Nasdaq Rises 1%; ON Semiconductor Reports Positive Q3 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 03 2025
0mins
Source: Benzinga
U.S. Stock Market Performance: U.S. stocks opened higher, with the Nasdaq Composite gaining 1%, while the Dow and S&P 500 also saw modest increases. Consumer discretionary shares rose by 1.8%, but utilities stocks fell by 0.8%.
ON Semiconductor Earnings Report: ON Semiconductor Corporation reported better-than-expected Q3 earnings of 63 cents per share, surpassing the analyst estimate of 59 cents, along with sales of $1.551 billion.
Significant Stock Movements: MSP Recovery, Inc. shares surged 255%, while Resolute Holdings Management, Inc. and Tharimmune, Inc. also saw significant gains. Conversely, uniQure N.V. shares dropped 59% following FDA feedback on its investigational gene therapy.
Global Market Trends: European shares were mostly higher, with the eurozone's STOXX 600 gaining 0.2%, while Asian markets also closed higher, led by Hong Kong's Hang Seng and China's Shanghai Composite.
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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: 112.920
Low
50.00
Averages
61.25
High
80.00
Current: 112.920
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.
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- Tesla's Strong Earnings: Tesla reported Q1 FY2026 revenue of $22.39 billion, a 15.78% year-over-year increase, with automotive gross margin rising from 16.2% to 21.1%, indicating robust market demand and profitability.
- EV Market Growth: The volume of electric vehicles has driven down battery costs, creating a positive feedback loop that has scaled wide-bandgap semiconductor technology for grid applications, further advancing technological progress in the sector.
- Surge in Silicon Carbide Demand: On Semiconductor and Wolfspeed saw stock price increases of 124.6% and 229.75%, respectively, reflecting strong demand for silicon carbide in electric vehicles and AI data centers, showcasing rapid industry growth potential.
- Investor Focus on Power Electronics: Power electronics is viewed as the
See More
Citi Raises Price Targets for Texas Instruments and ON Semiconductor
- Price Target Increase: Citi raised Texas Instruments' (TXN) price target from $280 to $345 while reiterating it as a top pick, anticipating significant share gains in the data center power market starting in 2H26, which is expected to enhance the company's performance.
- Optimistic Outlook for ON: Citi raised ON Semiconductor's (ON) price target from $100 to $120, maintaining a Neutral rating, but analysts are optimistic about its Silicon Carbide (SiC) business recovery amid the 800V DC transition, expecting renewed momentum to be showcased at the Analyst Day on September 16.
- Market Growth Potential: Analysts project the power delivery market (800V-to-1V conversion) to grow from approximately $2 billion in 2026 to around $12 billion by 2028, with a compound annual growth rate exceeding 70%, driven by rising power requirements for next-gen GPU and ASIC chips.
- Connector Market Opportunities: As the 800V DC transition progresses, analysts believe companies like Amphenol (APH) and TE Connectivity (TEL) will benefit from increased demand for power distribution and thermal management units, further solidifying their market positions.
See More
Analysis of S&P 500 Index Fund Investments
- Investment Recommendation: Most financial advisors recommend low-fee S&P 500 index funds like the Vanguard S&P 500 ETF (VOO) and SPDR S&P 500 ETF (SPY) for their convenience, although they are not perfect, they remain a top choice for many investors.
- Concentration Risk: The top 10 components of the S&P 500 account for 39% of its total market value, with weights of 7.43% for Nvidia, 6.59% for Alphabet, and 6.48% for Apple, indicating a high concentration of investor funds in a few companies, which increases market volatility risk.
- Alternative Investment Options: The Invesco S&P 500 Equal Weight ETF (RSP) offers a more balanced investment approach compared to standard market-cap-weighted funds, with a 15-year average annual return of 12%, lower than Vanguard's 14.4%, but may hold its value better during market downturns.
- Long-Term Return Potential: While the Vanguard S&P 500 ETF has higher long-term returns, the Motley Fool analyst team suggests that there are currently 10 other stocks that could provide higher returns, prompting investors to consider these potential high-yield opportunities when making investment decisions.
See More
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- Concentration Risk: Standard S&P 500 ETFs like Vanguard and SPDR have their top 10 components accounting for 39% of total market value, despite representing only 2% of the index, indicating a high concentration of funds in a few companies, which may pose greater risks during market volatility.
- Alternative Investment Options: The Invesco S&P 500 Equal Weight ETF offers a balanced investment approach, with quarterly rebalancing that equalizes stock weights; although it has averaged annual gains of 12%, lower than Vanguard's 14.4%, it may provide better resilience during market downturns.
- Market Performance Comparison: The Vanguard S&P 500 ETF is currently priced at $681.95, with a 52-week range of $545.75 to $699.15, while the Invesco ETF is priced at $211.65, highlighting performance differences that investors should consider based on their risk tolerance.
- Long-term Investment Strategy: While S&P 500 ETFs have shown strong performance in recent years, investors should be mindful of concentration risks, especially during market corrections, and consider balanced ETFs as part of a long-term investment strategy for more stable returns.
See More
US Stocks Plunge Amid Rising Geopolitical Tensions
- Market Decline: On Wednesday, the S&P 500 Index fell by 1.62%, the Dow Jones Industrial Average dropped by 1.87%, and the Nasdaq 100 Index decreased by 1.98%, indicating a significant market reaction to rising geopolitical tensions that undermined investor confidence.
- Oil Price Surge: Crude oil prices rose over 2% due to escalating tensions in the Middle East, which not only exacerbated losses in stocks and bonds but also pressured airline and trucking companies, highlighting the profound impact of energy price fluctuations on the overall market.
- Stable Inflation Data: The US May Consumer Price Index rose 4.2% year-over-year, in line with expectations, while core CPI increased by 2.9%, alleviating some inflation concerns, although rising oil prices may reignite scrutiny over inflationary pressures.
- Tech Stock Retreat: Chipmakers and AI infrastructure stocks experienced significant declines, with Nvidia and Tesla both dropping over 3%, reflecting a waning confidence in tech stocks that could influence future investment strategies.
See More
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- Market Decline: The S&P 500 Index fell by 0.61%, the Dow Jones Industrial Average dropped by 0.88%, and the Nasdaq 100 Index decreased by 0.80%, indicating investor concerns over chipmakers and AI infrastructure stocks, which reflects a weakening confidence in technology stocks.
- Inflation Data Impact: The US May Consumer Price Index rose by 4.2% year-on-year, meeting expectations and marking the fastest increase in three years, which, while easing inflation concerns, still affects market sentiment and leads to more cautious expectations regarding future interest rate policies.
- Pressure on Airlines and Transport: Trucking companies are under pressure as Amazon expanded its LTL freight service, with Old Dominion Freight Line and FedEx Freight down over 4% and 3% respectively, indicating growing concerns about increased competition in the transportation sector.
- Energy Stocks Rise: WTI crude oil prices increased by over 1%, boosting energy producers like Devon Energy by more than 5%, suggesting that despite overall market weakness, the energy sector's profit outlook remains optimistic amid geopolitical tensions.
See More
