On Semiconductor or Onsemi (ON) surged to the top of the S&P 500 leaderboard after its CEO expressed confidence in the company’s turnaround. The positive outlook comes as investors become more hopeful that the worst is over for the chip maker, boosting interest in its stock.
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ON Stock Extends Rally With Third Consecutive Gain
Following CEO Hassane El-Khoury’s encouraging comments earlier this week, ON stock gained over 6% on Wednesday, marking the third consecutive day of growth.
Speaking at BofA Securities’ 2025 Global Technology Conference on Tuesday, El-Khoury shared an optimistic outlook for Onsemi. He noted early signs of recovery in the company’s industrial segment, their second-largest market. He further projected that automotive demand will likely hit its low point in Q2 before rebounding later in the year. Moreover, El-Khoury highlighted that Onsemi is well-positioned to benefit from the recovery, especially due to its strong presence in China’s electric vehicle chip market.
Top Analyst Reaffirms Buy Rating
Amid the renewed optimism around ON stock, five-star-rated analyst Vivek Arya at Bank of America reiterated his Buy rating, predicting over 9% growth over current levels.
Arya is optimistic about a recovery cycle, especially in the auto sector, which makes up a large part of the company’s sales. He also highlighted that the company is poised to gain from higher utilization rates, which may boost gross margins. Its strategic efforts to optimize manufacturing and a strong foothold in the SiC and ADAS markets reinforce the positive outlook. Moreover, ON’s effective cost management and growing market share in critical segments set the stage for future growth.
Is ON Semiconductor Stock a Good Buy?
Overall, Wall Street has a Moderate Buy rating on ON stock, based on 11 Buys and 13 Holds assigned in the last three months. The average ON Semiconductor share price target is $46.33, which implies a downside of 8% from the current levels.
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