Valued at a market cap of $23.3 billion, ON Semiconductor Corporation (ON) is a Scottsdale, Arizona-based company that provides intelligent sensing and power solutions, including power management chips, analog and mixed-signal integrated circuits, image sensors, and discrete semiconductor devices.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and ON fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the semiconductor industry. The company’s core strengths lie in its vertical integration of Silicon Carbide (SiC) and its dominant global position in automotive image sensors for ADAS.
This semiconductor company is currently trading 19.7% below its 52-week high of $73.76, reached on Feb. 18. Shares of ON have gained 5.8% over the past three months, outperforming the Dow Jones Industrial Average’s ($DOWI) 2.6% drop during the same time frame.
Moreover, on a YTD basis, shares of ON are up 9.4%, compared to DOWI’s 1.3% fall. In the longer term, ON has rallied 38.2% over the past 52 weeks, considerably outpacing DOWI’s 14.4% uptick over the same time frame.
To confirm its bullish trend, ON has been trading above its 200-day moving average since late November. However, it has started trading below its 50-day moving average since early March.
On Feb. 10, shares of ON rose 3.5% following the company’s fourth-quarter earnings release. The analog chip manufacturer reported adjusted EPS of $0.64, slightly surpassing analysts’ expectations of $0.62. Revenue totaled $1.5 billion, meeting market forecasts but marking an 11.2% decline compared to the same period last year. Despite the year-over-year revenue drop, investors responded positively to the earnings beat and the company’s strong free cash flow margin of 31.7% during the quarter.
ON has outperformed its rival, Texas Instruments Incorporated (TXN), which gained 12% over the past 52 weeks. However, it has lagged TXN’s 14.5% YTD rise.
Looking at ON’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 33 analysts covering it, and the mean price target of $68.03 suggests a 14.8% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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