Core Viewpoint - The comparison between ON Semiconductor Corp. and Monolithic Power highlights ON as a more attractive option for value investors based on various financial metrics and rankings [1][3][6] Group 1: Zacks Rank and Earnings Outlook - ON Semiconductor Corp. has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to Monolithic Power, which has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank strategy focuses on companies with positive earnings estimate revisions, which is a key factor for value investors [2][3] Group 2: Valuation Metrics - ON has a forward P/E ratio of 21.69, significantly lower than Monolithic Power's forward P/E of 55.29, suggesting ON is more undervalued [5] - The PEG ratio for ON is 2.51, while Monolithic Power's PEG ratio is 2.74, indicating ON's expected earnings growth is more favorable [5] - ON's P/B ratio stands at 2.59, compared to Monolithic Power's P/B of 13.63, further supporting ON's valuation attractiveness [6] Group 3: Value Grades - ON Semiconductor Corp. has earned a Value grade of B, while Monolithic Power has received a Value grade of F, reinforcing the perception that ON is the better investment choice for value investors [6]

Company Overview - ON Semiconductor Corporation (ON) has a market cap of $20.6 billion and is headquartered in Scottsdale, Arizona, specializing in intelligent power and sensing technologies [1] - The company serves various industries, including automotive, industrial, communications, computing, consumer electronics, medical, and military/aerospace sectors [1] Earnings Expectations - Analysts expect ON to report an adjusted EPS of $0.59 for Q3 2025, a decrease of 40.4% from $0.99 in the same quarter last year [2] - For fiscal 2025, the expected adjusted EPS is $2.32, down 41.7% year-over-year from $3.98 in fiscal 2024 [3] - In fiscal 2026, the adjusted EPS is projected to increase by 31% year-over-year to $3.04 [3] Stock Performance - ON stock has declined by 29.6% over the past 52 weeks, underperforming the Technology Select Sector SPDR Fund's 27.7% surge and the S&P 500 Index's 17.2% rise during the same period [4] Recent Developments - ON announced the acquisition of Vcore Power Technologies and related IP from Aura Semiconductor on September 23, enhancing its power management portfolio for AI data centers [5] - The acquisition aims to provide comprehensive solutions from grid to core, positioning ON as a leading provider for modern AI infrastructure [5] - Following the announcement, ON shares rose by 1% in the next trading session [5] Analyst Ratings - Wall Street analysts have a "Moderate Buy" rating for ON, with 12 recommending "Strong Buy," 2 suggesting "Moderate Buy," 18 indicating "Hold," and 1 suggesting "Strong Sell" [6] - The mean price target for ON is $57.71, implying a premium of 14.6% from current price levels [6]

Core Insights - Weebit Nano Limited has successfully taped-out test chips featuring its embedded Resistive Random-Access Memory (ReRAM) module at onsemi's 300mm production fab, marking a significant milestone in the development of non-volatile memory technology [1][2]. Company Overview - Weebit Nano is a leading developer and licensor of advanced semiconductor memory technology, focusing on Resistive RAM (ReRAM) non-volatile memory (NVM) that meets the increasing demand for higher performance and lower power memory solutions across various electronic applications [3]. Technology Development - The collaboration with onsemi is advancing rapidly, with the successful tape-out indicating progress in the technology transfer of Weebit ReRAM to onsemi's advanced Bipolar-CMOS-DMOS (BCD) process [2][3]. - The ReRAM technology is designed to provide ultra-low-power, high-density NVM, which is expected to enhance the intelligence and functionality of next-generation products from onsemi [2]. Market Applications - Weebit ReRAM technology is applicable in a wide range of sectors, including AI, Internet of Things (IoT), wearable devices, automotive, industrial automation, robotics, and neuromorphic computing, offering advantages such as increased speed, cost-effectiveness, reliability, and energy efficiency compared to existing flash memory solutions [3].

Group 1 - The upcoming China International Import Expo (CIIE) is expected to attract global exhibitors, showcasing opportunities for foreign businesses in the Chinese market [1] - Various international trade fairs in China, such as the Investment Trade Fair and Service Trade Fair, highlight China's commitment to open cooperation and high-quality development [2][6] - China's open policies and favorable business environment are benefiting foreign enterprises, as emphasized by executives from companies like Austria's Zotter Chocolate [2][4] Group 2 - The significance of the Investment Trade Fair is underscored by the challenges of rising trade barriers and the need for innovative cooperation to promote sustainable global development [3][6] - China's innovation-driven development strategy is fostering new industries and business models, particularly in AI and digital transformation, creating new opportunities for global partners [4][5] - Companies like ON Semiconductor are leveraging China's large market and rapid product iteration to enhance their global competitiveness [4] Group 3 - China's commitment to promoting inclusive economic globalization and opposing protectionism is crucial for maintaining an open international market [6][8] - The establishment of free trade zones and the hosting of international trade events are part of China's strategy to enhance global service trade cooperation [6][8] - Observers note that China's support for global cooperation and technology transfer is vital for avoiding disruptive "decoupling" in international markets [7][8]

