On Semiconductor (ON) stock price is $73.12, up 1.53% on the day, as of Oct 19, 2026. It has a market cap of $28.62Bn and a P/E ratio of 45.41, and is classified in the Semiconductor Manufacturing industry (Technology sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap28.62 Bn
P/E45.41
P/S4.62
Div. Yield0.00
Total Debt (Qtr)4.46 Bn
Revenue Growth (1y) (Qtr)9.18
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About
On Semiconductor Corporation offers intelligent power and intelligent sensing solutions that drive electrification energy efficiency safety and automation in automotive industrial and other end markets including AI data center.
On Semiconductor Corporation generates revenue primarily from the sale of semiconductor products to distributors and direct customers with a smaller portion coming from product development agreements.
On Semiconductor Corporation operates through…
On Semiconductor Corporation offers intelligent power and intelligent sensing solutions that drive electrification energy efficiency safety and automation in automotive industrial and other end markets including AI data center.
On Semiconductor Corporation generates revenue primarily from the sale of semiconductor products to distributors and direct customers with a smaller portion coming from product development agreements.
On Semiconductor Corporation operates through the following segments: the Power Solutions Group (PSG) the Analog and Mixed-Signal Group (AMG) and the Intelligent Sensing Group (ISG).
Power Solutions Group (PSG) provides a broad portfolio of discrete module and integrated semiconductor devices designed to enable high efficiency and high power conversion across AI data centers energy infrastructure automotive and industrial. Offerings include power switching devices signal conditioning products and circuit protection technologies that support increasing demands for performance power density and system reliability. Market demand is driven by vehicle electrification renewable energy expansion modernization of global power infrastructure and rapid scaling of AI and high performance computing systems. PSG’s silicon and WBG power technologies spanning FETs and diodes play a critical role in high power conversion for energy infrastructure energy storage AI data centers fast charging systems electric vehicles and industrial drives. Vertically integrated SiC manufacturing strategy enhances supply assurance cost competitiveness and device performance. PSG continues to advance its manufacturing footprint through network optimization initiatives that improve overall utilization and flexibility supporting long term gross margin expansion and enabling efficient scaling of differentiated high value power products.
Analog and Mixed-Signal Group (AMG) designs and develops a comprehensive range of analog and mixed signal solutions including power management sensor interface connectivity and standard products that serve automotive industrial automation AI data center computing and mobile end markets. These products include multi phase controllers gate drivers DC DC and AC DC converters power protection devices ultrasonic sensors AFEs LDOs single pair Ethernet connectivity isolation logic and more. AMG enables solutions across the power tree architectures in its target markets enabling high efficiency power management along with high performance precise sensing and robust communication interfaces for next generation system designs. AMG delivers advanced analog and mixed signal technology through our Treo Platform. The Treo Platform is a single scalable technology platform supporting a wide voltage range high temperature and an ever evolving SoC like architecture accelerating time to market. This technology platform supports intelligent power and sensing solutions used in electrified transportation factory automation and other high performance next generation applications.
Intelligent Sensing Group (ISG) develops advanced imaging technologies that include high performance CMOS image sensors ISPs SWIR sensors and more. These technologies support high dynamic range low noise and high reliability imaging essential to automotive ADAS industrial automation robotics and AI enabled perception systems. ISG continues to shift its focus to the areas of advanced imaging performance and long product lifecycles. Photon counting technologies including SPAD arrays and SiPM devices continue to play a role in emerging applications such as depth sensing factory automation safety systems and robotics.
On Semiconductor Corporation holds a strong position in the semiconductor industry leveraging its broad product portfolio advanced manufacturing capabilities and deep customer relationships. Its competitive advantages include leading edge fabrication technologies micro and module packaging expertise extensive intellectual property high quality cost effective production and a robust global supply chain. Primary competitors vary by segment: for PSG Infineon Technologies STMicroelectronics Wolfspeed Rohm Semiconductor Nexperia; for AMG Texas Instruments Analog Devices Infineon STMicroelectronics Renesas Monolithic Power Systems NXP; for ISG Sony Semiconductor Manufacturing Samsung Electronics Omnivision Technologies.
On Semiconductor Corporation sells its semiconductor products to a diverse customer base that includes original equipment manufacturers contract manufacturers and distributors serving automotive industrial AI data center computing and other end markets.
