On Semiconductor (ON) | News Based Sentiment Analysis

• On October 2, 2025, ON Semiconductor maintained a consensus "Buy" rating from analysts, with an average price target of $57.04. Reports indicated price targets ranging from $56.68 (a 15.04% upside from $49.27) to $59.65, with a high of $90.00 and a low of $34.00 based on 26 analysts – signaling varied, but generally optimistic, expectations for the stock.
• Despite the positive analyst outlook, ON Semiconductor's stock closed at $48.35 on October 1, 2025, a 1.95% decrease, underperforming the S&P 500 (0.34% gain), Dow (0.09% increase), and Nasdaq (0.42% appreciation). This suggests short-term market pressures are impacting the stock despite long-term analyst confidence.
• Mirae Asset Global Investments significantly increased its stake in ON Semiconductor on October 3, 2025, purchasing 60,050 shares, raising total holdings by 7.9% to 818,390 shares, valued at approximately $42.9 million. This substantial investment demonstrates strong institutional confidence in the company's future prospects.
• Looking ahead to Q3 2025, ON Semiconductor anticipates revenues between $1.465 billion and $1.565 billion, with non-GAAP EPS between 54 cents and 64 cents. However, analysts currently expect $0.59 EPS (a 40.4% year-over-year decline) and $1.52 billion revenue (a 14.01% decrease), indicating a potential gap between company guidance and market expectations.
• ON Semiconductor is strategically expanding its portfolio with a focus on AI data center demand, with Q2 2025 AI data center revenues more than doubling year-over-year. The company also acquired rights to Aura Semiconductor's Vcore power technologies on October 1, 2025, to strengthen power management for these critical applications.
• In 2025, ON Semiconductor finalized the $115 million acquisition of Qorvo's Silicon Carbide Junction Field-Effect Transistor business, including United Silicon Carbide, enhancing its EliteSiC power portfolio. This acquisition positions the company to capitalize on the growing demand for silicon carbide technology.
• ON Semiconductor continues to forge key partnerships, having partnered with NVIDIA in July 2025 to develop 800 VDC power architectures for AI data centers and expanded collaboration with Schaeffler, securing a design win for its EliteSiC silicon carbide MOSFETs in a plug-in hybrid electric vehicle platform.

The Investment Story: October saw ON Semiconductor navigating a mixed landscape of positive analyst sentiment and institutional investment alongside short-term stock underperformance and cautious earnings expectations. The company is strategically positioning itself for growth in the AI data center and electric vehicle markets through acquisitions and partnerships.

What It Means for Investors: While analyst confidence and institutional backing are encouraging, investors should be aware of the potential for near-term earnings declines and the gap between company guidance and analyst estimates. The strategic focus on AI and electric vehicles offers long-term growth potential, but execution will be key.

Looking Ahead: Investors should closely monitor ON Semiconductor's Q3 2025 earnings report to see if the company can meet or exceed analyst expectations. Further developments in the AI data center and electric vehicle markets, as well as the integration of the Qorvo acquisition, will also be important to watch.

The Bottom Line: ON Semiconductor presents a compelling, albeit somewhat risky, investment opportunity. The company's strategic moves and strong institutional support are positive signs, but investors should carefully weigh the potential for near-term earnings headwinds and the competitive pressures in the semiconductor industry.