ON Semiconductor Corporation (ON)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
ON Semiconductor Corporation (ON) trades at $91.22 with AI Score 61/100 (Grade B+). ON Semiconductor Corporation provides intelligent sensing and power solutions globally, focusing on the automotive, industrial, and cloud power markets. Market cap: $35.50B, Sector: Technology.
Price live · AI analysis from May 10, 2026ON stock analysis for 2026: Analysts have set a consensus price target of $68.50 for ON Semiconductor Corporation, suggesting 24.9% downside from the current price of $91.22. The AI MoonshotScore is 61/100, indicating a bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
ON: the 2 perspectives are evenly split.
How is this calculated? →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?
ON Semiconductor Corporation presents a compelling investment thesis driven by its strategic positioning in high-growth markets like automotive electrification and industrial automation. 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 75.7 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. However, ON's strong market position and innovative product portfolio mitigate these risks, making it a potentially attractive investment for long-term growth.
Based on FMP financials and quantitative analysis
ON Key Highlights
- Market capitalization of $35.50B reflects strong investor confidence in ON Semiconductor's growth prospects.
- P/E ratio of 75.7 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.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| STM STMicroelectronics N.V. | $68.35 | -3.35% | $60.75B | 54 |
| UMC United Microelectronics Corporation (UMC) | $24.54 | -4.55% | $61.21B | 52 |
| GFS GLOBALFOUNDRIES Inc. | $69.84 | -9.57% | $38.32B | 71 |
| ENTG Entegris, Inc. | $146.66 | -11.22% | $22.34B | 61 |
| SSNC SS&C Technologies Holdings, Inc. | $65.52 | +2.52% | $15.78B | 59 |
| ARM Arm Holdings plc American Depositary Shares | $315.28 | -6.58% | $335.46B | 72 |
| MRVL Marvell Technology, Inc. | $245.29 | -9.84% | $214.58B | 69 |
| SLAB Silicon Laboratories Inc. | $218.22 | -0.07% | $7.20B | 69 |
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 75.7 runs well above the Technology sector’s ~38x, leaving little room for a miss.
- Insider selling — insiders were net sellers of roughly $11.1M 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 global EV market is projected to reach trillions of dollars by 2030, providing a substantial addressable market for ON Semiconductor. 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 global industrial automation market is expected to reach hundreds of billions of dollars by 2028, offering a significant growth opportunity for ON Semiconductor. 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 global cloud computing market is projected to reach trillions of dollars by 2030, providing a substantial addressable market for ON Semiconductor. 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 global ADAS market is projected to reach hundreds of billions of dollars by 2027, offering a substantial growth opportunity for ON Semiconductor. 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 global 5G infrastructure market is projected to reach hundreds of billions of dollars by 2026, providing a significant growth opportunity for ON Semiconductor. The company's focus on developing high-performance and energy-efficient solutions positions it well to capitalize on this growth.
What Opportunities Does ON Have?
- Increasing adoption of electric vehicles.
- Growing demand for industrial automation solutions.
- Expansion of cloud computing infrastructure.
- Development of advanced driver-assistance systems (ADAS).
What Threats Does ON Face?
- Economic downturns affecting demand for semiconductors.
- Geopolitical tensions disrupting supply chains.
- Rapid technological changes rendering existing products obsolete.
- Cybersecurity threats targeting semiconductor manufacturing facilities.
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. The global semiconductor market is projected to reach hundreds of billions of dollars in the coming years. 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 $35.50B, ON is classified as a large-cap stock. Relative to its peer group, ON's quantitative score of 61/100 is roughly in line with the peer average of 59/100.
ON Revenue & Earnings Trend
In Q2 2026, ON generated $1.51B in top-line revenue, marking a sequential decrease of 1.1%. The company recorded a net loss of $33.4M, with diluted EPS of $-0.08. Revenue has contracted over three consecutive quarters, which investors in this large-cap Technology stock should monitor closely. Across the four most recent quarters, ON averaged $0.35 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.
ROE 7%Key Financial Metrics
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 75.68, above the Technology sector average of ~38x. 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.
F-Score 7/9Financial Health
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 6.68 places it in the safe zone, indicating low near-term bankruptcy risk.
6/8 beatsEarnings Track Record
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 3.4% above estimates on average.
FY2026 estForward Outlook
Wall Street analysts project ON Semiconductor Corporation revenue of about $6.47B for fiscal 2026, with EPS near $3.08. The estimate reflects 22 contributing analysts.
Net sellingInsider Activity
Over the past six months, ON Semiconductor Corporation insiders filed 14 SEC Form 4 transactions — 6 sales and 8 purchases. On net that is roughly 46K shares disposed (about $11.1M), a signal worth weighing alongside the fundamentals.
ON Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- 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.
Bear Case
- 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.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
From the Earnings Call
“In the first quarter, revenue increased more than 2.5 times sequentially, and we saw broader adoption across high-volume automotive, industrial, and AI applications, with Treo design wins supporting the transition to software-defined vehicles.”
— Hassane El-Khoury, CEO
“Looking ahead, as our end markets continue to recover, we expect to deliver sequential gross and operating margin expansion throughout 2026.”
