ON Stock Analysis — ON Semiconductor
Sector: Semiconductors
AI Verdict
ON trades at a premium to peers but the 105.6% earnings growth expectation makes it cheap for the growth on offer if its power chip moat with automakers holds up.
Competitive Moat
ON Semiconductor specializes in power management and silicon carbide chips critical for electric vehicles and industrial automation, where design wins can lock in multi-year supply deals. Its defensibility comes from deep integration with automaker platforms and a technical edge in high-efficiency power semis, making it hard for rivals to displace once designed in.
Summary
ON's silicon carbide power chips are a key enabler for next-generation EV drivetrains, making its design wins sticky.
Where It Stands
The stock is up 55.48% over the past year, trades at 32.1x next year's earnings (above the 25x sector median), and its RSI of 33.1 signals it's now oversold after a big run.
Key Metrics
- RSI: 33.1 — Near Oversold
- Trailing P/E: 66.1x
- Forward P/E: 32.1x
- PEG Ratio: 0.61
- Earnings Growth: +1.1%
- Revenue Growth: -0.1%
- Market Cap: $36.0B
- 1-Year Return: 55.48%
- 52-Week High: $134.92
- 52-Week Low: $44.56
Analyst Consensus
19 Buy · 20 Hold · 0 Sell (39 analysts)
Bull Case
With analysts projecting 105.6% EPS growth next year, you're paying 32.1x forward earnings for a company expected to more than double profits — cheap for that growth rate if it materializes.
Bear Case
If the forward P/E compresses from 32.1x to the sector median of 25x, that's a 22% downside even before considering the -9.0% revenue contraction last year.
Catalyst to Watch
Watch for new EV platform design wins or major automaker partnerships, as these can lock in multi-year revenue and validate the growth forecast.