Sector:TechnologySector rationaleThe company designs and manufactures semiconductor products, including power switching devices, analog and mixed-signal solutions, and CMOS image sensors. Its revenue is derived from the sale of these electronic components to OEMs and distributors, which falls squarely within the Technology sector's semiconductor industries.Industries:Semiconductor ManufacturingSemiconductor ManufacturingPrimaryOn Semiconductor is an integrated device manufacturer that owns and operates its own fabrication plants, specifically citing a 'vertically integrated SiC manufacturing strategy' and 'leading edge fabrication technologies' to produce its power and sensing chips.Electronic ComponentsElectronic ComponentsSecondaryThe company manufactures and sells discrete electronic components, such as FETs, diodes, and circuit protection technologies, as building blocks for OEMs in the automotive and industrial sectors.Classified using BQ-MICSCIK: 0001097864
Bull & bear
Investment Thesis
▲ Bull case
Onsemi's strategic pivot toward high-margin, secular growth segments such as AI data centers and advanced silicon carbide solutions is gaining meaningful traction, with AI data center revenue nearly doubling year-over-year in Q2 and Treo platform shipments surpassing 5 million units in the first half of the year, signaling early validation of its differentiated SoC-like architecture in automotive zonal systems and industrial edge applications, which management expects to drive long-term revenue quality and margin expansion as these products scale beyond niche adoption.
The company's Fab Right initiative and manufacturing footprint rationalization are creating structural operating leverage, with non-GAAP operating expenses down $17 million sequentially despite being above guidance midpoint due to timing of restructuring benefits, and full realization expected in Q3, which combined with a reduced depreciation base from Q1 capacity impairment (~$5 million annualized benefit starting Q4) and improving utilization trends, positions onsemi to capitalize disproportionately on any demand recovery in automotive and industrial markets.
Onsemi's diversified global manufacturing footprint and flexible supply chain model are proving advantageous amid ongoing trade policy uncertainty, as evidenced by 23% sequential China revenue growth in Q2 driven by silicon carbide adoption in new EV ramps like Xiaomi's YU7 SUV, allowing the company to offset softness in North America and Europe while maintaining customer sourcing options and minimizing tariff-related disruptions, a competitive edge not uniformly shared by peers with more concentrated production footprints.
The ongoing repositioning of the Intelligent Sensing Group (ISG) toward higher-value machine vision and ADAS applications, while exiting lower-margin human vision volumes, is expected to improve revenue quality and gross margin profile over time, with Thad Trent indicating the 2026 impact of this shift is inclusive of the previously cited 5% revenue headwind from portfolio rationalization, suggesting the market may be overestimating the near-term drag while underappreciating the long-term margin accretion from focusing on differentiated sensing solutions in safety-critical automotive and industrial applications.
Management's renewed confidence in achieving the long-term 53% non-GAAP gross margin target is underpinned by multiple levers: utilization recovery (each point yielding 25-30 bps margin improvement), Fab Right initiatives (~200 bps), monetization of divested fabs, and favorable product mix shift toward high-margin silicon carbide, SiC JFETs, and intelligent power stages, with current underutilization charges of 900 bps in Q3 guidance reflecting a temporary drag that will reverse as demand normalizes, implying significant margin expansion potential beyond current guidance ranges.
Onsemi's strategic pivot toward high-margin, secular growth segments such as AI data centers and advanced silicon carbide solutions is gaining meaningful traction, with AI data center revenue nearly doubling year-over-year in Q2 and Treo platform shipments surpassing 5 million units in the first half of the year, signaling early validation of its differentiated SoC-like architecture in automotive zonal systems and industrial edge applications, which management expects to drive long-term revenue quality and margin expansion as these products scale beyond niche adoption.
The company's Fab Right initiative and manufacturing footprint rationalization are creating structural operating leverage, with non-GAAP operating expenses down $17 million sequentially despite being above guidance midpoint due to timing of restructuring benefits, and full realization expected in Q3, which combined with a reduced depreciation base from Q1 capacity impairment (~$5 million annualized benefit starting Q4) and improving utilization trends, positions onsemi to capitalize disproportionately on any demand recovery in automotive and industrial markets.
Onsemi's diversified global manufacturing footprint and flexible supply chain model are proving advantageous amid ongoing trade policy uncertainty, as evidenced by 23% sequential China revenue growth in Q2 driven by silicon carbide adoption in new EV ramps like Xiaomi's YU7 SUV, allowing the company to offset softness in North America and Europe while maintaining customer sourcing options and minimizing tariff-related disruptions, a competitive edge not uniformly shared by peers with more concentrated production footprints.
The ongoing repositioning of the Intelligent Sensing Group (ISG) toward higher-value machine vision and ADAS applications, while exiting lower-margin human vision volumes, is expected to improve revenue quality and gross margin profile over time, with Thad Trent indicating the 2026 impact of this shift is inclusive of the previously cited 5% revenue headwind from portfolio rationalization, suggesting the market may be overestimating the near-term drag while underappreciating the long-term margin accretion from focusing on differentiated sensing solutions in safety-critical automotive and industrial applications.
