ON Semiconductor Corporation (ON)

UBS maintained a "Neutral" recommendation for ON Semiconductor but raised its price target from $50 to $55, contributing to a stock increase due to expectations for Q3 results and AI industry demand. Onsemi completed the acquisition of Vcore Power Technology from Aura Semiconductor, expected to accelerate automotive and industrial product roadmaps. ON Semiconductor's shares declined following a weak forecast from peer Texas Instruments, affecting the semiconductor sector. S&P Global reported that ON Semiconductor is navigating a cyclical downturn, with revenue and net income declines forecasted for 2025 but a rebound anticipated for 2026. The broader semiconductor market experienced gains in September, contributing to positive momentum entering Q4 2025, partly due to external developments and U.S. government policies. SEMI's Q1 2025 report indicated typical seasonal patterns but warned of potential atypical shifts due to tariff threats and evolving supply chains, while demand for AI and data center technologies remained robust. General market sentiment in the semiconductor industry was positive due to growing interest in AI and data center technologies.

The semiconductor industry typically experiences seasonal and cyclical demand patterns, with stronger sales in the fourth quarter and weaker sales during the summer months. The first quarter is often a slack season, while the third quarter tends to be a peak season. However, in 2025, the industry is expected to experience atypical seasonality due to factors such as tariff threats and evolving supply chain strategies. While demand for AI and data center technologies remains positive, other segments may see delayed investment or demand shifts. ON Semiconductor's Q3 2025 results showed stable sequential revenue but a year-over-year decline, with both automotive and industrial sales experiencing downturns, indicating a current slowdown in demand within its key markets.

ON Semiconductor Corp., branded as onsemi, is a global supplier of semiconductor-based solutions, specializing in intelligent power and sensing technologies. The company designs, manufactures, and supplies semiconductor products and solutions, including analog, discrete, Silicon Carbide (SiC), MOSFETs, isolation components, power modules, memory, gate drivers, standard logic, Wide Bandgap (WBG) devices, Application-Specific Integrated Circuits (ASICs), and connectivity products. Onsemi serves the automotive, industrial, cloud power, and Internet of Things (IoT) markets, focusing on high-growth areas such as electric vehicles (EVs), advanced driver-assistance systems (ADAS), energy infrastructure, and industrial automation.

Onsemi has a global presence with design centers, solution engineering centers, manufacturing facilities, sales offices, and support locations across North America, Europe, and Asia-Pacific. Its headquarters are in Scottsdale, Arizona, and it operates global distribution centers in locations such as China, the Philippines, and Singapore.

Onsemi has a strong reputation for ethical practices and sustainability, recognized as one of the "World's Most Ethical Companies" by the Ethisphere Institute for six years up to 2022. World Finance awarded onsemi the "Most Sustainable Company" in the semiconductor industry in 2020 and 2021. In May 2024, the company's ESG risk rating was reported at 20.8%. No specific events negatively impacted ON Semiconductor's brand reputation in the past year.

ON Semiconductor Corp. has a significant institutional ownership base, with major holders including Optiver Holding B.V., Fmr Llc, Vanguard Group Inc, BlackRock, Inc., FSELX - Semiconductors Portfolio, State Street Corp, Janus Henderson Group Plc, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, and Jpmorgan Chase & Co. Institutional ownership accounts for approximately 84.09% to 88.96% of the company's shares. Tpg Advisors II Inc is the largest individual shareholder.