Should I Buy ON Semiconductor Stock in 2025? PH Expert Analysis
Is ON Semiconductor stock a buy right now?
ScoreON Semiconductor (ON), trading on Nasdaq at approximately $72.00 as of April 2025, stands as a pivotal supplier in the global semiconductor landscape. With a recent average trading volume of about 7.2 million shares per day, the stock attracts steady attention from institutional and retail investors alike. In recent quarters, ON Semiconductor has managed headwinds from a normalization in post-pandemic electronics demand and some cyclical softness in automotive and industrial segments. Nevertheless, the company recently secured new supply agreements with high-profile automotive manufacturers for its silicon carbide (SiC) solutions—a move that has reinforced confidence in its growth trajectory in the electric vehicle and power management spaces. Market sentiment remains constructive, buoyed by ON’s demonstrated ability to adapt its portfolio to resilient secular trends such as vehicle electrification and industrial automation. The broader technology sector context further enhances the opportunity, given global ambitions for supply chain independence and increasing demand for power-efficient chip solutions. Consensus from over 29 national and international banks currently places the target price at $94, signaling broad analyst confidence in ON Semiconductor’s ongoing transformation, durable margins, and strong sector positioning. For Philippine investors seeking exposure to advanced technology and clean mobility, ON Semiconductor merits close consideration.
- ✅Robust exposure to electric vehicle and industrial automation megatrends.
- ✅Strong SiC product adoption, driven by recent supply agreements with automakers.
- ✅Consistent revenue growth despite sector headwinds and cyclical challenges.
- ✅Healthy free cash flow supports further R&D and operational investment.
- ✅Favorable analyst coverage and longstanding track record of technology leadership.
- ❌Earnings sensitive to cyclical swings in global electronics and automotive demand.
- ❌Margin pressures may arise from aggressive sector-wide innovation and capital spending.
Score- ✅Robust exposure to electric vehicle and industrial automation megatrends.
- ✅Strong SiC product adoption, driven by recent supply agreements with automakers.
- ✅Consistent revenue growth despite sector headwinds and cyclical challenges.
- ✅Healthy free cash flow supports further R&D and operational investment.
- ✅Favorable analyst coverage and longstanding track record of technology leadership.
Is ON Semiconductor stock a buy right now?
- ✅Robust exposure to electric vehicle and industrial automation megatrends.
- ✅Strong SiC product adoption, driven by recent supply agreements with automakers.
- ✅Consistent revenue growth despite sector headwinds and cyclical challenges.
- ✅Healthy free cash flow supports further R&D and operational investment.
- ✅Favorable analyst coverage and longstanding track record of technology leadership.
- ❌Earnings sensitive to cyclical swings in global electronics and automotive demand.
- ❌Margin pressures may arise from aggressive sector-wide innovation and capital spending.
Score- ✅Robust exposure to electric vehicle and industrial automation megatrends.
- ✅Strong SiC product adoption, driven by recent supply agreements with automakers.
- ✅Consistent revenue growth despite sector headwinds and cyclical challenges.
- ✅Healthy free cash flow supports further R&D and operational investment.
- ✅Favorable analyst coverage and longstanding track record of technology leadership.
- What is ON Semiconductor?
- How much is ON Semiconductor stock?
- Our full analysis on ON Semiconductor stock
- How to buy ON Semiconductor stock in the PH?
- Our 7 tips for buying ON Semiconductor stock
- The latest news about ON Semiconductor
- FAQ
What is ON Semiconductor?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United States | U.S.-based, enabling access to advanced tech and global markets. |
| 💼 Market | NASDAQ (Ticker: ON) | Listed on NASDAQ, offering liquidity and transparency for international investors. |
| 🏛️ ISIN code | US6821891057 | Unique identifier; helpful for precise trading and research. |
| 👤 CEO | Hassane El-Khoury | CEO since 2020, driving strategic growth and transformation. |
| 🏢 Market cap | ~$32 billion USD | Large-cap status, reflecting investor confidence in future growth prospects. |
| 📈 Revenue | ~$8.3 billion (2023) | Strong sales, driven by automotive and industrial demand for semiconductors. |
| 💹 EBITDA | ~$3.2 billion (2023) | Healthy EBITDA margin, supporting continuous innovation and investment capacity. |
| 📊 P/E Ratio (Price/Earnings) | ~17 | Reasonable valuation, indicating balanced market expectations for earnings growth. |
How much is ON Semiconductor stock?
