ON Semiconductor Expands EV Collaboration with Geely
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy ON?
Source: seekingalpha
ON Semiconductor Corp's stock rose by 5.51% as it crossed above the 5-day SMA, reflecting positive market activity.
The company has expanded its partnership with Geely Auto Group to enhance the development of next-generation electric vehicles, integrating ON's EliteSiC technologies into Geely's SEA-S architecture. This collaboration aims to support 900V EV architectures, improving charging times and driving ranges, which directly addresses consumer demand for efficient electric vehicles. The partnership is expected to accelerate system-level design processes, ensuring reliability and durability under complex driving conditions, thereby enhancing user confidence.
This strategic move not only strengthens ON Semiconductor's position in the electric vehicle market but also aligns with the growing trend of collaboration between automakers and semiconductor companies, indicating promising growth prospects in the EV sector.
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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: 100.810
Low
50.00
Averages
61.25
High
80.00
Current: 100.810
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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- Earnings Announcement Date: ON Semiconductor is set to release its Q1 2023 earnings on May 4th after market close, with a consensus EPS estimate of $0.61, reflecting a 10.9% year-over-year increase, indicating ongoing improvements in profitability that could positively impact stock prices.
- Revenue Expectations: The anticipated revenue for Q1 is $1.49 billion, representing a 2.8% year-over-year growth; although there have been no upward revisions to revenue estimates, this stability may attract investor interest in the company's performance.
- Historical Performance Review: Over the past two years, ON Semiconductor has beaten EPS and revenue estimates 75% of the time, which strengthens market confidence in its future performance and could lead to further stock price appreciation.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 13 upward revisions and 9 downward revisions, while revenue estimates have experienced no upward revisions and 26 downward revisions, indicating a concerning imbalance that may raise market apprehensions about the company's growth prospects.
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- Unemployment Rate Stability: The unemployment rate is anticipated to remain steady at 4.3%, suggesting that despite the decrease in job additions, the labor market remains relatively stable, potentially alleviating fears of an economic downturn.
- GDP Growth Situation: The U.S. GDP grew at a seasonally adjusted annualized rate of 2% in the first quarter, higher than the fourth quarter's 0.5% but below the 2.2% estimate, reflecting economic sluggishness that may influence future monetary policy decisions.
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ON Semiconductor Faces Increased Risk of Stock Pullback
- Stock Surge vs. Fundamentals: ON Semiconductor's stock has nearly doubled from a low of $50 to $100, yet its core automotive business continues to face declining growth and weak margins, indicating that market expectations for recovery may be overly optimistic.
- Volatile EV Demand: While global EV sales rose over 20% in 2025, February 2026 saw an 11% year-over-year decline in global registrations, with China and North America down 32% and 35% respectively, highlighting the fragility of near-term demand that could impact the company's performance.
- Increased Competition and Margin Pressure: ON faces growing competition in the silicon carbide market from Chinese players, and despite an expected EPS growth of 32.5%, its net margin of only 2% significantly lags the industry average of 14.7%, placing the company at a disadvantage in price competition.
- Technical Overbought Signals: The stock's rapid ascent has led to overbought conditions, and if market sentiment shifts, a swift pullback to the $70 range is plausible, prompting investors to carefully assess the associated risks.
See More
ON Semiconductor Q1 Earnings Preview
- Earnings Announcement Date: ON Semiconductor is set to release its Q1 2023 earnings on May 4th after market close, with a consensus EPS estimate of $0.61, reflecting a 10.9% year-over-year increase, indicating ongoing improvements in profitability that could positively impact stock prices.
- Revenue Expectations: The anticipated revenue for Q1 is $1.49 billion, representing a 2.8% year-over-year growth; although there have been no upward revisions to revenue estimates, this stability may attract investor interest in the company's performance.
- Historical Performance Review: Over the past two years, ON Semiconductor has beaten EPS and revenue estimates 75% of the time, which strengthens market confidence in its future performance and could lead to further stock price appreciation.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 13 upward revisions and 9 downward revisions, while revenue estimates have experienced no upward revisions and 26 downward revisions, indicating a concerning imbalance that may raise market apprehensions about the company's growth prospects.
See More
Market Thrives Amid Tough Earnings Week, Cramer Warns of Volatility Ahead
- Strong Market Performance: Despite a challenging earnings week, Jim Cramer highlighted that the market has thrived, particularly driven by AI and data center stocks, reflecting robust investor confidence and industry vitality.
