Computer Stocks Lagging Behind Market on Friday
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 26 2026
0mins
Source: NASDAQ.COM
- Market Decline: On Friday, computer stocks collectively fell by approximately 3.6%, indicating a weak performance in the sector that could undermine investor confidence and lead to capital outflows.
- Quantum's Sharp Drop: Quantum's stock plummeted by about 18.2%, making it the worst performer in the industry, with this significant decline likely stemming from market concerns over its future earnings, which could affect its financing capabilities and market position.
- Western Digital's Decline: Western Digital's shares fell by approximately 10.9%, reflecting market worries about demand for storage solutions, which may lead to a loss of market share in a highly competitive environment.
- Semiconductor Sector Impact: The decline in computer stocks is closely tied to the semiconductor industry's performance, and the overall market sentiment could negatively impact investments and R&D efforts for related companies.
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Analyst Views on ON
Wall Street analysts forecast ON stock price to fall
19 Analyst Rating
9 Buy
10 Hold
0 Sell
Moderate Buy
Current: 94.630
Low
50.00
Averages
61.25
High
80.00
Current: 94.630
Low
50.00
Averages
61.25
High
80.00
About ON
ON Semiconductor Corporation is engaged in providing intelligent power and intelligent sensing solutions. The Company’s intelligent power technologies enable the electrification of drivetrain in the automotive industry to allow for lighter and longer-range electric vehicles. Its segments include Power Solutions Group (PSG), the Analog and Mixed-Signal Group (AMG) and the Intelligent Sensing Group (ISG). PSG segment provides a portfolio of discrete, module, and integrated semiconductor devices designed to enable conversion across artificial intelligence (AI) data centers, energy infrastructure, automotive and industrial. AMG segment designs and develops a range of analog and mixed-signal solutions including power‑management, sensor‑interface, connectivity, and products that serve automotive, industrial automation, AI data center, computing, and mobile end markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Investment Comparison Between Broadcom and ON Semiconductor
- Broadcom Financial Performance: In FY 2025, Broadcom's revenue reached nearly $63.9 billion, reflecting a growth of approximately 23.9%, with a net income of about $23.1 billion and a net margin of 36.2%, indicating strong demand in cloud computing and AI sectors.
- ON Semiconductor Market Challenges: ON Semiconductor reported nearly $6.0 billion in revenue for FY 2025, a decline of 15.3%, with a net income of only $121 million and a net margin of 2%, highlighting its heavy reliance on the automotive market and the impact of market fluctuations.
- Financial Health Comparison: Broadcom's current ratio stands at approximately 1.7, indicating solid short-term debt coverage, while ON Semiconductor boasts a current ratio of 4.5, showcasing its strong ability to meet short-term obligations; however, Broadcom's debt-to-equity ratio of 0.8 suggests moderate reliance on borrowed funds.
- Acquisition Risks and Market Outlook: ON Semiconductor's plan to acquire Synaptics for about $7 billion aims to enhance its exposure to physical AI and AI-enabled devices, but this introduces integration risks, whereas Broadcom is expected to continue attracting investor interest in 2026 due to its robust performance in AI and data centers.
See More
Comparative Analysis of Broadcom and ON Semiconductor
- Broadcom Financial Performance: In FY 2025, Broadcom's revenue reached nearly $63.9 billion, reflecting a growth rate of approximately 23.9%, with a net income of about $23.1 billion and a net margin of 36.2%, showcasing strong growth driven by demand for AI-related semiconductor solutions.
- ON Semiconductor Market Challenges: ON Semiconductor reported nearly $6.0 billion in revenue for FY 2025, a decline of 15.3% year-over-year, resulting in a net income of approximately $121 million and a net margin of 2.0%, highlighting its heavy reliance on the automotive sector amid market fluctuations.
- Financial Health Comparison: Broadcom's current ratio stands at approximately 1.7, indicating solid short-term liquidity, while ON Semiconductor boasts a high current ratio of 4.5, reflecting strong short-term debt management; however, their debt-to-equity ratios are 0.8 and 0.5 respectively, indicating different levels of financial leverage.
- Industry Outlook and Risks: Broadcom benefits from robust demand in AI and data centers, enhancing its profitability and cash flow, yet its 40% revenue concentration among top customers poses risks; ON Semiconductor faces cyclical downturns in the automotive sector, and the Synaptics acquisition introduces potential integration risks.
See More
ON Semiconductor Acquires Synaptics in $7 Billion Deal
- Acquisition Deal: ON Semiconductor is acquiring Synaptics in an all-stock transaction valued at approximately $7 billion, marking its largest acquisition to date, with Synaptics shareholders receiving 1.350 shares of Onsemi for each Synaptics share, representing a 19% premium based on the 10-day volume-weighted average closing prices.