Core Insights - On Semiconductor Corporation (NASDAQ:ON) is recognized as one of the best affordable semiconductor stocks to invest in, particularly following its recent acquisition of Vcore power technologies from Aura Semiconductor [1] Group 1: Acquisition Details - The acquisition is expected to enhance On Semiconductor's power management portfolio, especially for AI data center applications [1] - The company anticipates that the acquisition will become profitable after the first fiscal year post-completion and will have minimal impact on its GAAP and non-GAAP earnings per share before that [2] - The integration aims to strengthen On Semiconductor's position in the solid-state transformer, power supply unit, and core power delivery markets, enabling improved AI infrastructure solutions with better power density, productivity, and thermal performance [2] Group 2: Company Overview - On Semiconductor Corporation is engaged in the design, production, and supply of semiconductor products and solutions, with operations divided into three segments: Power Solutions Group (PSG), Analog and Mixed-Signal Group (AMG), and Intelligent Sensing Group [3]

Group 1 - ON Semiconductor is a specialty chipmaker providing power and sensing solutions primarily to the automotive (55% of 2024 revenue), industrial (25%), and other sectors (20%) [2] - The company's product portfolio includes power semiconductors, intelligent sensors, and analog and mixed-signal integrated circuits, with significant exposure to silicon carbide (SiC) chips for electric vehicles (EVs) [2] - The company also has partnerships, such as with Nvidia, focusing on the next generation of data centers [3] Group 2 - Despite long-term growth opportunities, ON Semiconductor faces near-term risks due to a slowdown in EV investment and industrial demand, impacting sales since the end of 2023 [4] - The automotive industry is expected to see significant long-term growth in EVs, with major investments from companies like Ford [6] - ON Semiconductor's stock is trading at slightly over 14 times the Wall Street analyst consensus for free cash flow in 2025, indicating a margin of safety in its valuation [6]

Core Insights - On Semiconductor (ON) is experiencing significant growth driven by strategic acquisitions and increasing demand for AI data center solutions, with AI data center revenues more than doubling year over year in Q2 2025 [1][10] - The acquisition of Aura Semiconductor's Vcore power technologies and Qorvo's Silicon Carbide Junction Field Effect Transistor business enhances ON's power management portfolio and positions the company to meet the power requirements of AI infrastructure [2][4][10] Acquisitions and Technology - ON's acquisition of Aura Semiconductor strengthens its capabilities in providing comprehensive power solutions for AI data centers, leveraging advanced silicon carbide (SiC) technology [2][10] - The $115 million acquisition of Qorvo's SiC JFET business enhances ON's EliteSiC power portfolio, improving energy efficiency in AI data centers and supporting electric vehicle (EV) applications [4][10] Partnerships and Collaborations - ON's partnerships with major companies like NVIDIA, Schaeffler, and BorgWarner are pivotal for expanding its market reach and enhancing its silicon carbide technology offerings [5][6][8][10] - The collaboration with NVIDIA focuses on advancing 800 VDC power architectures for next-generation AI data centers, positioning both companies at the forefront of high-performance power delivery [6][10] - The expanded collaboration with Schaeffler involves the use of ON's EliteSiC MOSFETs in traction inverters for advanced plug-in hybrid electric vehicles [7][10] Financial Outlook - For Q3 2025, ON expects revenues to be between $1.465 billion and $1.565 billion, reflecting the positive impact of its expanding portfolio and strong partnerships [9][10] - Non-GAAP earnings are projected to be between 54 cents per share and 64 cents per share, indicating robust financial performance [11]

On Semiconductor Corporation (NASDAQ:ON) is among the 11 Best Semiconductor Stocks with Huge Upside Potential. On Semiconductor Corporation (NASDAQ:ON) announced $1.47 billion in revenue for the second quarter of 2025, with 37.6% GAAP and non-GAAP gross margins. The non-GAAP operating margin was 17.3%, whereas the GAAP operating margin was 13.2%. GAAP diluted EPS was $0.41, and non-GAAP EPS was $0.53. The business made $106.1 million in free cash flow and $184.3 million in operating cash flow, with share r ...

Core Insights - Ningbo Aola Semiconductor Co., Ltd. signed a multi-phase power technology licensing agreement with ON Semiconductor for a total amount of $144 million, allowing ON Semiconductor to sell Aola's products outside China while Aola retains all technology and patent ownership [1] - This agreement represents a new model of deep cooperation rather than a technology sale, with a market division established until the end of 2030, where Aola focuses on the mainland China market and ON Semiconductor on overseas markets [1] - The collaboration is seen as a pathway for Chinese companies to expand into international markets through intellectual property licensing, providing direct economic benefits and helping domestic firms accumulate international shipping records and quickly validate product performance [1] Company Developments - This is the second time Aola Semiconductor has licensed core technology to a U.S. semiconductor company in recent times, having previously reached a $270 million IP licensing agreement with SiTime for clock chips in 2023, indicating Aola's growing international competitiveness in clock and power management chip sectors [2] - Aola Semiconductor has been dedicated to the research and innovation of high-performance analog chips since its inception, with its first de-bounce clock chip successfully launched in 2018, breaking foreign monopolies and achieving large-scale applications in communication infrastructure such as 5G base stations and optical transmission network equipment [2] - The company's development reflects China's integrated circuit industry's commitment to independent innovation and active integration into the global market, with future plans to continue evolving towards becoming a platform-based analog integrated circuit design enterprise [2]

Back in May 2024 , I argued that ON Semiconductor (NASDAQ: ON ) looked overvalued given all the headwinds. It's a call that has aged well, as the stock price has dropped by 30% since then. In fact, theI am a highly experienced Chief Financial Officer (CFO) with a strong background in the oilfield and real estate industries. With over a decade of experience in finance, I have led numerous complex due diligence efforts and M&A transactions, both domestically and internationally.In recent years, I have develop ...