • Supports additional models at the 2026 Beijing Auto Show.
  • Deep engineering alignment ensures faster time-to-market for future platforms.
Risk Factors
  • Reliance on Onsemi EliteSiC creates supply chain and lock-in risks.
  • 2026 Beijing Auto Show transition exposes NIO to two-year execution delays.
  • Single-provider strategy limits bargaining power against competing suppliers.
Bullish Signals
  • Onsemi and NIO have expanded their collaboration to accelerate the transition from 400V to next-generation 900V EV architectures.
  • Onsemi's latest EliteSiC enhanced M3e technology enables optimized switching performance and reduced energy losses, improving overall drivetrain efficiency.
  • The new technology underpins NIO's flagship ES9 SUV and will support additional models debuting at the upcoming 2026 Beijing Auto Show.
  • Both companies are demonstrating deep engineering alignment to enable higher performance, improved efficiency, and faster time-to-market for future EV platforms.
Risk Factors
  • The partnership relies on Onsemi's EliteSiC enhanced M3e technology, which may introduce supply chain dependencies or lock-in risks for NIO as it transitions to high-voltage architectures.
  • NIO's transition to 900V architectures is scheduled for models debuting at the 2026 Beijing Auto Show, exposing the company to long-term execution risk and potential delays over the next two years.
  • The collaboration focuses on a single technology provider (Onsemi) for high-voltage systems, potentially limiting NIO's bargaining power or flexibility against competing semiconductor suppliers in future rounds.
Somewhat Bullish +50

How ON Semiconductor More Than Doubled NVIDIA’s Gains in April

📈 ON stock surged 51% in April, outpacing NVIDIA's gains significantly.

💰 Analysts raised price targets citing strong cash flow and structural growth.

⚠️ High valuation risks remain with a forward P/E of 34x.

🔍 Upcoming May 4 earnings will focus on silicon carbide market share.

🚀 ON Semiconductor (ON) stock surged 51% in April, more than doubling the 22% gain by NVIDIA (NVDA).

📈 B. Riley analyst Craig Ellis upgraded ON to Buy and raised the price target from $64 to $115, driving momentum.

💰 Other firms including Bank of America, Loop Capital, and TD Cowen also lifted their price targets citing strong cash flow.

⚡ The company's leadership in silicon carbide for EVs and AI data center power management provides structural growth drivers.

🔋 ON Semiconductor has a market cap near $25 billion compared to NVIDIA's $5 trillion, allowing for larger percentage gains.

📉 NVDA stock dipped Wednesday due to OpenAI cost-control concerns reported by the Wall Street Journal.

🛡️ ON remains insulated from AI cost narratives and extends its rally ahead of its May 4 earnings call.

⚠️ The high valuation presents risk with a forward P/E ratio of 34x and limited margin for an earnings miss.

📅 The upcoming Q1 2026 earnings release is scheduled for May 4 with the conference call at 5:00 p.m. ET.

🔍 Investors will be watching silicon carbide market share, hyperscaler commentary, and NVIDIA Blackwell sell-through data.

📉 CFO Thad Trent executed pre-arranged sales of 30,000 shares at $93 in late April as part of a 10b5-1 plan.

⚖️ Geopolitical and tariff uncertainties remain potential headwinds that could impact the current rally trajectory.

📉 The stock is now trading near $99 after an 83% run year-to-date, prompting investors to take a cautious approach.