- Market Expansion: This acquisition is expected to expand ON Semiconductor's addressable market by $30 billion to $243 billion by 2030, highlighting the company's strong growth potential in the physical AI sector.
- Analyst Rating: Cantor Fitzgerald raised ON Semiconductor's price target from $100 to $110 while maintaining a
See More
Pomerantz LLP Investigates ON Semiconductor Securities Fraud Claims
- Securities Fraud Investigation: Pomerantz LLP is investigating whether ON Semiconductor and its executives have engaged in securities fraud or other unlawful business practices, raising concerns about corporate governance and investor rights.
- Acquisition Announcement: On June 25, 2026, ON Semiconductor announced an all-stock agreement to acquire IoT company Synaptics for an enterprise value of approximately $7 billion, indicating a strategic move to expand its business portfolio as Synaptics shareholders will receive 1.35 shares of ON stock for each Synaptics share.
- Significant Stock Drop: Following the acquisition announcement, ON Semiconductor's stock price fell by $28.09, or 23.66%, closing at $90.65 per share on June 26, 2026, reflecting a negative market reaction that could impact the company's short-term performance.
- Legal Firm's Reputation: Pomerantz LLP, recognized as a leading firm in securities class litigation for over 85 years, emphasizes the increasing investor focus on corporate governance and transparency, as it continues to advocate for victims of securities fraud and corporate misconduct.
See More
Mizuho Lowers ON Semiconductor Target, Raises Synaptics Target
- Price Target Adjustments: Mizuho lowered On Semiconductor's price target from $150 to $125 while raising Synaptics' target from $128 to $170, reflecting differing expectations for the future performance of both companies.
- Acquisition Impact: On Semiconductor announced last week its intention to acquire Synaptics in an all-stock deal worth $7 billion, and although this news caused ON's stock to drop approximately 21% post-announcement, analysts view this as a good entry point with expectations for accelerating trends in the second half.
- Market Demand Recovery: Analysts noted that ON is likely to benefit from a recovery in demand for WiFi connectivity, system-on-chip (SoC), and robotics technologies, particularly with AI data center revenues increasing by 100% year-over-year to about $500 million, representing 7% of total revenue.
- Potential Risks: Despite the optimistic outlook for ON, analysts highlighted potential headwinds for Synaptics due to exposure in the PC and consumer electronics markets, especially as Xiaomi has cut its 2026 handset shipment forecast by 30%, which could pose downside risks for SYNA.
See More
U.S. Stocks Close Higher, Led by Tech Sector Gains
- Tech Sector Rally: Driven by investor anticipation of a strong upcoming earnings season, technology stocks, particularly chipmakers, propelled the Nasdaq 100 index up 1.68%, reaching a one-week high, reflecting optimism surrounding the AI investment boom.
- Labor Market Resilience: The May JOLTS job openings unexpectedly rose by 9,000 to a two-year high of 7.594 million, surpassing expectations of 7.296 million, indicating a robust U.S. labor market that could influence Federal Reserve policy decisions.
- Positive Global Economic Signals: China's June manufacturing PMI increased to 50.3, exceeding expectations of 50.1, suggesting potential for global economic recovery and bolstering market confidence in future growth prospects.
- Oil Price Volatility and Geopolitics: WTI crude oil prices fell over 1% amid escalating tensions in the Middle East, with markets closely monitoring U.S.-Iran negotiations, as energy supply levels return to pre-war norms, potentially impacting future oil price trends.
See More
Investment Comparison Between Broadcom and ON Semiconductor
- Broadcom Financial Performance: In FY 2025, Broadcom's revenue reached nearly $63.9 billion, reflecting a growth of approximately 23.9%, with a net income of about $23.1 billion and a net margin of 36.2%, indicating strong demand in cloud computing and AI sectors.
- ON Semiconductor Market Challenges: ON Semiconductor reported nearly $6.0 billion in revenue for FY 2025, a decline of 15.3%, with a net income of only $121 million and a net margin of 2%, highlighting its heavy reliance on the automotive market and the impact of market fluctuations.
- Financial Health Comparison: Broadcom's current ratio stands at approximately 1.7, indicating solid short-term debt coverage, while ON Semiconductor boasts a current ratio of 4.5, showcasing its strong ability to meet short-term obligations; however, Broadcom's debt-to-equity ratio of 0.8 suggests moderate reliance on borrowed funds.
- Acquisition Risks and Market Outlook: ON Semiconductor's plan to acquire Synaptics for about $7 billion aims to enhance its exposure to physical AI and AI-enabled devices, but this introduces integration risks, whereas Broadcom is expected to continue attracting investor interest in 2026 due to its robust performance in AI and data centers.
See More
Comparative Analysis of Broadcom and ON Semiconductor
- Broadcom Financial Performance: In FY 2025, Broadcom's revenue reached nearly $63.9 billion, reflecting a growth rate of approximately 23.9%, with a net income of about $23.1 billion and a net margin of 36.2%, showcasing strong growth driven by demand for AI-related semiconductor solutions.
