ON Semiconductor Corporation (ON)

The stock price of ON Semiconductor Corp. has been influenced by several events over the past six months. Shares experienced a 43% decline in the six months leading up to April 3, 2025, and as of June 24, 2025, the share price was $54.21, marking a 20.09% decrease from June 25, 2024. The stock's decline was largely attributed to weaker fourth-quarter 2024 revenues and a softer-than-expected financial outlook. Volatility in the automotive sector also contributed to the stock's underperformance. Cantor Fitzgerald initiated coverage with a "Neutral" recommendation, while Mizuho raised its price target to $72.00. ON Semiconductor completed the acquisition of the Silicon Carbide Junction Field-Effect Transistor technology business from Qorvo US, Inc. but terminated its proposal to acquire Allegro MicroSystems. Executives indicated an expected recovery in the automotive sector in the latter half of 2025.

The semiconductor industry typically experiences seasonal demand patterns, with the first quarter of the year usually seeing a decline in sales. In Q1 2024, the consumer segment experienced the most significant decline, while the industrial segment saw a decrease due to inventory adjustments. The automotive segment also recorded a decline in Q1 2024, after a prolonged period of growth. Conversely, demand for AI and data center technologies remains robust. ON Semiconductor's CEO has indicated that the concept of "seasonality" is less relevant in the current market, and the company anticipates a recovery in the automotive sector during the latter half of 2025.

ON Semiconductor Corp., operating under the brand name onsemi, is a leading global supplier of semiconductor-based solutions, specializing in intelligent power and sensing technologies. The company was established in 1999 as a spin-off from Motorola's Semiconductor Components Group and is headquartered in Scottsdale, Arizona, USA. The company's offerings are categorized into three main segments: Power Solutions Group (PSG), Analog & Mixed-Signal Group (AMG), and Intelligent Sensing Group (ISG). ON Semiconductor serves a wide array of end-user markets, including automotive, industrial, communications, computing, consumer electronics, medical, aerospace, and defense. Revenue generation is primarily driven by product sales, with a substantial portion originating from the automotive and industrial sectors.

ON Semiconductor maintains a broad global presence, encompassing manufacturing facilities, design centers, sales offices, and support locations across North America, Europe, and Asia-Pacific regions. The company has manufacturing sites in the USA, Canada, China, and the Czech Republic. Design operations are located in the USA, Belgium, Canada, China, India, Ireland, Israel, Japan, Korea, Philippines, Romania, Slovakia, Slovenia, Switzerland, and Taiwan. ON Semiconductor operates global distribution centers in China, the Philippines, and Singapore. The company's revenue is geographically segmented, with significant contributions from the US, Hong Kong, Singapore, and the UK.

ON Semiconductor, operating as onsemi, generally maintains a positive brand reputation due to its strong commitment to sustainability and ethical business practices. The company has set a goal to achieve net-zero emissions by 2040 and has received multiple accolades for its sustainability efforts. Its strategic shift towards high-growth applications enhances its reputation as an innovative leader, and operational optimization contributes to its image of efficiency and profitability. However, the company is currently facing a securities class action lawsuit and related derivative suits, which could potentially impact its brand reputation.

ON Semiconductor Corporation is predominantly owned by institutional investors, who hold approximately 98.86% of the company's ownership. Key institutional holders include FMR LLC, Vanguard Group Inc., and BlackRock, Inc. Insiders hold approximately 42.54% of the company, with Tpg Advisors II Inc noted as the largest individual shareholder. Retail investors hold a smaller percentage, estimated at 0.00% or 12.71%.