ON Semiconductor Corporation’s Stock Price Soars to $76.59, Marking an Impressive 4.23% Uptick

ON Semiconductor Corporation (ON)

76.59 USD +3.11 (+4.23%) Volume: 5.67M

ON Semiconductor Corporation’s stock price experienced a positive shift today, reaching 76.59 USD per share, marking a 4.23% increase this trading session. Despite a YTD decrease of 8.31%, today’s high trading volume of 5.67M indicates a strong market interest in ON’s stock.

Latest developments on ON Semiconductor Corporation

On Semiconductor (NASDAQ:ON) has experienced a rollercoaster ride in the stock market today, following a downgrade by Morgan Stanley. This comes amidst a flurry of news in the semiconductor industry, including up to $1.6 billion in federal funds allocated for R&D, the announcement of Arizona as the home of America’s semiconductor resurgence, and the Biden administration’s investment in semiconductor workforce training. Additionally, Sony and other Japan chipmakers are set to spend $30 billion in a production race, while Tower Semiconductor’s valuation suggests long-term alpha may be unlikely. With global industry announcements, workforce expansions, and technological advancements, the semiconductor sector remains volatile and full of potential.

ON Semiconductor Corporation on Smartkarma

Analysts at Baptista Research have been closely monitoring On Semiconductor, a company that reported revenue of $1.86 billion in Q1 2024. With a non-GAAP gross margin of 45.9% and non-GAAP earnings per share of $1.08, the company exceeded its guidance midpoint. The analysts attribute this success to ON Semiconductor’s innovative power and sensing technologies, which have led to a 30% increase in new design wins and growth in silicon and silicon carbide market share. Baptista Research is conducting an independent valuation of the company using a Discounted Cash Flow (DCF) methodology to assess the factors that could impact the company’s price in the near future.

In another report by Baptista Research, On Semiconductor‘s growth in the silicon carbide business has been highlighted. The company concluded the fourth quarter in 2023 with non-GAAP gross margins of 46.7%, surpassing expectations despite a decrease in utilization to 66%. This achievement reflects significant structural adjustments made by ON Semiconductor over the past three years to navigate challenging market conditions. The analysts at Baptista Research continue to track the company’s progress and evaluate its performance in the semiconductor industry.

A look at ON Semiconductor Corporation Smart Scores

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 Corporation, a supplier of analog, standard logic, and discrete semiconductors, has received a mixed bag of Smart Scores. While the company scored high in Growth and Momentum, indicating a positive long-term outlook in terms of expansion and market performance, it scored lower in Value and Dividend. This suggests that while On Semiconductor may have strong potential for growth and market momentum, investors may need to carefully consider the value and dividend aspects of the company before making investment decisions.

Despite scoring well in Growth and Momentum, On Semiconductor‘s overall outlook may be tempered by its lower scores in Value and Dividend. With a focus on analog, standard logic, and discrete semiconductors for data and power management, the company may need to address these areas to attract a wider range of investors. However, with its strong product offerings including integrated circuits and analog ICs, On Semiconductor remains well-positioned in the semiconductor market for continued growth and success in the future.

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