The price of ON Semiconductor stock is rising this week. As of now, the stock trades at $74.42, with a 24-hour increase of +1.25% and a solid 7-day gain of +3.88%. ON Semiconductor boasts a market capitalization of $32.1B, with an average 3-month trading volume of 6.8M shares. The stock holds a P/E ratio of 15.2, does not currently offer a dividend yield (0.00%), and has a beta of 1.8, reflecting above-average market volatility. With its dynamic movement, ON Semiconductor presents opportunities for Philippine investors seeking growth in the evolving semiconductor sector.
| Metric | Value |
|---|---|
| Current Price | $74.42 |
| 24h Change | +1.25% |
| 7-day Change | +3.88% |
| Market Cap | $32.1B |
| Average 3-Month Volume | 6.8M shares |
| P/E Ratio | 15.2 |
| Dividend Yield | 0.00% |
| Beta | 1.8 |
Our full analysis on ON Semiconductor stock
After a rigorous review of ON Semiconductor’s latest quarterly results, three-year share price trajectory, and comprehensive market and peer analyses utilizing proprietary financial models, a compelling narrative begins to emerge. Sifting through a myriad of financial metrics, technical indicators, and industry developments, we observe ON Semiconductor, ticker ON, steadily positioning itself at a fulcrum within the global power, automotive, and industrial semiconductor landscape. So, why might ON Semiconductor stock once again become a strategic entry point into the dynamic tech sector as we approach 2025?
Recent Performance and Market Context
Despite turbulence across broader technology indices, ON Semiconductor has outperformed many of its peers over the last three years. After peaking near $110 in mid-2023, ON’s shares underwent a healthy consolidation, establishing a robust new base around $65–70 as of June 2024. Year-to-date, the stock has rebounded over 20% from these lows, buoyed by a succession of positive earnings surprises and robust commentary from management on long-term demand.
Key milestones have defined ON’s recent momentum:
- Record Quarterly Earnings: In Q1 2024, ON Semiconductor reported revenues of $1.86 billion, modestly above consensus, with operating margins resilient at 27.5%.
- Upbeat Guidance: Management’s full-year forecast maintained its outlook for revenue growth in the high single digits—demonstrating confidence amid macro uncertainty.
- Strategic Partnerships: Major wins in the automotive silicon carbide (SiC) supply chain, notably with global EV manufacturers, have reinforced ON’s foothold in next-generation vehicle electrification.
Macroeconomically, ON is capitalizing on two accelerating trends highly relevant to the PH market and global investors: automotive electrification and industrial automation. Semiconductor demand remains robust, especially from the automotive power management segment—energy transition themes that Southeast Asia continues to prioritize.
Technical Analysis
The technical picture for ON Semiconductor is turning decisively constructive, offering multiple bullish cues for traders and investors seeking optimal entry points:
- Momentum Indicators: As of late June 2024, the RSI (Relative Strength Index) stands at 58 — well within bullish territory but below overheated levels, supporting a view that the stock’s latest rally is underpinned by genuine buying interest.
- Moving Averages: The 50-day moving average recently crossed above the 200-day MA (“golden cross”), a classic buy signal noted by technical analysts.
- Strong Support and Reversal: The stock’s strong base at $66–68 has repeatedly repelled downside pressure; recent upward bounces from this level have reinforced conviction in its status as a solid support zone.
- MACD: The MACD line has turned positive and remains elevated, suggesting short- to mid-term momentum is with the bulls.
Chart structure suggests that ON could soon retest the $90–95 range if supported by earnings strength or positive news flow—potentially offering a compelling risk/reward structure for new entrants.
Fundamental Analysis
A deeper dive into ON Semiconductor’s financial and operational metrics reveals several pillars supporting renewed investor enthusiasm:
- Revenue and Profitability: ON has grown revenues at a ~13% CAGR over three years, with gross margins expanding steadily due to a purposeful mix shift toward higher-value power solutions and SiC products.
- Valuation Advantages: Trading at a June 2024 P/E of ~16x—below the technology sector average and significantly lower than direct peers exposed primarily to cyclical memory or consumer chips—ON offers an attractive relative entry point. Forward PEG ratios remain under 1.2, highlighting expectations of continued earnings outperformance.
- Leadership in Core Markets: ON Semiconductor’s dominance in automotive power semiconductors and industrial electrification sets an enviable moat. The company’s SiC technology platform is a disruptive force as automakers and energy firms transition toward high-voltage, high-efficiency components.