Bullish Signals
  • ON Semiconductor stock climbed 51% in April, more than doubling NVIDIA's gains and establishing itself as a leader in the spring semiconductor surge.
  • B. Riley analyst Craig Ellis upgraded ON Semiconductor to Buy and raised his price target from $64 to $115, signaling confidence in an upcoming earnings inflection.
  • Other major firms including Bank of America Securities, Loop Capital, and TD Cowen lifted their price targets due to strong free cash flow and ongoing share buybacks.
  • The company secured a Sineng Electric solar and energy storage design win, demonstrating successful expansion into the renewables sector.
  • ON Semiconductor is a leader in silicon carbide (SiC) for electric vehicles and is increasingly positioned as a key player in AI data center power management.
  • CEO Hassane El-Khoury has flagged 'increasing signs of stabilization in our key markets,' suggesting a positive market turn.
  • The stock currently trades near $99 with trading volume momentum extending ahead of the May 4 earnings call.
Risk Factors
  • ON Semiconductor trades at an elevated forward P/E ratio of 34x, leaving little margin for error if earnings miss expectations.
  • The stock has already gained 83% year-to-date, making the parabolic move risky for investors entering current positions.
  • Future performance remains vulnerable to volatile auto and EV demand cycles as well as broader industrial cyclicality.
  • Geopolitical tensions and potential new tariffs could negatively impact the rally if Q1 2026 results disappoint or fail to confirm market stabilization.
  • Analyst Thad Trent executed pre-arranged sales of 30,000 shares at $93 in late April, which could signal concerns despite being scheduled.
  • Investors will be scrutinizing silicon carbide market share data and AI capex health via hyperscalers for confirmation of the growth thesis.
Neutral 0

Is It Too Late To Consider ON Semiconductor (ON) After Its 140% One Year Surge?

Stock surged 140% annually, though valuations suggest it is 34.5% overvalued.

DCF models price shares at $69.38, contradicting the current high market price.

Community opinions on fair value diverge significantly between $56 and $78.

Traditional metrics indicate the stock is expensive despite recent strong momentum.

Analysis relies on historical data and does not constitute financial advice.

- ON Semiconductor's stock price recently reached $93.30, marking a massive 140% surge over the past year and a 64.6% gain so far this year.

- The company has seen strong short-term momentum with returns of 7.4% in the last week and 59.9% over the previous month.

- Despite recent high performance, Simply Wall St's analysis assigns ON Semiconductor a low valuation score of just 2 out of 6.

- A Discounted Cash Flow model calculates an intrinsic value of $69.38 per share, suggesting the current price is approximately 34.5% overvalued.

- On a Price-to-Sales basis, ON Semiconductor trades at 6.12x, which is below the industry average but still above its proprietary Fair Ratio of 4.41x.

- The P/S analysis indicates the stock appears expensive when compared against a fundamental valuation metric that accounts for growth and risk factors.

- Investors can explore alternative community narratives where some participants estimate a fair value closer to $56.00 due to more cautious assumptions.

- Conversely, an optimistic community view could push the estimated fair value up to $78.63, creating divergent opinions on current pricing.

- The semiconductor sector is currently under scrutiny regarding how well major suppliers align with long-term technology trends and end market demand.

- Recent media coverage has focused on reassessing chip makers that play critical roles in future technological developments.

- The article notes that traditional valuation methods suggest the stock may be overvalued, contradicting its strong recent price action.

- Readers are encouraged to check Simply Wall St's Community page to compare their own valuation stories with other investors' differing views.

- This analysis relies on historical data and analyst forecasts without constituting specific financial advice or a recommendation to buy or sell.

Bullish Signals
  • The stock has posted an impressive return of 59.9% over the last 30 days and 64.6% year to date.
  • Recent performance shows a strong 140.1% gain over the last year, with 7.4% returns in the most recent week.
  • The P/S ratio of 6.12x is below the Semiconductor industry average of 6.88x and peer group average of 8.49x, indicating it trades at a relative discount to broad benchmarks.
  • Future cash flow projections show significant growth, with estimated free cash flow reaching $2.32b in 2030 from the latest twelve months of about $1.04b.
  • The company is positioned as an important supplier to long-term technology trends, attracting investor reassessment and positive market attention.
Risk Factors
  • The stock is trading at US$93.30, which is approximately 34.5% above the Discounted Cash Flow model's estimated intrinsic value of US$69.38, indicating significant overvaluation.
  • The Price-to-Sales ratio of 6.12x is notably higher than Simply Wall St's proprietary Fair Ratio of 4.41x after adjusting for specific risks and earnings growth profiles.
  • While the P/S multiple appears lower than the broader Semiconductor industry average (6.88x) and peer group average (8.49x), these benchmarks ignore ON Semiconductor's specific risk-adjusted fundamentals.
  • The valuation score of 2 out of 6 highlights multiple red flags in the company's current financial profile and growth prospects.
Somewhat Bearish -30

onsemi, Allegro MicroSystems, Entegris, Broadcom, and NXP Semiconductors Stocks Trade Down, What You Need To Know

📉 China trade probes trigger drops in major chip stocks like onsemi and Broadcom.

