Core Insights - ON Semiconductor Corporation is recognized as one of the 10 most undervalued semiconductor stocks to invest in [1] - The company has extended its strategic partnership with automotive supplier FORVIA HELLA to incorporate its PowerTrench T10 MOSFET technology into advanced automotive platforms [1] Group 1: Partnership and Technology - The collaboration aims to address the increasing electrical demands of autonomous driving, safety systems, and electrification by leveraging FORVIA HELLA's automotive expertise and ON Semiconductor's intelligent power solutions [3] - FORVIA HELLA's Executive Vice President of Purchasing, Sven Hoenecke, emphasized that ON Semiconductor's next-generation MOSFETs are crucial for their advanced automotive platforms, providing future-proof solutions with enhanced efficiency and reliability [3] - The extended agreement reinforces a 25-year partnership between ON Semiconductor and FORVIA HELLA [3] Group 2: Product Features - ON Semiconductor's T10 power MOSFETs are designed to reduce system-level costs while increasing efficiency and power density for automotive applications [2] - These MOSFETs are produced at ON Semiconductor's facility in East Fishkill, New York, and feature ultra-low conduction and switching losses, delivering higher density in a compact design [2] - The technology reduces drain-to-source resistance and gate charge, which in turn lowers output capacitance [2] Group 3: Company Overview - ON Semiconductor Corporation provides intelligent sensing and power solutions and operates through three segments: Analog and Mixed-Signal Group, Power Solutions Group, and Intelligent Sensing Group [4] - The company is headquartered in Scottsdale, Arizona [4]

Core Insights - ON Semiconductor Corporation is identified as one of the top semiconductor stocks to consider for investment leading into 2026, with a price target increase from $55 to $56 by Morgan Stanley while maintaining an "Equal Weight" rating [1][2] Financial Performance - The company's revenue for the quarters ending October 3, 2025, and September 27, 2024, was reported at $1.5 billion and $1.76 billion respectively, indicating a 12% year-over-year decline, with revenue from PSG decreasing approximately 11% year-over-year [4] - The diluted EPS for Q3 2025 was $0.63, an increase from $0.41 in Q2 FY 2025, reflecting signs of stabilization in core markets and positive growth in AI [5] Asset Management - ON Semiconductor's management has approved the recognition of additional pre-tax non-cash impairment and accelerated depreciation charges ranging from $200 million to $300 million, primarily related to long-lived assets in manufacturing facilities [2] - These charges are expected to reduce the company's recurring depreciation expense by an estimated $10 million to $15 million in 2026, likely linked to its Silicon Carbide manufacturing assets [3]

Core Insights - FSLR presents a lower valuation (P/OpInc) compared to ON Semiconductor, yet shows superior revenue and operating income growth, suggesting FSLR may be a more attractive investment option than ON [2] - The Trefis High Quality Portfolio aims to minimize stock-specific risk while providing growth potential, having consistently outperformed the S&P and achieved over 91% returns since its inception [4][6] Key Metrics Comparison - ON Semiconductor specializes in intelligent sensing and power solutions for automotive electrification, rapid-charging systems, and sustainable energy solutions across various applications [3] - A year-over-year analysis of ON Semiconductor's metrics may indicate whether the current stock price discrepancy is temporary or if ongoing underperformance suggests overvaluation [5][6] Investment Strategy - The Trefis High Quality Portfolio transforms stock-picking unpredictability into consistent market-beating results, providing a diversified strategy that may be more beneficial than investing in a single stock [2][4]