- Innovation and R&D: Annual R&D spend remains robust at 8–9% of revenue, evidencing a strategic commitment to product leadership and continuous improvement.
- Geographic Resilience: Despite global supply chain reshuffling, ON’s diversified operations and customer base across the US, APAC (including the Philippines), and EMEA mitigate potential macro shocks.
Such fundamentals suggest that ON’s valuation is not only justified but compelling, especially for investors prioritizing exposure to secular growth in EVs, renewables, and automation.
Volume and Liquidity
ON Semiconductor's trading volume has remained healthy and consistent, with a three-month average daily volume eclipsing 6 million shares on NASDAQ as of June 2024. This liquidity speaks to sustained institutional confidence and ensures efficient price discovery for both retail and sophisticated investors.
Moreover, a well-managed float (approximately 97% of shares outstanding) provides ample flexibility for new buyers to establish positions without undue risk of illiquidity or market manipulation, supporting the stock’s dynamic valuation and drawing increased attention from global funds and ETF rebalancing flows.
Catalysts and Positive Outlook
Looking ahead, ON Semiconductor is poised for further upside on the back of several high-confidence catalysts:
- Automotive & SiC Growth: The “auto electrification boom”—including expanded partnerships with global EV manufacturers—is expected to drive double-digit SiC revenue growth through 2026. ON’s ability to secure long-term supply agreements places it ahead of legacy competitors.
- Green Energy and ESG: ON’s exposure to solar inverters, industrial energy storage, and grid modernization aligns closely with the persistent growth of green infrastructure—both regionally and worldwide.
- Manufacturing Expansion: Recent announcements of capacity expansion in both US and Southeast Asian fabs (including supply relationships in the Philippines) bode well for risk diversification and proximity to key customers.
- Product Pipeline and IP: A robust release schedule for next-gen power modules and AI-driven chips fills an innovation pipeline that promises high-margin growth.
- Regulatory Winds: US/Asia decoupling and semiconductor sector support from key governments (notably CHIP Act disbursements and Asia-Pacific bilateral initiatives) provide a stable policy backdrop.
Notably, each of these structural drivers provides tailwinds at a time when many technology peers are grappling with cyclical slowdowns or market saturation.
Investment Strategies
ON Semiconductor’s current technical and fundamental setup presents several compelling avenues for different investor profiles:
- Short-term Entry: Traders may focus on a momentum-based breakout scenario, utilizing the strong support at $68 and targeting upside into the $90–95 resistance zone. Entry on pullbacks to 20-day or 50-day moving averages could maximize near-term risk-reward.
- Medium-term Positioning: Investors seeking 6- to 12-month swing opportunities may accumulate in anticipation of sequential earnings beats or new automotive/industrial contracts entering the order book. The pending Q3 and Q4 earnings reports, historically strong quarters for ON, may serve as bullish catalysts.
- Long-term Allocation: For those with multi-year horizons, ON represents an efficient pure-play vehicle for accessing secular growth in power semiconductors and SiC—a segment anticipated to compound at >15% annually through 2030. Current valuations remain appealing relative to projected cash flows, while the company’s innovation and ESG credentials enhance its long-term profile.
Across these strategies, a common theme emerges: ON Semiconductor’s fundamental strengths appear increasingly aligned with both cyclical recovery and structural, thematic trends—making staged entry or dollar-cost averaging (DCA) approaches particularly sensible at today’s levels.
Is It the Right Time to Buy ON Semiconductor?
In summary, ON Semiconductor’s mix of robust earnings, technical momentum, attractive valuation, and exposure to powerful secular megatrends creates a particularly inviting entry point as we look toward 2025. Its unique positioning within the fast-growing automotive and green energy verticals, together with a healthy pipeline of innovation and global manufacturing resilience, supports the thesis that ON is well situated to outperform technology sector peers in the quarters ahead.
While every investment carries its own risks, the evidence at hand suggests that ON Semiconductor’s current price and prospective catalysts warrant serious consideration for portfolios seeking asymmetric upside and resilient technology exposure. For Philippine investors and regional asset allocators, ON stands out as not just a play on US tech, but as a bridge to the electrified global economy of tomorrow.
ON Semiconductor offers what appears to be an excellent opportunity for those seeking growth, innovation, and strategic positioning in the rapidly evolving semiconductor sector—making it a stock that fully merits renewed attention as a robust candidate for future-oriented investment portfolios.
How to buy ON Semiconductor stock in the PH?