⚠️ Geopolitical tensions threaten helium supplies and energy costs for semiconductor manufacturing.

💰 Market overreaction creates buying opportunities for high-quality tech stocks despite volatility.

🏛️ U.S. government backing via 'Pax Silica' supports AI supply chains against risks.

📈 onsemi trades 19.2% below its record high after a positive year-to-date start.

📉 China initiated trade barrier investigations against the U.S., causing tech stocks like onsemi, Allegro MicroSystems, Entegris, Broadcom, and NXP Semiconductors to fall.

⚠️ The Chinese probes target U.S. export restrictions on advanced technology and bilateral investment limits, raising concerns for U.S. companies with operations in China.

🔥 Middle East geopolitical tensions are projected to disrupt helium supply chains, driving up costs for semiconductor chipmakers due to its essential role in manufacturing.

💰 Rising energy prices linked to the conflict stoke inflation concerns, potentially impacting consumer demand and business investment in technology sectors.

📈 Analysts suggest big price drops can present opportunities to buy high-quality stocks after the market overreacts to news.

📊 onsemi (NASDAQ:ON) fell 4.7% amid volatility, though this move does not fundamentally change its business perception despite the significant drop.

🚀 Allegro MicroSystems (NASDAQ:ALGM) dropped 2.9%, Entegris (NASDAQ:ENTG) fell 3.4%, Broadcom (NASDAQ:AVGO) dropped 2.4%, and NXP Semiconductors (NASDAQ:NXPI) fell 2.9%.

🤝 The previous positive move for onsemi was a 3.8% gain from news of a U.S. plan to create a $4 trillion funding consortium for semiconductor supply chains.

🏛️ This initiative expands the 'Pax Silica' program, signaling strong government support aimed at securing access to AI and chipmaking for the U.S. and allies.

📈 onsemi shares are up 3% year-to-date but still trade 19.2% below their 52-week high of $72.21 from February 2026.

💵 An investor who bought $1,000 worth of onsemi five years ago would currently hold an investment worth $1,493.

Bullish Signals
  • The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
  • onsemi is up 3% since the beginning of the year, indicating positive momentum despite recent fluctuations.
  • At $58.38 per share, onsemi is still trading 19.2% below its 52-week high of $72.21, suggesting significant upside potential.
  • Investors who bought $1,000 worth of onsemi's shares 5 years ago would now be looking at an investment worth $1,493, demonstrating long-term growth value.
  • The Trump administration's plan to create a voluntary investment consortium targeting $4 trillion in funding for semiconductor supply chains signals strong government support for the domestic chip industry.
  • The initiative is an expansion of the 'Pax Silica' program launched in December 2025, aiming to secure access to AI and chipmaking for the U.S. and its allies.
  • The U.S. government will contribute an initial $250 million toward the ambitious goal, boosting investor confidence in the sector.
  • Prospects of significant capital infusion could lead to development of new manufacturing facilities, research advancements, and a more resilient global supply chain.
Risk Factors
  • China initiated trade barrier investigations against the United States, escalating trade tensions and raising concerns about further trade restrictions impacting U.S. tech companies with significant operations in China.
  • Geopolitical tensions in the Middle East are projected to disrupt supply chains for key materials, specifically tightening global helium supplies essential for semiconductor manufacturing.
  • Helium scarcity is driving up prices, creating production challenges and increasing costs for chipmakers.
  • Rising energy prices linked to Middle East conflict stoked broader inflation concerns, which could potentially impact consumer demand and business investment in technology.
  • onsemi shares fell 4.7% in the afternoon session as market reaction to geopolitical risks outweighed positive developments.
  • The stock remains significantly below its peak, trading 19.2% below its 52-week high of $72.21 from February 2026 despite a government-backed initiative.
  • Volatility concerns persist with onsemi having experienced 30 moves greater than 5% over the last year, indicating continued market uncertainty.
Bullish +65

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

📈 On Semiconductor projected to reach $5.36 EPS by 2028.

