ON Semiconductor Corporation

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Bullish +65

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

AI-generated 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.

📈 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

AI-generated analysis

ChartMill identifies ON Semiconductor (NASDAQ:ON) as a compelling value investment opportunity, noting that the stock trades at a discount relative to its intrinsic worth within the intelligent power and sensing solutions sector. The analysis highlights a 'Decent Value' screen rating of 7 for valuation, suggesting the market may be undervaluing the company's cash generation and earnings power compared to industry peers. The article assesses ON Semiconductor's financial health as solid with a rating of 7 out of 10, providing a necessary margin of safety for value investors. While profitability and growth ratings are mixed at 6 out of 10, the company is predicted to return to solid growth following a cyclical slowdown. Its strategic positioning in automotive and industrial markets supports the view that recent metric declines may be temporary rather than indicative of fundamental deterioration. Technical analysis indicates ON Semiconductor is currently in a confirmed uptrend with strong recent price action. The stock exhibits characteristics of a large, established company with financial strength, though it remains sensitive to economic cycles and displays elevated market sensitivity and volatility. Investors are encouraged to view the current discount as a potential entry point for portfolios seeking value with growth recovery potential.

📊 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.