ON Semiconductor Corporation (ON) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

ON Semiconductor Corporation (ON) Technology Profile & Competitive Position

ON Semiconductor Corporation (ON) is a leading provider of intelligent power and sensing solutions, enabling electrification and energy efficiency across automotive, industrial, and cloud power markets. With a focus on analog, discrete, and integrated semiconductors, ON serves diverse end-markets globally, positioning itself in the evolving semiconductor landscape.

What Is the Investment Thesis for ON?

The company's focus on intelligent power and sensing solutions aligns with the increasing demand for energy-efficient technologies. With a P/E ratio of 44.41 and a profit margin of 9.5%, ON demonstrates solid profitability. Key growth catalysts include the expansion of its automotive and industrial segments, driven by the increasing adoption of electric vehicles and automation technologies. The company's gross margin of 37.2% indicates efficient operations. Potential risks include intense competition in the semiconductor industry and cyclical demand patterns.

Based on FMP financials and quantitative analysis

ON Key Highlights

Market capitalization of $27.3B reflects strong investor confidence in ON Semiconductor's growth prospects.

• P/E ratio of 44.41 indicates a premium valuation, reflecting expectations of future earnings growth.
• Gross margin of 37.2% demonstrates efficient cost management and pricing power.
• Profit margin of 9.5% showcases the company's ability to convert revenue into profit.
• Beta of 1.52 suggests higher volatility compared to the market, indicating potential for greater returns but also increased risk.

Who Are ON's Competitors?

ON is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are ON's Key Strengths?

Strong market position in power and sensing solutions.

• Diversified product portfolio serving multiple end-markets.
• Established relationships with key customers.
• Expertise in developing energy-efficient technologies.

What Are ON's Weaknesses?

Exposure to cyclical demand patterns in the semiconductor industry.

• Dependence on key suppliers for raw materials and components.
• Intense competition from other semiconductor companies.
• Potential disruptions from technological advancements.

What Could Drive ON Stock Higher?

Expansion of automotive electrification initiatives driving demand for ON Semiconductor's power solutions.

• Increasing adoption of industrial automation technologies boosting demand for sensing solutions.
• Potential new product launches in the automotive and industrial segments in late 2026.
• Growth in cloud computing infrastructure creating demand for power management solutions.

What Are the Key Risks for ON?

Rich valuation — a P/E of 44.41 runs well above the Technology sector’s ~32.70x, leaving little room for a miss.

• Insider selling — insiders were net sellers of roughly $8.2M recently.
• Economic slowdown impacting demand for semiconductors.
• Geopolitical tensions disrupting supply chains.
• Intense competition from other semiconductor companies.
• Rapid technological changes rendering existing products obsolete.
• Cybersecurity threats targeting semiconductor manufacturing facilities.

What Are the Growth Opportunities for ON?

• Automotive Electrification: The increasing adoption of electric vehicles (EVs) presents a significant growth opportunity for ON Semiconductor. The company's intelligent power technologies enable lighter and longer-range EVs, as well as fast-charging systems. The company's competitive advantage lies in its comprehensive portfolio of power management solutions tailored for automotive applications.
• Industrial Automation: The growing trend of industrial automation is driving demand for ON Semiconductor's sensing and power solutions. The company's products enable efficient and reliable operation of industrial equipment and systems. The company's expertise in developing robust and energy-efficient solutions gives it a competitive edge in this market.
• Cloud Power Infrastructure: The expansion of cloud computing infrastructure is creating demand for ON Semiconductor's power management solutions. The company's products enable efficient and reliable power delivery in data centers and other cloud infrastructure. The company's focus on developing high-performance and energy-efficient solutions positions it well to capitalize on this growth.
• Advanced Driver-Assistance Systems (ADAS): The increasing adoption of ADAS in vehicles presents a significant growth opportunity for ON Semiconductor. The company's image sensing and processing solutions are essential for enabling ADAS features such as lane departure warning, adaptive cruise control, and automatic emergency braking. The company's expertise in developing high-performance and reliable image sensing solutions gives it a competitive advantage in this market.
• 5G Infrastructure: The deployment of 5G infrastructure is driving demand for ON Semiconductor's RF and power management solutions. The company's products enable efficient and reliable operation of 5G base stations and other network equipment. The company's focus on developing high-performance and energy-efficient solutions positions it well to capitalize on this growth.

What Are ON's Competitive Advantages?

• Strong intellectual property portfolio in power and sensing technologies.
• Established relationships with key customers in automotive, industrial, and cloud markets.
• Expertise in developing energy-efficient and reliable solutions.
• Global manufacturing and distribution network.

