Group 1 - The Philadelphia Semiconductor Index experienced a significant increase of over 3% in a single day [1] - Micron Technology saw a rise of more than 15% [1] - Nvidia increased by over 3% [1] - ON Semiconductor rose by over 2% [1]

Core Viewpoint - onsemi has entered a collaboration agreement with GlobalFoundries to develop and manufacture advanced gallium nitride (GaN) power devices, starting with 650V, to meet the increasing power demands in various high-growth markets [3][4][5] Group 1: Collaboration Details - The collaboration aims to combine onsemi's expertise in silicon drivers and controllers with GlobalFoundries' 200mm eMode GaN-on-silicon process to create high-performance GaN devices [3][4] - The partnership will focus on delivering optimized GaN devices for applications in AI data centers, electric vehicles, renewable energy, and aerospace, defense, and security [3][6] Group 2: Product Development and Applications - onsemi's GaN portfolio will include power supplies, DC-DC converters, onboard chargers, solar microinverters, energy storage systems, and motor drives, catering to the needs of high-density systems [6][7] - The collaboration is expected to accelerate the development of high-efficiency solutions and resilient supply chains for critical markets [5][6] Group 3: Technical Advantages - GaN technology allows for higher frequency operation, reducing component count and system size while improving efficiency and thermal performance [8] - Integrated functionality of GaN FETs with drivers and controllers in a single package enhances design cycles and reduces electromagnetic interference [9] Group 4: Timeline and Future Outlook - onsemi plans to begin sampling the new GaN devices in the first half of 2026, with a rapid scale-up to volume production anticipated thereafter [4][10]

Group 1: Semiconductor Industry Overview - The semiconductor industry is expected to benefit from recent developments, including U.S. government policies that balance trade with China while restricting access to advanced technology [3][4] - Semiconductor stocks have gained significantly from the AI boom since 2022, although they remain vulnerable to the ongoing U.S.-China AI trade tensions [5] Group 2: Investment Opportunities in Semiconductor Stocks - A screening of semiconductor companies with a market cap of at least $2 billion identified the 10 most undervalued stocks, focusing on those trading at least 25% below the NASDAQ forward P/E ratio of 26.35 [2] - ON Semiconductor Corporation (NASDAQ:ON) has a potential upside of 3.63% and is extending its partnership with FORVIA HELLA to enhance automotive applications [6][8] - Synaptics Incorporated (NASDAQ:SYNA) shows a potential upside of 6.9%, with a strong growth outlook driven by its Core IoT portfolio, which grew 74% YoY [11][13] - Qualcomm Inc. (NASDAQ:QCOM) has a potential upside of 8.39% and is expanding into the data center market following its acquisition of Alphawave Semi [16][18] - Skyworks Solutions, Inc. (NASDAQ:SWKS) has a potential upside of 9.89%, but faces regulatory risks due to its merger with Qorvo [20][22] - NXP Semiconductors NV (NASDAQ:NXPI) has a potential upside of 15.33% despite plans to exit the radio power market due to lack of ROI [24][25] - Cirrus Logic Inc (NASDAQ:CRUS) has a potential upside of 19.66% as it expands into the automotive market with new product launches [26][27] - Micron Technology Inc. (NASDAQ:MU) has a significant potential upside of 20.42%, with analysts predicting strong demand for DRAM and NAND products [30] - ASE Technology Holding Co. (NYSE:ASX) reported stable revenue growth, with a potential upside of 20.85% [32][34] - Photronics Inc. (NASDAQ:PLAB) has a potential upside of 26.6% following strong earnings and analyst upgrades [36] - Silicon Motion Technology Corp. (NASDAQ:SIMO) has a potential upside of 41.89%, driven by its new power-efficient SSD controller [37]

Core Viewpoint - High-rolling investors are taking a bearish position on ON Semiconductor, indicating potential privileged information influencing their trading decisions [1] Options Activity - The sentiment among major traders is predominantly bearish, with 94% of options identified being bearish and only 0% bullish [2] - A total of 19 options trades were detected, including one put worth $29,000 and 18 calls totaling $720,645 [2] Price Target - Major market movers are focusing on a price range between $25.0 and $55.0 for ON Semiconductor over the past three months [3] Volume & Open Interest Trends - Analyzing volume and open interest provides insights into the liquidity and interest in ON Semiconductor's options, particularly within the $25.0 to $55.0 strike price range over the last 30 days [4] Significant Options Trades - Recent significant options trades include multiple bearish call trades with varying strike prices and total trade prices, indicating a cautious outlook among traders [8] Company Overview - ON Semiconductor is a leading supplier of power semiconductors and sensors, primarily serving the automotive and industrial markets, and is the second-largest power chipmaker globally [10] - The company is transitioning to focus on emerging applications such as electric vehicles, autonomous vehicles, industrial automation, and renewable energy [10] Market Standing - Analysts have set an average price target of $56.0 for ON Semiconductor, with a consistent Equal-Weight rating from Morgan Stanley [12][13] - Current trading volume stands at 967,318, with the stock price at $54.34, reflecting a slight decrease of -0.41% [15]

Core Viewpoint - The article presents a perspective on stock investments, emphasizing the importance of unique insights and knowledge in identifying potential opportunities and risks in the market [1]. Company Analysis - The analyst holds a beneficial long position in ON shares, indicating confidence in the company's future performance [2]. - The article is based on the author's personal opinions and does not involve compensation from any company mentioned, ensuring an unbiased viewpoint [2]. Industry Insights - The analysis serves as an informational resource, highlighting the necessity for investors to conduct thorough personal research and due diligence before making investment decisions [3]. - The article underscores that past performance does not guarantee future results, which is a critical consideration for investors in the stock market [4].

