ON Semiconductor Corporation Stock News

On Semi's results are bottoming, and the future looks bright.

Demand for semiconductors has been bumpy recently. While names like Nvidia are benefiting from the artificial intelligence boom, chip makers focused on other sectors aren't faring as well.

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 V...

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, positio...

China is the largest electric vehicle (EV) market in the world. EVs are also called new energy vehicles (NEVs) and battery electric vehicles (BEVs).

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.

Onsemi reported better-than-expected Q3 earnings, with EPS of $0.99 and revenue of $1.76 billion, leading to a 5% stock rise. I'm upgrading the stock to a buy for mid to long-term investors due to optimism about EV demand, especially with China's recent stimulus plan, considering Onsemi's high exposure there. In my opinion, Onsemi's valuation is attractive, and the stock is cheap at current lev...

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...