Wall Street's Attitude Toward ON Semiconductor: Bullish or Bearish?
In the tech industry, ON Semiconductor Corporation's stock performance has been a topic of interest. Based on the latest available data as of early August 2025, the company's outlook is cautiously optimistic.
ON Semiconductor Corporation, a Scottsdale, Arizona-based equipment manufacturer of a broad range of discrete & embedded semiconductor components, recently reported Q2 2025 results. The company posted a revenue of $1.47 billion, with GAAP diluted EPS of $0.41 and a non-GAAP EPS of $0.53. Their gross margin was 37.6% with an operating margin of 13.2%, showing moderate profitability.
For Q3 2025, ON Semiconductor projects revenue between $1.465 billion and $1.565 billion and a non-GAAP diluted EPS ranging from $0.54 to $0.64, indicating expected growth in earnings per share.
Financially, ON Semiconductor's trailing twelve months (TTM) revenue stands at $6.40 billion with net income of approximately $465.8 million and an EPS of $1.09. The company has a price-to-earnings (PE) ratio of 43.85, which adjusts to a forward PE of 18.91, suggesting that analysts anticipate improved earnings in the future.
However, the stock price has experienced notable volatility. ON's stock price plummeted 8.4% in a single trading session after the release of its Q1 results on May 5. More recently, on August 4, 2025, the stock dropped by about 15.6%, falling from $56.82 to $47.97.
Despite this short-term dip, analysts maintain a "Buy" rating with an average 12-month price target around $57.65, which suggests roughly 20% upside potential from the current price level. Short-term forecasts indicate a potential price increase up to approximately $87.92 to $100.16 in the next three months, reflecting strong expected upside.
Segment-wise, the Power Solutions Group showed a sequential revenue growth of 8% in Q2 2025, while the Analog and Mixed-Signal Group and the Intelligent Sensing Group saw declines of 2% and 8%, respectively. Year-over-year, all segments saw declines of 14-16%, reflecting possible market challenges.
Overall, analysts consensus is positive, viewing ON Semiconductor as a buy with expected growth in revenue and earnings in the near term, despite recent stock price volatility. The company remains financially solid with a market cap near $20 billion and operational cash flow generation.
It's important to note that ON has a mixed earnings surprise history, surpassing the Street's bottom-line estimates thrice over the past four quarters, while missing the projections on one other occasion. ON's mean price target of $57.52 suggests a modest 2.1% upside from current price levels, while the Street-high target of $75 represents a notable 33.1% premium.
For more information, please view the Disclosure Policy here. Aditya Sarawgi does not have positions in any of the securities mentioned in this article.
[1]: Source: Yahoo Finance [2]: Source: ON Semiconductor Corporation's Q2 2025 Earnings Release [3]: Source: Stifel Research Report on ON Semiconductor Corporation dated August 6, 2025
Investors anticipate potential growth in ON Semiconductor Corporation, as the company's Q3 2025 projected earnings per share show expected growth. In the stock-market, ON's stock performance, despite temporary drops, remains a topic of interest for those finance-wise investors seeking solid long-term investments.
