Core Thesis - ON Semiconductor Corporation is positioned as a differentiated semiconductor leader focusing on gallium nitride (GaN) and silicon carbide (SiC) technologies, which are critical for various high-efficiency systems [2][3] Financial Performance - As of February 25th, ON's share was trading at $69.68, with trailing and forward P/E ratios of 46.42 and 17.01, respectively [1] - The company has demonstrated financial resilience despite cyclical softness in 2025, with a capital allocation policy returning 100% of free cash flow to shareholders through buybacks in 2025 [4][5] Market Opportunities - ON is exposed to a $15.5 billion electric vehicle (EV) opportunity growing at 25% annually, a $9.1 billion factory automation market expanding at 8%, and a $7.8 billion energy infrastructure segment growing at 18% [4] - The total addressable market for ON is approximately $44 billion, growing at 18% annually, driven by advanced driver-assistance systems, AI data centers, and EV charging infrastructure [4] Technology Leadership - ON's leadership in SiC and sensing solutions positions the company well for significant multiple expansion and earnings growth over the next five years as macro headwinds ease [5] - The adoption of SiC technology is accelerating in advanced image sensors, robotics, medical imaging, smart grids, and next-generation power systems, with AI-driven demand further enhancing growth [3]