The most recent trading session ended with ON Semiconductor Corp. (ON) standing at $39.63, reflecting a -0.84% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.74% for the day. On the other hand, the Dow registered a gain of 0.05%, and the technology-centric Nasdaq increased by 1.26%.Shares of the semiconductor components maker witnessed a loss of 8.68% over the previous month, trailing the performance of the Computer and Technology sector wit ...

In the latest market close, ON Semiconductor Corp. (ON) reached $34.64, with a +1.14% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.13%. At the same time, the Dow lost 1.33%, and the tech-heavy Nasdaq lost 0.13%.Shares of the semiconductor components maker have depreciated by 21.41% over the course of the past month, underperforming the Computer and Technology sector's loss of 9.27% and the S&P 500's loss of 6.3%.The investment community will b ...

As part of the measures, the government will subsidize the construction of underground power transmission lines to semiconductor clusters, as well as increase the funding ratio for infrastructure in advanced industrial complexes to 50% from 30%. A total of 20 trillion won of low-interest loans to semiconductor companies will be offered between 2025 and 2027, up from the current 17 trillion won. Visitors look at the display of SK Hynix Inc. 12-layer HBM3E memory chips at the Semiconductor Exhibition (SEDEX) ...

Group 1 - The U.S. plans to impose specific tariffs on imported semiconductors and chips, with rates to be announced within the week [1] - The objective of the tariffs is to simplify trade in the semiconductor sector and encourage domestic production [2] - In January, the U.S. had a negative trade balance in the semiconductor sector of $322 million, with exports of $521 million and imports of $843 million [4] Group 2 - The U.S. government is not planning to exempt electronics from China from existing tariffs, which remain at 20%, while reciprocal tariffs from China have increased to 145% [6] - The U.S. is considering additional specific tariffs on drugs and pharmaceuticals to promote domestic production and reduce reliance on foreign suppliers [7] - The administration emphasizes the need to manufacture products domestically to avoid being dependent on hostile trading nations like China [8]

ON Semiconductor (ON) shares have lost 43% in the past 6 months, underperforming the Zacks Computer & Technology sector’s decline of 5.9% and the Semiconductor - Analog and Mixed industry’s fall of 24%.ON has underperformed industry peers, including Magnachip Semiconductor (MX) , NXP Semiconductors (NXPI) and Analog Devices (ADI) . Over the same time frame, shares of Magnachip Semiconductor, NXP Semiconductors and Analog Devices have lost 24.5%, 20.4% and 14.4%, respectively.The decline in ON Semiconductor' ...

ON Semiconductor (NASDAQ: ON ) revenue has declined 36% since its previous peak of the last semiconductor cycle. The stock has also declined more than 60% as a result. While investors need to be cautious of macroeconomic and geopoliticalDr. Omer Cheema is a semiconductor industry executive with 20+ years of experience spanning engineering, strategy, marketing and general management roles. He is currently a Senior Director at Renesas Electronics, where he manages Analog and Connectivity related product lines ...