- Volatility Warning Ahead: Cramer cautioned investors that while the current market is performing well, the upcoming week may bring more uncertainty, advising against rotating out of tech winners in light of forthcoming earnings and jobs reports.
- Optimistic Industry Outlook: Cramer expressed optimism for companies like Eaton and AMD, anticipating that they will benefit from the expansion of AI infrastructure, which is expected to yield positive returns for investors and further solidify the market position of tech stocks.
- Labor Market Transformation: Cramer noted that the labor market is undergoing significant changes driven by artificial intelligence, with fewer hires but increased productivity, a dynamic that will continue to propel market growth and underscores the long-term investment value of tech stocks.
See More
Market Faces Earnings Season Challenges and Opportunities
- Earnings Season Performance: Jim Cramer noted that while the market powered through a tough earnings week with strong results, the upcoming week could present greater challenges, particularly as the performance of major tech stocks may not be sustainable, urging investors to remain vigilant.
- Industry Dynamics: Cramer believes that demand for data centers remains robust, expecting Eaton to report solid results due to its close ties to the ongoing expansion of AI infrastructure, indicating sustained growth potential in the sector.
- Investment Recommendations: Cramer suggests buying AMD ahead of its earnings report, anticipating potential surprises, while also expressing optimism for connectivity companies like Lumentum and Arista Networks, reflecting confidence in the semiconductor industry.
- Market Trends: Cramer emphasized that this earnings season reveals real evidence of the so-called fourth industrial revolution, with productivity gains driven by artificial intelligence reshaping the labor market, and investors should continue to focus on leading tech stocks to capitalize on this trend.
See More
Analysis of Upcoming U.S. Jobs Report Outlook
- Job Market Expectations: According to FactSet consensus estimates, the U.S. is expected to add only 50,000 jobs in April, significantly lower than March's 178,000, indicating signs of economic slowdown that could impact investor confidence.
- Unemployment Rate Stability: The unemployment rate is anticipated to remain steady at 4.3%, suggesting that despite the decrease in job additions, the labor market remains relatively stable, potentially alleviating fears of an economic downturn.
- GDP Growth Situation: The U.S. GDP grew at a seasonally adjusted annualized rate of 2% in the first quarter, higher than the fourth quarter's 0.5% but below the 2.2% estimate, reflecting economic sluggishness that may influence future monetary policy decisions.
- Market Volatility: Despite a strong performance in April, with the S&P 500 and Nasdaq hitting record highs, investors should remain cautious of the upcoming
See More
Apple Beats Earnings Estimates, Shares Rise Over 3%
- Apple's Strong Performance: Apple exceeded earnings expectations in its latest report, with both revenue and profit growth driving shares up over 3% in after-hours trading, despite iPhone sales falling short, indicating strong demand for its services segment.
- Energy Stocks Surge: Following the outbreak of the Iran war, Chevron and Exxon Mobil saw their shares rise by 9.3% and 9.1%, respectively, reflecting market confidence in the energy sector amid heightened global energy tensions.
- Berkshire Hathaway's Decline: Berkshire Hathaway's A shares have dropped over 5% year-to-date and 11% over the year, raising concerns among investors about its long-term growth prospects, with the current share price at $711,900.
- Weakness in Auto Sector: Major automakers have experienced significant stock declines over the past three months, with Toyota, Ford, and General Motors down 15%, 13%, and 8.5%, respectively, reflecting a pessimistic outlook for recovery in the automotive industry.
See More
ON Semiconductor Faces Increased Risk of Stock Pullback
- Stock Surge vs. Fundamentals: ON Semiconductor's stock has nearly doubled from a low of $50 to $100, yet its core automotive business continues to face declining growth and weak margins, indicating that market expectations for recovery may be overly optimistic.
- Volatile EV Demand: While global EV sales rose over 20% in 2025, February 2026 saw an 11% year-over-year decline in global registrations, with China and North America down 32% and 35% respectively, highlighting the fragility of near-term demand that could impact the company's performance.
- Increased Competition and Margin Pressure: ON faces growing competition in the silicon carbide market from Chinese players, and despite an expected EPS growth of 32.5%, its net margin of only 2% significantly lags the industry average of 14.7%, placing the company at a disadvantage in price competition.
- Technical Overbought Signals: The stock's rapid ascent has led to overbought conditions, and if market sentiment shifts, a swift pullback to the $70 range is plausible, prompting investors to carefully assess the associated risks.
See More
