ON Semiconductor Corporation (ON)
71.08 USD -1.83 (-2.51%) Volume: 5.06M
ON Semiconductor Corporation’s stock price stands at 71.08 USD, suffering a slight dip of -2.51% in this trading session with a trading volume of 5.06M, reflecting a YTD percentage change of -14.90%, signaling a challenging market trend for ON.
Latest developments on ON Semiconductor Corporation
ON Semiconductor Corporation has been at the forefront of the semiconductor industry with recent developments highlighting its growing influence. From receiving a substantial $1.4M grant to enhance the semiconductor workforce in Pennsylvania to being approved by Morgan Stanley as a standout stock option, ON Semiconductor has been making waves. The global semiconductor industry is experiencing a revival, with Japan leading the charge in developing advanced microchips and China making strides towards self-sufficiency in semiconductor equipment. As the industry faces a workforce shortage and chipmakers navigate a labor crisis, ON Semiconductor’s stock price target of $86.61 with a 21.5% upside potential has investors intrigued. With options trading and market sentiment analysis in play, the race to challenge TSMC’s semiconductor dominance is heating up, and ON Semiconductor is poised to play a significant role in shaping the future of this dynamic market.
ON Semiconductor Corporation on Smartkarma
Analysts at Baptista Research have been closely monitoring On Semiconductor‘s performance, particularly focusing on the company’s financial results and strategic advancements. In their research report titled “ON Semiconductor Corporation: Can The Silicon Carbide Business Expansion Offset These Challenges? – Major Drivers”, they highlighted Onsemi’s mixed financial performance in the second quarter of 2024, attributing it to challenges in an inventory-heavy environment. Despite posting revenue of $1.74 billion, which aligned with guidance but represented a decline from the previous year, the company faced some headwinds. The non-GAAP gross margin stood at 45.3%, slightly down from previous quarters due to underutilization caused by softened demand.
Furthermore, Baptista Research also explored On Semiconductor‘s growth prospects in their report “ON Semiconductor Corporation: Adoption in Low-Cost Electric Vehicles and Broad Technology Offering! – Major Drivers”. They noted that in Q1 2024, the company reported revenue of $1.86 billion, with a non-GAAP gross margin of 45.9% and non-GAAP earnings per share exceeding expectations. This performance showcased On Semiconductor‘s ability to navigate market dynamics effectively, supported by a 30% increase in new design wins and growth in silicon and silicon carbide market share. The analysts at Baptista Research emphasized the importance of evaluating various factors that could influence the company’s stock price in the near future and conducted an independent valuation using a Discounted Cash Flow methodology.
A look at ON Semiconductor Corporation Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
On Semiconductor has a positive long-term outlook based on its Smartkarma Smart Scores. With a high score in Growth, the company is expected to experience strong expansion and development in the future. This indicates potential for increased market share and profitability. Additionally, the company scores well in Momentum and Resilience, suggesting stability and consistent performance over time. However, On Semiconductor‘s low score in Dividend may be a concern for investors looking for regular income from their investments.
Overall, On Semiconductor Corporation is positioned well for long-term success in the semiconductor industry. With a focus on data and power management, the company’s diverse product offerings cater to various market needs. While the company’s Value score is moderate, its strong scores in Growth, Resilience, and Momentum indicate a promising future. Investors may see potential for growth and stability in On Semiconductor, making it a favorable choice for those looking for opportunities in the semiconductor sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