Core Viewpoint - ON Semiconductor has underperformed in the market, with a 28.5% decline year-to-date, compared to a 5.5% drop in the Zacks Computer & Technology sector and a 3.9% decline in the Semiconductor - Analog and Mixed industry [1][2]. Group 1: Performance and Market Position - The company has faced declining demand across key end markets and ongoing inventory digestion, contributing to its underperformance relative to peers like NXP Semiconductors, which has seen a 1.7% return in the same period [1][2]. - ON Semiconductor's shares are currently overvalued, indicated by a Value Score of D, and are trading below both the 50-day and 200-day moving averages, suggesting a bearish trend [12][13]. Group 2: Growth Prospects - Despite current challenges, ON Semiconductor's growth prospects are bolstered by strong demand for silicon carbide (SiC) technology, particularly in utility-scale solar and electric vehicles (EVs) in China, as well as intelligent sensing solutions for AI data centers [4][6]. - The company reported a 22% sequential increase in SiC revenues in Q4 2024, and its recent $115 million acquisition of Qorvo's Silicon Carbide Junction Field Effect Transistor business is expected to enhance its position in the SiC market [4][5]. Group 3: Acquisitions and Market Strategy - ON Semiconductor is pursuing strategic acquisitions to strengthen its market position, including a planned acquisition of Allegro MicroSystems for $6.9 billion, which aims to combine automotive and industrial power solutions with sensing expertise [7][8]. - The company is targeting a total addressable market worth $1.3 billion in EV battery disconnects and solid-state circuit breakers, with a projected revenue CAGR of 30% through 2030 [6]. Group 4: Financial Outlook - For Q1 2025, ON Semiconductor anticipates non-GAAP earnings between 45 cents and 55 cents per share, with a consensus estimate of 51 cents, reflecting a 52.78% decline from the previous year [9][10]. - Revenue expectations for Q1 2025 are between $1.35 billion and $1.45 billion, with a consensus of $1.41 billion, indicating a 24.54% decline year-over-year [10]. Group 5: Market Challenges - The company is facing subdued overall demand due to ongoing inventory digestion and slow end-market demand, which is expected to negatively impact top-line growth [9][10]. - Geopolitical uncertainties and tariff impacts are anticipated to further hinder near-term prospects, with Japan sales experiencing a sharp decline and challenges in the Chinese market affecting EV deliveries [16][17].

Group 1: Stock Performance - ON Semiconductor Corp. ended the latest trading session at $42.15, reflecting a -1.63% adjustment from the previous day's close, which lagged behind the S&P 500's daily loss of 0.91% [1] - The stock has experienced a decline of 14.4% over the past month, underperforming the Computer and Technology sector's loss of 10.57% and the S&P 500's loss of 7.38% [1] Group 2: Earnings Expectations - Analysts expect ON Semiconductor Corp. to report earnings of $0.51 per share in the upcoming release, indicating a year-over-year decline of 52.78% [2] - The consensus estimate anticipates revenue of $1.41 billion, representing a 24.54% decrease from the same quarter last year [2] Group 3: Full Year Projections - For the full year, Zacks Consensus Estimates project earnings of $2.49 per share and revenue of $6.07 billion, reflecting changes of -37.44% and -14.3%, respectively, from the prior year [3] Group 4: Analyst Estimates and Rankings - Recent changes to analyst estimates for ON Semiconductor Corp. indicate short-term business trends, with positive revisions suggesting optimism about the company's outlook [4] - The Zacks Rank system currently assigns ON Semiconductor Corp. a rank of 5 (Strong Sell), with the consensus EPS estimate having decreased by 18.12% over the last 30 days [6] Group 5: Valuation Metrics - ON Semiconductor Corp. has a Forward P/E ratio of 17.23, which is lower than the industry average of 30.9, indicating that the company is trading at a discount compared to its peers [7] - The company holds a PEG ratio of 13.46, significantly higher than the industry average PEG ratio of 1.95, suggesting a disparity in expected earnings growth [8] Group 6: Industry Context - The Semiconductor - Analog and Mixed industry, part of the Computer and Technology sector, currently holds a Zacks Industry Rank of 205, placing it in the bottom 19% of over 250 industries [8]

Group 1 - Investors in ON Semiconductor Corporation (ON) should monitor the stock due to significant activity in the options market, particularly the March 21, 2025 $30 Call, which has high implied volatility [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant price change or an upcoming event that could lead to a major rally or sell-off [2] - Currently, ON Semiconductor holds a Zacks Rank 5 (Strong Sell) in the Semiconductor - Analog and Mixed industry, which is in the bottom 20% of the Zacks Industry Rank, with no analysts increasing earnings estimates and 12 analysts reducing them, leading to a drop in the consensus estimate from 95 cents to 51 cents per share [3] Group 2 - The high implied volatility for ON Semiconductor may indicate a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to capture decay, hoping the stock does not move as much as expected by expiration [4]

I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.Analyst’s Disclosure: I/we have a beneficial long position in the shares of ON, MU either through stock ownership, options, or other derivatives. I wrote this article my ...