🚀 Growth driven by automotive recovery and new data center revenue.

📉 Navitas revenue expected to jump from $46M to $122M by 2028.

💡 Wolf Speed shows 50% sequential growth in silicon carbide data center revenue.

🔬 Aehr Test Systems revenue expected to recover over $100M by 2028.

📈 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 EPS projected to rise from $2.91 to $5.36 by 2028.
  • Navitas revenue forecasted to reach $122 million by 2028 via data centers.
  • Wolf Speed data center revenue increased 50% sequentially last quarter.
  • Aehr Test Systems secured wins in optics, memory, and custom ASICs.
  • STMicroelectronics power semiconductors business could reverse earnings decline from $4.46 to $0.53.
Risk Factors
  • ON flat YTD, down 20% since mid-Feb.
  • STM EPS crashed from $4.46 peak to $0.53.
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.
Bullish +65

ON Semiconductor (NASDAQ:ON) Presents a Compelling Value Investment Case - ChartMill

📊 Decent Value rating of 7 indicates trading at a discount.

💰 Solid financial health rating of 7 offers margin of safety.

📈 Predicted return to growth after cyclical profitability slowdown.

🚗 Strategic automotive and industrial positions support long-term recovery.

📉 Recent declines viewed as temporary industry cycle effects.

📊 ON Semiconductor receives a 'Decent Value' screen rating of 7, indicating it trades at a discount relative to its financials and peers.

💰 The company maintains a solid financial health rating of 7 out of 10, offering a margin of safety for value investors.

📈 ON Semiconductor is predicted to return to solid growth after a cyclical slowdown in profitability and growth metrics.

🚗 The company holds a strategic position within the automotive and industrial markets, supporting long-term recovery prospects.

📉 Recent declines in financial metrics are viewed as potentially temporary industry cycle effects rather than fundamental issues.

📈 Technical analysis confirms ON Semiconductor is currently in a confirmed uptrend with strong recent price action.

⚠️ The stock exhibits elevated market sensitivity and stronger price volatility typical of cyclical sectors.

Bullish Signals
  • Trades at a discount to industry cash flow and forward earnings.
  • Financially healthy balance sheet with a rating of 7/10.
  • Analysts predict return to solid growth after cyclical slowdown.
  • Strategic placement in high-growth automotive and industrial markets.
  • Strong recent price action and confirmed technical uptrend.
Risk Factors
  • Profitability ratings mixed at 6/10; recovery from slowdown incomplete.
  • Elevated market sensitivity causes significant short-term price volatility.
  • Cyclical business characteristics increase downside risk in downturns.
Bullish Signals
  • ON Semiconductor trades at a discount to its industry based on cash flow and forward earnings, presenting a classic value investment setup.
  • The company possesses a financially healthy balance sheet with a rating of 7/10, which provides a margin of safety against market fluctuations.
  • Analysts predict the company will return to solid growth after the current cyclical slowdown in profitability and growth metrics.
  • ON Semiconductor's strategic placement in high-growth automotive and industrial markets suggests a reasonable path for value recognition.
  • The stock is currently showing strong recent price action and has entered a confirmed technical uptrend.
Risk Factors
  • Profitability and growth ratings are mixed at 6 out of 10, indicating the company has not yet fully recovered from a cyclical slowdown.
  • The stock exhibits elevated market sensitivity and stronger price volatility, which could lead to significant short-term fluctuations.
  • Business characteristics are more sensitive to economic and market cycles, increasing downside risk during broader economic downturns.