Buying ON Semiconductor stock online is now accessible, straightforward, and safe for investors in the Philippines thanks to regulated brokers. You have two main methods at your disposal: direct (spot) buying—where you own the actual shares—or investing through CFDs (Contracts for Difference), which allow you to speculate on price movements without having to own the stock. Both approaches are secure when using licensed platforms. Below, we detail the advantages, mechanics, and typical costs of each approach, while our comprehensive broker comparison further down the page can help you choose the most suitable provider.
Spot Buying
When you buy ON Semiconductor stock in spot, you purchase real shares listed on the US stock market, making you a shareholder. This is a long-term investment where your profit depends on the stock’s price appreciation and potential dividends. Most Philippine-friendly brokers charge a fixed commission per order, typically ranging from PHP 250–PHP 500, or around $5 (USD).
Example
If ON Semiconductor trades at $72 per share, with a PHP 1,000 = $18 conversion rate, a $1,000 (about PHP 55,000) buy allows you to purchase approximately 13 shares ($1,000 ÷ $72 ≈ 13), including a brokerage fee of around $5.
✔️ Gain scenario:
If the share price rises by 10%, your holdings are now worth $1,100.
Result: +$100 gross gain, or +10% on your initial investment.
Trading via CFD
CFD trading enables you to speculate on ON Semiconductor’s price movements, both rising and falling, without owning the underlying shares. Instead, you enter a contract based on the difference in price. Main costs include the spread (the difference between buy and sell price) and overnight financing fees on leveraged positions.
Example
With a $1,000 stake, you use 5x leverage to open a CFD position—giving you $5,000 of market exposure.
✔️ Gain scenario:
If ON Semiconductor’s price increases by 8%, your position’s value rises by 8% × 5 = 40%.
Result: +$400 gain on a $1,000 capital (excluding spreads and financing costs).
Final Advice
Before making any investment, it’s essential to compare broker fees, minimum deposits, access to global markets, and the range of investment products offered. Spot buying may suit those focused on long-term growth, while CFDs attract active traders seeking flexibility and leverage. Your choice should align with your investment goals, risk tolerance, and trading experience. For a tailored match to your needs, refer to the broker comparison table provided further down the page.
Compare the best brokers in the Philippines!Compare brokersOur 7 tips for buying ON Semiconductor stock
| 📊 Step | 📝 Specific tip for ON Semiconductor |
|---|---|
| Analyze the market | Assess global trends in electric mobility and IoT, as ON Semiconductor plays a vital role in these fast-growing segments. |
| Choose the right trading platform | Use a trusted Philippine broker with international access to the Nasdaq, ensuring transparent fees when buying ON Semiconductor stock. |
| Define your investment budget | Allocate only a portion of your capital to ON Semiconductor, allowing room for diversification and managing risks sensibly. |
| Choose a strategy (short or long term) | For most investors, a long-term approach aligns well with ON Semiconductor’s growth plans in advanced semiconductor solutions. |
| Monitor news and financial results | Keep up-to-date with ON Semiconductor’s quarterly earnings, supply chain developments, and industry news, as these factors can impact stock movements. |
| Use risk management tools | Utilize stop-loss orders and automatic alerts to help protect your investment from sudden price swings. |
| Sell at the right time | Review your goals regularly and consider selling ON Semiconductor shares when your profit target is reached or when market conditions change significantly. |
The latest news about ON Semiconductor
ON Semiconductor announces expanded strategic partnership with Ayala-led AC Industrials in the Philippines. In an official release on June 5, 2024, ON Semiconductor confirmed a new phase of collaboration with Ayala’s AC Industrials, focusing on advanced power semiconductor manufacturing and automotive electronics integration in Laguna and nearby technology hubs. This move aligns with growing electrification and smart mobility initiatives in Southeast Asia, strengthening ON Semiconductor’s regional supply chain while reinforcing its commitment to quality and innovation in the Philippines’ thriving electronics sector.
ON Semiconductor’s Q2 2024 guidance exceeds analyst expectations, driven by automotive and industrial demand. During its June 3, 2024, investor update, ON Semiconductor raised its revenue forecast above consensus, citing robust orders from electric vehicle (EV) and renewable energy clients across key Asian markets, including the Philippines. The local adoption of EV infrastructure and government-backed green energy incentives has boosted ON’s sales pipeline in the Archipelago, indicating a favorable outlook for sustained growth.