What Does ON Do?

ON Semiconductor Corporation, established in 1992 and headquartered in Phoenix, Arizona, is a global provider of intelligent sensing and power solutions. The company's foundation lies in delivering energy-efficient solutions to address the growing demand for power management and sensing technologies. ON Semiconductor operates through three primary segments: the Power Solutions Group, the Advanced Solutions Group, and the Intelligent Sensing Group. These segments cater to a wide array of applications, including automotive electrification, industrial automation, and cloud power infrastructure. Its product portfolio includes analog, discrete, module, and integrated semiconductor products that perform essential functions such as power switching and conversion, signal conditioning, circuit protection, signal amplification, and voltage regulation. The company also designs and develops mixed-signal, advanced logic, application-specific standard products (ASSPs), ASICs, and radio frequency (RF) solutions. ON Semiconductor's solutions are integral to various end-markets, including automotive, industrial, communications, computing, medical, and consumer electronics. The company's strategic focus on intelligent power technologies supports the electrification of the automotive industry, enabling lighter and longer-range electric vehicles, fast-charging systems, and sustainable energy solutions. ON Semiconductor also provides foundry and design services for government customers, further diversifying its revenue streams. The company's commitment to innovation is evident in its development of CMOS image sensors, image signal processors, and single-photon detectors, including silicon photomultipliers and single-photon avalanche diode arrays.

What Products and Services Does ON Offer?

• Provides intelligent power solutions for automotive electrification.
• Offers sensing solutions for industrial automation.
• Develops power management solutions for cloud infrastructure.
• Designs and manufactures analog and mixed-signal integrated circuits.
• Produces discrete and module semiconductor products.
• Provides foundry and design services for government customers.
• Develops image sensors and image signal processors.

How Does ON Make Money?

• Sells analog, discrete, module, and integrated semiconductor products.
• Generates revenue from power solutions for automotive, industrial, and cloud markets.
• Provides foundry and design services.
• Focuses on high-growth markets like automotive electrification and industrial automation.

What Industry Does ON Operate In?

ON Semiconductor operates in the semiconductor industry, which is characterized by rapid technological advancements and intense competition. The industry is experiencing significant growth, driven by the increasing demand for semiconductors in various applications, including automotive, industrial, and consumer electronics. ON Semiconductor competes with companies like STMicroelectronics N.V. (STM), United Microelectronics Corporation (UMC), and GLOBALFOUNDRIES Inc. (GFS). ON Semiconductor's focus on intelligent power and sensing solutions positions it well to capitalize on the growing demand for energy-efficient technologies.

Who Are ON's Key Customers?

• Automotive manufacturers
• Industrial equipment manufacturers
• Cloud service providers
• Consumer electronics companies
• Government agencies

ON Semiconductor Corporation (ON) Valuation Context

Valued at $27.3B, ON is classified as a large-cap stock. Analyst price targets span from $40.00 to $150.00, with a consensus of $104.67. At the current price of $70.17, that implies approximately 49% upside potential. Relative to its peer group, ON's quantitative score of 57/100 is roughly in line with the peer average of 67/100.

ON Revenue & Earnings Trend

In Q2 FY2026, ON generated $1.60B in top-line revenue, marking a sequential increase of 6.0%. The company recorded net income of $226.8M, with diluted EPS of $0.56. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Technology. Across the four most recent quarters, ON averaged $0.39 in diluted EPS.

Company Profile

ON Semiconductor Corporation operates in the Semiconductors industry within the Technology sector. It is headquartered in Scottsdale, US. The company is led by CEO Hassane S. El-Khoury. ON has traded publicly since 2000.

Return on equity for ON Semiconductor Corporation stands at 7.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.8%, showing how much profit it generates from its asset base. ON trades at a trailing price-to-earnings ratio of 44.41, above the Technology sector average of ~32.70x. Its free cash flow yield is 3.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 4.87 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 1.5%, the inverse of the P/E and a quick read on earnings relative to price.

ON Semiconductor Corporation's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 4.60 places it in the safe zone, indicating low near-term bankruptcy risk.

ON Semiconductor Corporation has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 3.3% above estimates on average.

Over the past six months, ON Semiconductor Corporation insiders filed 12 SEC Form 4 transactions — 4 sales and 8 purchases. On net that is roughly 78K shares disposed (about $8.2M), a signal worth weighing alongside the fundamentals.

ON Financials

Next earnings report: Nov 2, 2026

ON Latest News

ON Analyst Consensus

ON MoonshotScore

Latest ON Semiconductor Corporation Analysis

ON Semiconductor Corporation Technology Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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