ON Semiconductor Corporation Investment Analysis - January 2026

Company Overview

ON Semiconductor Corporation, headquartered in Scottsdale, Arizona, is a key player in the semiconductor industry and part of the broader technology sector. Established in 1992, ON Semiconductor focuses on providing intelligent sensing and power solutions across various markets, with a strong presence in regions like Hong Kong, Singapore, the United Kingdom, and the United States. The company operates through three main segments:

1. Power Solutions Group: Delivers semiconductor products for power switching and circuit protection.
2. Analog and Mixed-Signal Group: Develops analogues and power management integrated circuits (ICs) primarily for automotive and industrial applications.
3. Intelligent Sensing Group: Concentrates on image sensors and related technologies, catering to diverse end-users.

The semiconductor landscape presents promising investment opportunities, with ON Semiconductor at its helm, leveraging strong demand across its offerings. The latest market dynamics indicate a solid outlook for the company with total revenue approaching approximately $6.19 billion.

52-Week Price Performance Analysis

52-Week Price Performance Chart

The stock of ON Semiconductor has shown a volatile yet predominantly sideways trend throughout the past year, influenced by various market conditions. Currently priced at $54.15, the stock reflects a significant recovery from a low of $31.04 earlier this year, showcasing resilience amidst market challenges. However, it still trails its 52-week high of $67.00, indicating considerable room for growth.

Key Price Levels:

• Recent Price: $54.15
• 52-Week Low: $31.04
• 52-Week High: $67.00
• 50-Day Moving Average: $51.62

Technical Insights:

The recent price chart exhibits several critical patterns and price levels:

• Resistance Level: Key resistance is seen at $70.00, previously acting as a price ceiling.
• Support Level: A notable support level can be traced around $40.00, corresponding with April's trough.
• Consolidation Phase: The stock has stabilized around the $54.15 level, nearly 15.27% below the crucial resistance level at $70.
• Head and Shoulders Pattern: The ultimate peak in July followed by a sharp decline suggests the stock has transitioned from a previous bullish trend to a more cautious phase.

Overall, the current technical indicators hint at a testing phase for the ON Semiconductor stock, with the price hovering around its moving average. Investors should be vigilant for potential breakouts, particularly if buying momentum continues into the coming weeks.

Financial Performance and Metrics

ON Semiconductor showcases strong fundamentals, essential for both immediate and long-term viability within fast-paced technology markets.

• Total Revenue: Approximately $6.19 billion, reflecting robust operational capabilities.
• EBITDA: Stands at $1.86 billion, signaling substantial operational profitability.
• Shares Outstanding: Total share count amounts to 402,378,412, with approximately 40,960,444 of those shares sold short, amounting to 16.83% of the float. This high short interest may indicate bearish sentiment or investor concerns about the stock's decline potential.

Further financial context reveals a mean price target of $59.20 and a high target projection at $80.00, indicating substantial upside potential compared to the current stock price. Analyst consensus commonly recommends a "buy" stance, reflecting confidence in ON Semiconductor's growth trajectory.

Recent News and Developments

ON Semiconductor has recently engaged in pivotal initiatives that could strengthen its market position:

1. Partnership with GlobalFoundries: Announced on December 18, 2025, this collaboration aims to develop 650V gallium nitride (GaN) power devices. This strategic move is poised to enhance power systems for applications in AI data centers and electric vehicles, with samples expected by the first half of 2026.

2. Restructuring Plan: The company has initiated a restructuring strategy, resulting in a reduction of 2,400 jobs, aimed at aligning costs and offsetting revenue headwinds. This move is projected to yield annualized savings between $105 million and $115 million.

3. Share Repurchase Program: ON Semiconductor also authorized a $6 billion share repurchase program over the next three years, signaling strong management confidence in its long-term growth prospects.

Despite these endeavors, the financial performance faced hurdles in the fourth quarter, reporting earnings that missed market expectations. Adjusted earnings per share were $0.95, alongside revenue figures of $1.72 billion, falling short of projections.

Market Sentiment and Analyst Recommendations

The current market sentiment surrounding ON Semiconductor is characterized by cautious optimism:

• Analyst Consensus: An analyst rating highlights a "Hold" stance with a mean price target of $59.12.
• Projected price targets range from a low of $40.00 to a high of $80.00, signifying a spectrum of perspectives on the stock's future performance.
• There is notable confidence expressed through the average recommendation score of 2.23 (where a lower score indicates a stronger "buy" recommendation), indicating analysts' belief in the stock's potential for appreciation.

Additional Considerations:

• The high percentage of shares sold short reflects some apprehension within the investment community regarding expected declines in stock performance.
• Positive developments related to strategic partnerships and cost-saving initiatives might reinforce investor confidence as leading to growth in the semiconductor sector.

Conclusion

In summary, ON Semiconductor demonstrates a compelling investment opportunity within the semiconductor industry, highlighted by strong financial fundamentals, strategic partnerships, and a favorable long-term outlook despite recent market volatility. Retail investors should consider the opportunities alongside potential risks in this rapidly evolving sector, with a strong recommendation towards initiating or maintaining positions in ON Semiconductor stock as it adapts and evolves in response to market demands and technological advancements.