Management's renewed confidence in achieving the long-term 53% non-GAAP gross margin target is underpinned by multiple levers: utilization recovery (each point yielding 25-30 bps margin improvement), Fab Right initiatives (~200 bps), monetization of divested fabs, and favorable product mix shift toward high-margin silicon carbide, SiC JFETs, and intelligent power stages, with current underutilization charges of 900 bps in Q3 guidance reflecting a temporary drag that will reverse as demand normalizes, implying significant margin expansion potential beyond current guidance ranges.
Onsemi's automotive recovery remains uneven and overly reliant on China, with Q2 automotive revenue down 4% sequentially due to weakness in North America and Europe, and CEO El-Khoury acknowledging the business is still approximately 30% below prior peak levels, raising concerns that the recovery in key Western EV markets may be slower and more protracted than anticipated, particularly if OEMs delay capital expenditures or hybridize power architectures in ways that reduce silicon carbide content per vehicle, undermining the growth thesis tied to EV adoption.
The company's exposure to traditional industrial markets presents a persistent headwind, as evidenced by only 2% sequential Q2 growth in the segment despite strength in medical and aerospace/defense, with CFO Thad Trent characterizing the core industrial business as "bouncing across the bottom" and subject to uneven recovery, suggesting that the diversification away from cyclical industrial exposure may be slower than implied by management's emphasis on AI data center and automotive growth, leaving the company vulnerable to prolonged weakness in factory automation and energy management sectors.
While AI data center revenue doubled year-over-year in Q2, it remains a small fraction of total revenue and was only highlighted as a contributor within the "Other" segment, with no standalone revenue disclosure provided, making it difficult to assess the true scale and sustainability of this growth driver, and management's reluctance to break out AI-related revenues despite repeated questioning suggests the opportunity may be earlier-stage and less material to near-term financials than implied by the strategic narrative.
The Fab Right initiative and portfolio rationalization efforts, while intended to improve long-term margins, carry execution risk, as seen in Q2 where non-GAAP operating expenses were above the midpoint of guidance due to delays in realizing full restructuring benefits, and Thad Trent's admission that full benefit recognition is expected in Q3 implies near-term profitability could be pressured if cost savings fail to materialize on schedule, particularly given the company's commitment to return 100% of free cash flow to shareholders via buybacks, which may limit financial flexibility during a potential margin recovery phase.
Onsemi's silicon carbide gross margin remains below the corporate average due to underutilization, and while management expects it to recover with volume, the business model faces increasing competitive pressure from hybrid SiC-IGBT architectures that some major customers are evaluating to reduce SiC content by up to 75% in traction inverters, a trend El-Khoury dismissed as not new but which could fundamentally alter the long-term addressable market and pricing power for pure SiC solutions if adopted at scale by key automotive OEMs.
Onsemi's automotive recovery remains uneven and overly reliant on China, with Q2 automotive revenue down 4% sequentially due to weakness in North America and Europe, and CEO El-Khoury acknowledging the business is still approximately 30% below prior peak levels, raising concerns that the recovery in key Western EV markets may be slower and more protracted than anticipated, particularly if OEMs delay capital expenditures or hybridize power architectures in ways that reduce silicon carbide content per vehicle, undermining the growth thesis tied to EV adoption.
The company's exposure to traditional industrial markets presents a persistent headwind, as evidenced by only 2% sequential Q2 growth in the segment despite strength in medical and aerospace/defense, with CFO Thad Trent characterizing the core industrial business as "bouncing across the bottom" and subject to uneven recovery, suggesting that the diversification away from cyclical industrial exposure may be slower than implied by management's emphasis on AI data center and automotive growth, leaving the company vulnerable to prolonged weakness in factory automation and energy management sectors.
While AI data center revenue doubled year-over-year in Q2, it remains a small fraction of total revenue and was only highlighted as a contributor within the "Other" segment, with no standalone revenue disclosure provided, making it difficult to assess the true scale and sustainability of this growth driver, and management's reluctance to break out AI-related revenues despite repeated questioning suggests the opportunity may be earlier-stage and less material to near-term financials than implied by the strategic narrative.
The Fab Right initiative and portfolio rationalization efforts, while intended to improve long-term margins, carry execution risk, as seen in Q2 where non-GAAP operating expenses were above the midpoint of guidance due to delays in realizing full restructuring benefits, and Thad Trent's admission that full benefit recognition is expected in Q3 implies near-term profitability could be pressured if cost savings fail to materialize on schedule, particularly given the company's commitment to return 100% of free cash flow to shareholders via buybacks, which may limit financial flexibility during a potential margin recovery phase.
Onsemi's silicon carbide gross margin remains below the corporate average due to underutilization, and while management expects it to recover with volume, the business model faces increasing competitive pressure from hybrid SiC-IGBT architectures that some major customers are evaluating to reduce SiC content by up to 75% in traction inverters, a trend El-Khoury dismissed as not new but which could fundamentally alter the long-term addressable market and pricing power for pure SiC solutions if adopted at scale by key automotive OEMs.