Investment Rating - The report maintains a positive stance on the analog semiconductor sector, indicating a recovery in the automotive semiconductors market [2][7]. Core Insights - The automotive semiconductor market is projected to experience a revenue decline of -5% YoY in 2025E, an improvement from the previous estimate of -7% YoY, with a subsequent growth of +11.6% in 2026E [4][23]. - Analog revenue growth has returned to positive levels, with Q3'25 showing a 5% YoY increase, and expectations for Q4'25 to grow by 11% YoY [3][4]. - AI is emerging as a growth driver, contributing 5-10% of revenues, with significant increases in AI-related revenues anticipated for major players [5]. Summary by Sections Automotive Semiconductors - The automotive semiconductor revenue is expected to decline by -5% YoY in 2025E, improved from -7% previously, and is projected to grow by +11.6% in 2026E [4][23]. - China’s automotive semiconductor demand is forecasted to grow by 9% YoY in 2025E, down from 21% in 2024, indicating a normalization trend [6][28]. Analog Semiconductors - Analog revenue growth has shown positive momentum, with Q3'25 revenue up 5% YoY, and projections for Q4'25 to grow by 11% YoY [3][4]. - Industrial revenues are expected to grow by 10.8% YoY in 2025E, with a forecast of +14.5% YoY for 2026E [4]. AI and Growth Drivers - AI is becoming a significant growth driver, with major companies like Infineon and TI reporting substantial increases in AI-related revenues [5]. - Infineon anticipates AI revenue to rise from $860 million in FY'25E to $1.7 billion in FY'26E [5]. Regional Insights - The report indicates that while China’s growth is moderating, it remains a key market, with expectations of 6% growth in 2026E compared to 8% for non-China regions [6][28]. - Year-to-date, China’s car volumes grew 13% YoY, with NEV (New Energy Vehicle) volumes up 31% YoY [6]. Sector Preferences - The report highlights a preference for analog semiconductors, which are currently trading at approximately 20x P/E for 2026E, compared to a 10-year average of 19x [7]. - Preferred stocks include TI, IFX, and Renesas, while ON and Melexis are rated Neutral [7].

Core Viewpoint - Nasdaq announced changes to the Nasdaq-100 index, with six companies being added and six companies being removed, effective December 22 [1] Group 1: Companies Added - The following six companies will be added to the Nasdaq-100 index: - Enliven Therapeutics - Ferrovia Group - Insmed - Monolithic Power Systems - Seagate Technology Holdings - Western Digital [1] Group 2: Companies Removed - The following six companies will be removed from the Nasdaq-100 index: - Biogen - CDW - GlobalFoundries - Lululemon Athletica - ON Semiconductor - The Trade Desk [1]

Core Insights - ON Semiconductor has transformed into a focused power and sensing company, emphasizing silicon carbide and high-voltage power devices, aligning with sectors like EV powertrains and industrial automation [1] Company Positioning - ON Semiconductor occupies a unique position between large competitors like STMicroelectronics and Infineon and smaller players like Wolfspeed, benefiting from U.S.-based manufacturing and vertical integration in silicon carbide [3] Strategic Advantages - The U.S.-based manufacturing footprint provides ON with a strategic edge as supply chain security becomes a priority for governments and OEMs, aligning with EV policies and CHIPS Act incentives [4] - Onshoring reduces geopolitical risks for customers and enhances long-term supply assurance, which in turn strengthens ON's pricing power and OEM relationships [7] Financial Outlook - With a market cap of approximately $22.5 billion, ON is projecting revenues of $6.3 billion in 2026 and $7 billion in 2027, alongside $2.9 billion in cash and $800 million in debt [8] - The company has authorized $6 billion for buybacks, suggesting an effective enterprise value of around $13 billion by the end of 2027 [8] - ON is trading at nearly 2x 2027 price-to-sales after buybacks, with a forward P/E of about 20x, expected to drop to roughly 13x by 2027, indicating potential for multiple expansion through execution [8]

Core Viewpoint - Ansemic has announced a deepened long-term strategic partnership with Freya Hela to implement Ansemic's Power Trench T10 MOSFET technology across its advanced automotive platform, aiming to provide more efficient and cost-effective solutions for various automotive applications in response to the growing electrical demands driven by trends in autonomous driving, vehicle safety, and electrification [1] Group 1 - The partnership focuses on enhancing efficiency and cost-effectiveness in automotive applications [1] - The collaboration addresses increasing electrical demands due to trends in autonomous driving, vehicle safety, and electrification [1]

Core Insights - On Semiconductor Company (ON) is a key player in the AI revolution, developing essential power systems and technologies that support various applications, including electric vehicles and AI data centers [1][2] - The company reported a strong third quarter with $1.55 billion in revenue, marking a 6% increase from the previous quarter and a 38% adjusted gross margin [2] - ON's AI revenue is growing rapidly, nearly doubling year over year, and is projected to reach almost $250 million by 2025 [2] Group 1: Technology and Innovations - ON Semiconductor's Treo platform is expanding into automotive, industrial, and AI infrastructure, with a design funnel exceeding $1 billion [3] - The newly announced vertical GaN (vGaN) technology is expected to be a significant growth driver, offering greater operating voltages, faster switching, and up to a 50% reduction in energy loss [5] - Management claims that vGaN technology is well-suited for AI data centers, electric vehicles, renewable energy, aerospace, and defense [5] Group 2: Market Position and Growth - The company is experiencing stabilization in automotive and industrial markets, indicating a solid foundation for future growth [2] - Teledyne Technologies has selected the Treo platform for next-generation infrared imaging systems, highlighting ON's competitive edge in key verticals [4] - The company is already sampling its technologies with key automotive and AI customers, positioning itself as an early mover in the growing AI infrastructure market [5]