• 简

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Should ON Semiconductor’s NASDAQ-100 Exit and Softer Outlook Shift the ON Investment Narrative?

    Simply Wall St·12/26/2025 02:19:27
    语音播报
    • ON Semiconductor Corporation was removed from the NASDAQ-100 Index on December 19, 2025, even as it extended its partnership with FORVIA HELLA and advanced new power device collaborations and share repurchases.
    • Despite these product and capital-allocation moves, investor attention has shifted toward expectations for lower upcoming earnings and revenue, alongside more cautious analyst estimate revisions.
    • Next, we'll examine how this cautious earnings outlook, despite expanded automotive partnerships, could influence ON Semiconductor's broader investment narrative.

    Outshine the giants: these 24 early-stage AI stocks could fund your retirement.

    ON Semiconductor Investment Narrative Recap

    To own ON Semiconductor, you need to believe its focus on intelligent power and automotive solutions can outweigh near term earnings pressure and cyclical auto and EV demand risks. The NASDAQ 100 removal and more cautious earnings expectations mostly affect sentiment and index-driven flows rather than the core thesis, while the key near term swing factor remains how quickly utilization and margins recover versus softer revenue guidance.

    The extended partnership with FORVIA HELLA, which brings ON Semiconductor’s PowerTrench T10 MOSFETs into advanced automotive platforms, directly supports its core auto and electrification catalyst by deepening content in safety and autonomous systems. Against a backdrop of softer near term estimates, this kind of design win gives investors a concrete example of how ON is trying to grow its higher value automotive footprint even as the cycle remains mixed.

    However, beneath these new automotive wins, investors should be aware of the risk that persistent underutilization and slower demand could keep margins under pressure for longer...

    Read the full narrative on ON Semiconductor (it's free!)

    ON Semiconductor's narrative projects $7.5 billion revenue and $1.9 billion earnings by 2028. This requires 5.4% yearly revenue growth and roughly a $1.4 billion earnings increase from $465.8 million today.

    Uncover how ON Semiconductor's forecasts yield a $58.70 fair value, a 7% upside to its current price.

    Exploring Other Perspectives

    ON 1-Year Stock Price Chart
    ON 1-Year Stock Price Chart

    Simply Wall St Community members have published 11 fair value estimates for ON Semiconductor, ranging from US$49.59 to US$70, highlighting how far apart individual views can be. You can compare these against the current concerns around weaker earnings expectations and margin pressure to see how different investors weigh ON’s long term automotive and power opportunities versus its more immediate business risks.

    Explore 11 other fair value estimates on ON Semiconductor - why the stock might be worth 10% less than the current price!

    Build Your Own ON Semiconductor Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    Searching For A Fresh Perspective?

    Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters:

    This article by Simply Wall St is general in nature. We provide commentary 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.