Philippine government recognizes ON Semiconductor subsidiary with Export Excellence Award for 2024. The Philippine Economic Zone Authority (PEZA) honored ON Semiconductor Philippines for exceptional export growth and employment generation during its June 2024 ceremony. This recognition underscores ON Semiconductor’s significance as a major contributor to the country’s high-tech manufacturing exports and as a cornerstone employer within the CALABARZON industrial zone.
ON Semiconductor unveils plan to increase capital investment in Philippine production facilities by Q4 2024. Company filings dated June 6, 2024, reveal an approved budget expansion aimed at modernizing wafer processing and assembly lines in its Carmona plant, anticipating surging demand for silicon carbide and power management products. The project is expected to directly create several hundred skilled jobs locally and enhance the reliability of global supply chains, further solidifying the company’s role as a preferred supplier for Asian and Western electronics clients.
Analysts cite ON Semiconductor’s Philippine operations as a key enabler of long-term ESG initiatives and sustainable profitability. A June 2024 sustainability briefing highlighted the company’s progress in environmental impact reduction, thanks in large part to energy efficiency improvements and solar power adoption at its Philippine sites. ESG-focused investors have noted ON’s ability to align profitability objectives with local regulatory priorities, positioning it as a top pick among semiconductor names with demonstrable commitment to responsible growth in emerging Asian markets.
FAQ
What is the latest dividend for ON Semiconductor stock?
ON Semiconductor currently does not pay a dividend. The company has not declared any recent or upcoming dividend distributions. Instead, ON Semiconductor tends to reinvest its earnings to support its growth strategy, product innovation, and expansion in the semiconductor sector, a common practice among growth-driven tech companies.
What is the forecast for ON Semiconductor stock in 2025, 2026, and 2027?
Based on the current share price, the projected values for ON Semiconductor are approximately 1.3 times the current price by the end of 2025, 1.5 times by the end of 2026, and double by the end of 2027. The semiconductor industry remains highly dynamic, driven by strong demand for electric vehicles and advanced electronics, which supports an optimistic outlook for ON Semiconductor's growth trajectory.
Should I sell my ON Semiconductor shares?
Holding onto ON Semiconductor shares can be a prudent strategy, as the company demonstrates solid fundamentals and strategic resilience. The firm benefits from its focus on automotive and industrial markets, both of which are expected to see robust demand. Historically, ON Semiconductor has shown adaptability in evolving market conditions, positioning itself for mid- to long-term growth in a high-potential sector.
How are dividends and capital gains from ON Semiconductor stock taxed for investors in the Philippines?
For Philippine investors, dividends from ON Semiconductor are generally subject to a 30% U.S. withholding tax, with no special exemption for Philippine residents. Capital gains earned from selling foreign stocks like ON Semiconductor are not taxed in the Philippines if the sale occurs outside the Philippine Stock Exchange. Investors should keep detailed records for accurate tax reporting and comply with BIR guidelines regarding overseas investments.
What is the latest dividend for ON Semiconductor stock?
ON Semiconductor currently does not pay a dividend. The company has not declared any recent or upcoming dividend distributions. Instead, ON Semiconductor tends to reinvest its earnings to support its growth strategy, product innovation, and expansion in the semiconductor sector, a common practice among growth-driven tech companies.
What is the forecast for ON Semiconductor stock in 2025, 2026, and 2027?
Based on the current share price, the projected values for ON Semiconductor are approximately 1.3 times the current price by the end of 2025, 1.5 times by the end of 2026, and double by the end of 2027. The semiconductor industry remains highly dynamic, driven by strong demand for electric vehicles and advanced electronics, which supports an optimistic outlook for ON Semiconductor's growth trajectory.
Should I sell my ON Semiconductor shares?
Holding onto ON Semiconductor shares can be a prudent strategy, as the company demonstrates solid fundamentals and strategic resilience. The firm benefits from its focus on automotive and industrial markets, both of which are expected to see robust demand. Historically, ON Semiconductor has shown adaptability in evolving market conditions, positioning itself for mid- to long-term growth in a high-potential sector.
How are dividends and capital gains from ON Semiconductor stock taxed for investors in the Philippines?
For Philippine investors, dividends from ON Semiconductor are generally subject to a 30% U.S. withholding tax, with no special exemption for Philippine residents. Capital gains earned from selling foreign stocks like ON Semiconductor are not taxed in the Philippines if the sale occurs outside the Philippine Stock Exchange. Investors should keep detailed records for accurate tax reporting and comply with BIR guidelines regarding overseas investments.
