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ON Semiconductor Corp

ON Semiconductor Corp

ON
$87.37USD↓-0.85%-0.75 today

MARKET CAP

34.0B

P/E (TTM)

35.8x

FWD P/E

23.6x

DAY RANGE

$83 – $90

52W RANGE

$45
$135

AI Summary

Stalk
TrimMedium

ON remains caught in a Stage 4 decline with a clear sequence of lower highs and lower lows, anchoring a bearish medium-term bias. Short-term timing is neutral as price trades well below declining EMAs and despite extreme oversold conditions shows no exhaustion or reversal signals. Execution should be deferred to failed rallies into the declining 9/21 EMA resistance zone to align with the prevailing downtrend.

  • ↑Q1 2026 revenue $1.51B (+5% YoY); AI data center sales +30% QoQ.
  • ↑Gross margin reached 38.5% for third straight quarter; expects further expansion.
  • ↓GAAP operating margin –3.5% amid rising costs; profitability remains weak.
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

Onsemi (NASDAQ: ON) is a leading provider of semiconductor solutions specializing in power and sensing technologies. The company is particularly focused on automotive, industrial, and AI data center markets, which position it favorably within the expanding growth trends driven by electric vehicles (EVs) and artificial intelligence (AI) infrastructure. Notable recent developments include the acquisition of Synaptics to bolster its AI capabilities and the enhancement of its Treo intelligent sensing and networking product lines, solidifying its presence in rapid-growth segments.

Bull says

  • ↑Q1 2026 revenue $1.51B (+5% YoY); AI data center sales +30% QoQ.
  • ↑Gross margin reached 38.5% for third straight quarter; expects further expansion.
  • ↑Returned $346M via share buybacks, equating to 160% of free cash flow.
  • ↑Silicon carbide and intelligent sensing segments drive high-margin growth.
  • ↑Macro tailwinds from AI/EV investments (e.g., S Korea $1.3T chip plan).
  • ↑Healthy liquidity and positive earnings revisions support momentum-driven upside.

Bear says

  • ↓GAAP operating margin –3.5% amid rising costs; profitability remains weak.
  • ↓Negative earnings yield flags potential overvaluation if growth disappoints.
  • ↓Automotive revenue slid 4% sequentially to $733M; sector volatility risk high.
  • ↓Inventory days at 201 and supply-chain constraints may hamper operations.
  • ↓Elevated leverage and dividend cuts may deter income-focused investors.
  • ↓Limited visibility into 2026 demand poses execution and strategy risks.

Investment themes with ON

Semiconductors↑ +0.54%

Chips powering modern tech and AI growth

NVDA · TSM · AVGO
High Beta↓ -0.12%

Stocks with high volatility relative to market

AMD · DELL · MPWR

Earnings Call · Q1 2025 · Mgmt. Guidance

Updated 06-14-2026neutral

Transcript signals

Bull points

  • We exceeded the midpoint of our guidance with revenue of $1.45 billion and non-GAAP earnings per share of 55 cents, while Q1 free cash flow increased 72% year-over-year.
  • We increased our share buyback to 66% of free cash flow, repurchasing $300 billion of shares in the first quarter.
  • For 2025, we intend to increase our share repurchase to 100% of free cash flow.

Bear points

  • Automotive revenue was $762 million, which decreased 26% sequentially driven by weakness in Europe and seasonality in Asia, mainly in China, due to Chinese New Year.
  • revenue for the Power Solutions Group, or PSG, was $645 million, a decrease of 20% quarter-over-quarter and 26% year-over-year.
  • Non-GAAP gross margin was 40%, down 530 basis points sequentially and 590 basis points from a quarter a year ago.
Read full transcript analysis ›