- ON Semiconductor Market Challenges: ON Semiconductor reported nearly $6.0 billion in revenue for FY 2025, a decline of 15.3% year-over-year, resulting in a net income of approximately $121 million and a net margin of 2.0%, highlighting its heavy reliance on the automotive sector amid market fluctuations.
- Financial Health Comparison: Broadcom's current ratio stands at approximately 1.7, indicating solid short-term liquidity, while ON Semiconductor boasts a high current ratio of 4.5, reflecting strong short-term debt management; however, their debt-to-equity ratios are 0.8 and 0.5 respectively, indicating different levels of financial leverage.
- Industry Outlook and Risks: Broadcom benefits from robust demand in AI and data centers, enhancing its profitability and cash flow, yet its 40% revenue concentration among top customers poses risks; ON Semiconductor faces cyclical downturns in the automotive sector, and the Synaptics acquisition introduces potential integration risks.
See More
ON Semiconductor Acquires Synaptics in $7 Billion Deal
- Acquisition Deal: ON Semiconductor is acquiring Synaptics in an all-stock transaction valued at approximately $7 billion, marking its largest acquisition to date, with Synaptics shareholders receiving 1.350 shares of Onsemi for each Synaptics share, representing a 19% premium based on the 10-day volume-weighted average closing prices.
- Market Expansion: This acquisition is expected to expand ON Semiconductor's addressable market by $30 billion to $243 billion by 2030, highlighting the company's strong growth potential in the physical AI sector.
- Analyst Rating: Cantor Fitzgerald raised ON Semiconductor's price target from $100 to $110 while maintaining a
See More
Pomerantz LLP Investigates ON Semiconductor Securities Fraud Claims
- Securities Fraud Investigation: Pomerantz LLP is investigating whether ON Semiconductor and its executives have engaged in securities fraud or other unlawful business practices, raising concerns about corporate governance and investor rights.
- Acquisition Announcement: On June 25, 2026, ON Semiconductor announced an all-stock agreement to acquire IoT company Synaptics for an enterprise value of approximately $7 billion, indicating a strategic move to expand its business portfolio as Synaptics shareholders will receive 1.35 shares of ON stock for each Synaptics share.
- Significant Stock Drop: Following the acquisition announcement, ON Semiconductor's stock price fell by $28.09, or 23.66%, closing at $90.65 per share on June 26, 2026, reflecting a negative market reaction that could impact the company's short-term performance.
- Legal Firm's Reputation: Pomerantz LLP, recognized as a leading firm in securities class litigation for over 85 years, emphasizes the increasing investor focus on corporate governance and transparency, as it continues to advocate for victims of securities fraud and corporate misconduct.
See More
Mizuho Lowers ON Semiconductor Target, Raises Synaptics Target
- Price Target Adjustments: Mizuho lowered On Semiconductor's price target from $150 to $125 while raising Synaptics' target from $128 to $170, reflecting differing expectations for the future performance of both companies.
- Acquisition Impact: On Semiconductor announced last week its intention to acquire Synaptics in an all-stock deal worth $7 billion, and although this news caused ON's stock to drop approximately 21% post-announcement, analysts view this as a good entry point with expectations for accelerating trends in the second half.
- Market Demand Recovery: Analysts noted that ON is likely to benefit from a recovery in demand for WiFi connectivity, system-on-chip (SoC), and robotics technologies, particularly with AI data center revenues increasing by 100% year-over-year to about $500 million, representing 7% of total revenue.
- Potential Risks: Despite the optimistic outlook for ON, analysts highlighted potential headwinds for Synaptics due to exposure in the PC and consumer electronics markets, especially as Xiaomi has cut its 2026 handset shipment forecast by 30%, which could pose downside risks for SYNA.
See More
U.S. Stocks Close Higher, Led by Tech Sector Gains
- Tech Sector Rally: Driven by investor anticipation of a strong upcoming earnings season, technology stocks, particularly chipmakers, propelled the Nasdaq 100 index up 1.68%, reaching a one-week high, reflecting optimism surrounding the AI investment boom.
- Labor Market Resilience: The May JOLTS job openings unexpectedly rose by 9,000 to a two-year high of 7.594 million, surpassing expectations of 7.296 million, indicating a robust U.S. labor market that could influence Federal Reserve policy decisions.
- Positive Global Economic Signals: China's June manufacturing PMI increased to 50.3, exceeding expectations of 50.1, suggesting potential for global economic recovery and bolstering market confidence in future growth prospects.
- Oil Price Volatility and Geopolitics: WTI crude oil prices fell over 1% amid escalating tensions in the Middle East, with markets closely monitoring U.S.-Iran negotiations, as energy supply levels return to pre-war norms, potentially impacting future oil price trends.
See More
