Semiconductor Stocks Decline Amid Inflation Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 12 2026
0mins
Should l Buy ON?
Source: Newsfilter
ON Semiconductor Corp's stock fell by 5.03% as it crossed below the 5-day SMA, reflecting a broader trend in the semiconductor sector. The decline was driven by a significant pullback in chip stocks following a hotter-than-expected inflation report, which raised investor concerns about future growth prospects. Major players like Qualcomm and Intel also experienced substantial losses, indicating a shift in market sentiment towards a risk-off stance amid inflationary pressures.
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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: 109.430
Low
50.00
Averages
61.25
High
80.00
Current: 109.430
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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See More
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- Industry Impact: Intel shares fell 8%, while On Semiconductor and Skyworks Solutions dropped over 6%, and the iShares Semiconductor ETF sank 5%, reflecting the sector's vulnerability amid high inflation and geopolitical risks.
- Shifting AI Demand: Although recent AI demand has driven chip stocks higher, expectations of a transition from AI training to agents may affect demand for other AI components, leading to declines in memory chip makers like Micron and Sandisk, which fell 6% and 8%, respectively.
- Price Increase Trend: Memory chip manufacturers are raising prices amid ongoing supply shortages, and while Sandisk's stock has surged more than sixfold since the beginning of the year, market confidence in its future performance has been undermined by weak sales forecasts.
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- AI Leadership Shift: While Nvidia remains a dominant player in the AI sector, investor confidence has shifted towards CPU and memory chip manufacturers, who are expected to benefit from the rise of AI agents, thus driving demand for their stocks.
- Price Increase Trend: Memory chip makers are raising prices amid an ongoing supply shortage, with Micron and SanDisk falling 6% and 8% respectively; however, SanDisk's stock has surged over sixfold since the beginning of the year, reflecting market recognition of its long-term growth potential.
- Market Sentiment Shift: The rise in oil prices due to the war in Iran has heightened investor sensitivity to risk, leading to a pullback in chip stocks after a substantial rally, which underscores the uncertainty surrounding the economic outlook.
See More
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- AI Platform Innovation: The launch of Dell AI Factory allows organizations to easily implement AI applications, attracting notable companies like McLaren and Lowe's, highlighting its potential and market acceptance in the AI sector.
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See More
