ON Semiconductor Has Cratered for 3 Months: This Wall Street Pro Remains Bullish, Citing 120% Returns for Buyers
ON Semiconductor's stock has plummeted 44% over the past three months despite beating Q2 estimates. The shares are now 56% below the average analyst price target of $107. The company, which designs intelligent power and sensing chips for cars, factories, and AI server racks, has a wide analyst upside, with Susquehanna's Christopher Rolland maintaining a Street-high $150 target, implying 120% upside.
ON Semiconductor's silicon carbide content per rack is expected to jump from $15,000 to $115,000 in 800V architectures, with gross margins recovering toward 40%. While the peer group has softened, ON has fallen harder and faster. Analysts have not shown strong bullish sentiment, with 2 Strong Buy, 11 Buy, 16 Hold, and 0 Sell ratings.
Despite this, the company's operating metrics are improving, with Q2 revenue of $1.60 billion beating estimates and non-GAAP EPS of $0.74.
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