— Thad Trent, CFO
ON Q1 FY2026 earnings call transcript · 2026-05-04
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $1.51B | -$33M | -$0.08 |
| Q4 2025 | $1.53B | $182M | $0.45 |
| Q4 2025 | $1.55B | $255M | $0.63 |
| Q3 2025 | $1.47B | $170M | $0.41 |
Based on FMP financials and quantitative analysis
ON Latest News
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10 Information Technology Stocks With Whale Alerts In Today’s Session
benzinga · Jun 29, 2026
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Stocks Set to Open Higher as Tech Bounces, U.S. Jobs Data and Warsh’s Remarks Awaited
Barchart · Jun 29, 2026
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U.S. Stocks Down as AI Fears Offset Fuel-Price Relief
The Wall Street Journal · Jun 26, 2026
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Stocks to Watch Recap: Micron, Wendy’s, Apple, ON Semiconductor
The Wall Street Journal · Jun 26, 2026
ON Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ON.
Price Targets
Consensus target: $68.50
ON MoonshotScore
What does this score mean?
The MoonshotScore rates ON's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
10 Information Technology Stocks With Whale Alerts In Today’s Session
Stocks Set to Open Higher as Tech Bounces, U.S. Jobs Data and Warsh’s Remarks Awaited
U.S. Stocks Down as AI Fears Offset Fuel-Price Relief
Stocks to Watch Recap: Micron, Wendy’s, Apple, ON Semiconductor
Latest ON Semiconductor Corporation Analysis
Leadership: Hassane S. El-Khoury
President and Chief Executive Officer
Hassane S. El-Khoury serves as the President and Chief Executive Officer of ON Semiconductor Corporation. Prior to joining ON Semiconductor, El-Khoury held various leadership positions at Cypress Semiconductor, including Executive Vice President of the Programmable Systems Division. He also served as the Chief Strategy Officer, where he was responsible for corporate strategy, new product development, and strategic alliances. El-Khoury holds a Bachelor of Science degree in Electrical Engineering from Lawrence Technological University and a Master of Science degree in Engineering Management from Oakland University.
Track Record: Since becoming CEO, Hassane S. El-Khoury has focused on driving growth through strategic investments in high-growth markets such as automotive and industrial. He has overseen the expansion of the company's product portfolio and strengthened its relationships with key customers. Under his leadership, ON Semiconductor has achieved significant milestones in revenue growth and profitability, solidifying its position as a leading provider of intelligent power and sensing solutions.
ON Semiconductor Corporation Technology Stock: Key Questions Answered
What does ON Semiconductor Corporation do?
ON Semiconductor Corporation provides intelligent sensing and power solutions worldwide, focusing on the automotive, industrial, and cloud power markets. The company designs, develops, and manufactures a wide range of semiconductor products, including analog, discrete, module, and integrated circuits. These products are used in various applications, such as power management, signal conditioning, circuit protection, and image sensing. ON Semiconductor's solutions enable energy efficiency, automation, and connectivity in diverse industries, contributing to a more sustainable and connected world. The company operates through three segments: the Power Solutions Group, the Advanced Solutions Group, and the Intelligent Sensing Group.
What do analysts say about ON stock?
Analyst consensus on ON Semiconductor Corporation (ON) reflects a generally positive outlook, driven by the company's strategic positioning in high-growth markets and its strong financial performance. Key valuation metrics, such as the P/E ratio of 75.7, indicate a premium valuation, reflecting expectations of future earnings growth. Analysts highlight the company's growth potential in the automotive and industrial segments, driven by the increasing adoption of electric vehicles and automation technologies. However, they also caution about potential risks, such as intense competition and cyclical demand patterns. Overall, analysts view ON as a potentially attractive investment for long-term growth, but advise investors to carefully consider the risks and uncertainties.
What are the main risks for ON?
ON Semiconductor Corporation faces several key risks, including exposure to cyclical demand patterns in the semiconductor industry, dependence on key suppliers for raw materials and components, intense competition from other semiconductor companies, and potential disruptions from technological advancements. Economic downturns can significantly impact demand for semiconductors, affecting ON Semiconductor's revenue and profitability. Geopolitical tensions and trade disputes can disrupt supply chains, leading to increased costs and production delays. Rapid technological changes can render existing products obsolete, requiring ON Semiconductor to continuously innovate and invest in research and development. Cybersecurity threats targeting semiconductor manufacturing facilities can disrupt production and compromise sensitive data.
What are the key factors to evaluate for ON?
ON Semiconductor Corporation (ON) holds an AI score of 61/100 (moderate). P/E: 75.7x vs the S&P 500's ~20-25x. Analysts target $68.50 (-25%). Not financial advice.
How frequently does ON data refresh on this page?
ON prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven ON's recent stock price performance?
ON Semiconductor Corporation (ON) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong market position in power and sensing solutions. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider ON overvalued or undervalued right now?
ON Semiconductor Corporation (ON) trades at 75.7x earnings. Analysts target $68.50 (-25%) — downside risk seen. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying ON?
Before investing in ON Semiconductor Corporation (ON), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
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- Information is based on available data and may be subject to change.
- Investment decisions should be based on individual risk tolerance and financial goals.