ON Semiconductor Corporation (ON)
Is ON Semiconductor A Buy After FQ3'24 Earnings
ON Semiconductor's double beat FQ3'24 performance and decent FQ4'24 guidance continue to demonstrate demand stabilization, as similarly observed in the stable gross margins. If anything, the management has hinted at an outsized FY2025 performance, attributed to its hyperscaler design wins with three of the top players in North America. This is on top of the growing EV design wins in China and VWAGY, along with the increased industrial silicon carbide customer count across solar and energy storage end markets.
Onsemi's Strategic Bet On Silicon Carbide: The Future Is Bright For EV Adoption
OnSemi remains undervalued due to downturns in the auto and industrial markets, which are decreasing revenue and causing lackluster profitability. Its silicon carbide technology enhances EV affordability by reducing battery size and weight, and improves charging speed and efficiency, supporting broader EV adoption. The company is gaining market share in China, Europe, and North America, positioning itself for growth as the EV market recovers.
Onsemi Stock Is Down, But Not for Long – Is It Time to Buy?
The price of Onsemi NASDAQ: ON is down 40% from its high but won't be for long because end-market normalization and mounting demand for its high-power semiconductor applications will collide in 2025. While the 2024 results are lackluster, the Q3 results align with the expectation growth will resume as soon as the first quarter of F2025 and accelerate as the year progresses.
Despite ON Semi's Strong Q3 And Fair Valuation, It's Not A Buy (Rating Downgrade)
Q3 earnings showed quarter-over-quarter revenue growth of 1.5% and a $0.02 normalized EPS beat—strategic share buybacks have used 75% of ON Semi's free cash flow over the last year. Management estimates ON Semi's combined-segment total addressable market will be $44 billion by 2027, with a CAGR of 18% from 2022, enhancing its growth prospects. Given cyclical industry risks and moderate 12-month price return prospects, I rate ON Semi a Hold, anticipating larger gains in late 2025 and 2026.
ON Semiconductor: Positioned To Dominate The Silicon Carbide Market As Demand Ramps Up
ON Semiconductor's Q3 2024 revenue decreased by 19.3% year-over-year due to slowing EV demand and excess inventory. Free cash flow margins improved to 16.7%, driven by reduced capital expenditures and enhanced cost efficiency. ON continues to secure silicon carbide supply deals, including a significant contract with Volkswagen for EV traction inverters.
ON Semiconductor Q3 Earnings Beat Estimates: Will Raised View Aid Shares?
ON's third-quarter 2024 performance reflects strong demand for business segment and end-market products.
360 Round: Onsemi (ON) Earnings
CFRA's Angelo Zino maintains a Hold rating for Onsemi (ON) after earnings. Angelo says this is a company "not as exposed to A.I.
Onsemi's downbeat forecast casts doubt on auto chip recovery
Chipmaker Onsemi projected fourth-quarter revenue and profit below Wall Street estimates on Monday, citing persistent soft demand for semiconductors in the auto sector.
Onsemi Tops Q3 Estimates But Sales Continue To Slide and Its Outlook Is Soft
ON Semiconductor (ON) beat third-quarter profit and revenue estimates Monday, but sales continued to decline and the chipmaker gave weak guidance.
On Semi Stock Gains After Earnings Beat. CEO Says ‘Power Demands Continue to Rise.
The chip maker reported quarterly earnings and sales above Wall Street's estimates.
ON Set to Report Q3 Earnings: What's in Store for the Stock?
onsemi's third-quarter 2024 performance is likely to have reflected benefits from the increased adoption of its products in automobile and industrial end markets despite sluggishness.
A Few Years From Now, You'll Wish You Had Bought This Undervalued Stock
The EV market is down right now, but won't be forever. This key auto chip supplier is leading the pack.
