ON Semiconductor Corporation (ON)
Can ON's JFET Acquisition Change the Stock's Fate or is it a Risky Bet?
On Semiconductor is set to acquire SiC JFET tech from Qorvo for $115M, enhancing its EliteSiC portfolio to drive energy efficiency in AI data centers and emerging markets.
Can ON Semiconductor's Expanding Clientele Push the Stock Higher?
ON unveils the AI-Integrated EyeSight System to improve image clarity and overall vehicle safety.
Can On Semiconductor's Expanding Treo Platform Push the Stock Higher?
ON's Treo Platform delivers advanced power and sensing solutions, boosting efficiency, accuracy, and performance across automotive, healthcare, and data centers.
On Semiconductor initiated with a Buy at Loop Capital
Loop Capital analyst Gary Mobley initiated coverage of On Semiconductor with a Buy rating and $95 price target. The company has been a "consensus short" since late 2023 or once automotive tier-one names began bringing down days of inventory held amid a backdrop of flattening light vehicle production, the analyst tells investors in a research note. While cyclical headwinds may limit On's bounce off the bottom however, the firm believes that investors should overweight stocks with high exposure to the automotive end market and overweight in the companies exposed to the fastest growing automotive trends like powertrain electrification and AD/ADAS, Loop added.
On Semiconductor initiated with a Buy at Loop Capital
Loop Capital initiated coverage of On Semiconductor with a Buy rating and $95 price target.
Why ON Semiconductor is a strong buy despite recent market challenges
ON Semiconductor, the $31 billion chip manufacturer based in Scottsdale, Arizona, has faced significant challenges lately. Despite the broader market momentum, with the S&P 500 index climbing 29% from July 2023, ON Semi's stock has plummeted 31%, reaching $72 from its record high.
3 Reasons On Semiconductor's Supercharged Profits Are Set to Soar
On Semi's results are bottoming, and the future looks bright.
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.
