Oil Prices Surge Amid Iran Tensions; Eli Lilly Stock Volatility
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy ON?
Source: CNBC
- Oil Price Surge: Oil prices spiked as the UAE reported missile and drone attacks from Iran, with WTI crude rising approximately $3 to $105 per barrel and Brent crude increasing about $6 to $114 per barrel, which could exacerbate global economic uncertainty and inflation expectations.
- Interest Rate Increase: The yield on the 10-year Treasury jumped to around 4.45% and the 30-year yield crossed above 5%, with the odds of a rate hike by year-end rising from 23% to 36%, indicating a shift in market expectations regarding Federal Reserve policy that may impact investor confidence.
- Eli Lilly Stock Volatility: Eli Lilly's stock experienced significant volatility after the FDA reported a patient experiencing liver failure following the use of its obesity drug Foundayo, causing shares to drop nearly $15, although the company later clarified that the adverse event was not related to the drug, leading to a recovery in stock price, highlighting market sensitivity to drug safety issues.
- Market Response: Although Foundayo's initial market performance has not matched Novo Nordisk's Wegovy, over 20,000 people have started using the medication, with more than 80% being new GLP-1 users, indicating potential growth for Foundayo in the market, with expectations for improved sales in the second half of the year.
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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: 103.030
Low
50.00
Averages
61.25
High
80.00
Current: 103.030
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.
U.S. Stocks Decline Amid Iran Tensions
- Market Weakness: Wall Street's major indices fell on Monday, with the Dow Jones dropping 1.1%, the S&P 500 down 0.4%, and the Nasdaq Composite declining 0.2%, reflecting investor concerns over escalating tensions between the U.S. and Iran, which have heightened market uncertainty.
- Palantir Earnings Beat: Palantir Technologies saw its shares rise about 1% in after-hours trading after reporting first-quarter adjusted earnings of $0.33 per share, with revenue surging 85% year-over-year to $1.63 billion, exceeding Wall Street expectations and indicating strong growth momentum.
- Onsemi Revenue Struggles: Despite Onsemi reporting that its first-quarter data center revenue more than doubled year-over-year, its stock fell 4%, with adjusted earnings per share of $0.64 slightly above the consensus estimate of $0.62, and revenue increasing 5% year-over-year to $1.51 billion, failing to significantly boost market confidence.
- Pinterest Stock Surge: Pinterest shares jumped over 16% after posting first-quarter results that exceeded Wall Street estimates, with revenue reaching $1 billion, a 17% year-over-year growth compared to the consensus of $968.12 million, and adjusted earnings of $0.27 per share, beating expectations by $0.05, showcasing strong market performance.
See More
ON Semiconductor's Q1 Data Center Revenue Doubles Year Over Year
- Significant Revenue Growth: ON Semiconductor (ON) disclosed at the 2026 Morgan Stanley Technology, Media & Telecom Conference that its Q1 data center revenue more than doubled year-over-year, indicating strong performance in the rapidly growing data center market, which is expected to further drive overall performance improvements.
- Increased Market Attention: The rapid rise of chip stocks has drawn widespread attention to ON Semiconductor, enhancing investor confidence in its future growth potential, which may attract more capital inflows and further boost the stock price.
- Investment Recommendation Reaffirmed: Despite the significant rise in stock price, analysts have reiterated their
See More
onsemi Reports Strong Q1 Results Exceeding Expectations
- Revenue Growth: onsemi's Q1 revenue reached $1.51 billion, up from $1.45 billion year-over-year, demonstrating the company's strong performance amid improving demand and market recovery, further solidifying its position in the semiconductor industry.
- Narrowed Net Loss: The company reported a net loss of $33.4 million, or $0.08 per share, significantly improved from a loss of $486.1 million and $1.15 per share a year ago, indicating substantial progress in cost control and operational efficiency.
- Increased Non-GAAP Earnings: On a non-GAAP basis, onsemi's earnings rose from $231.6 million ($0.55 per share) last year to $253.1 million ($0.64 per share), reflecting the sustained profitability of its core business and competitive advantages in the market.
- Optimistic Outlook: The company expects Q2 revenue between $1.54 billion and $1.64 billion, with adjusted earnings per share projected at $0.65 to $0.77, indicating management's confidence in future growth, particularly with AI data center business growing over 30%.
See More
ON Semiconductor Q1 Earnings Beat Expectations
- Earnings Beat: ON Semiconductor reported a Q1 non-GAAP EPS of $0.64, beating expectations by $0.02, indicating strong performance that is likely to positively impact stock prices.
- Revenue Growth: The company achieved Q1 revenue of $1.51 billion, a 4.1% year-over-year increase, surpassing market expectations by $20 million, reflecting ongoing growth momentum in the semiconductor industry and boosting investor confidence.
- Future Outlook: ON Semiconductor projects Q2 2026 revenue between $1.535 billion and $1.635 billion, with gross margins expected to range from 37.9% to 39.9%, showcasing optimism for future performance that may attract more investor interest.
- Earnings Guidance: The anticipated Q2 diluted EPS is between $0.60 and $0.72, compared to the consensus of $0.67, indicating a continued improvement in profitability that could further drive stock price appreciation.
See More
Oil Prices Surge Amid Iran Tensions; Eli Lilly Stock Volatility
- Oil Price Surge: Oil prices spiked as the UAE reported missile and drone attacks from Iran, with WTI crude rising approximately $3 to $105 per barrel and Brent crude increasing about $6 to $114 per barrel, which could exacerbate global economic uncertainty and inflation expectations.
- Interest Rate Increase: The yield on the 10-year Treasury jumped to around 4.45% and the 30-year yield crossed above 5%, with the odds of a rate hike by year-end rising from 23% to 36%, indicating a shift in market expectations regarding Federal Reserve policy that may impact investor confidence.
- Eli Lilly Stock Volatility: Eli Lilly's stock experienced significant volatility after the FDA reported a patient experiencing liver failure following the use of its obesity drug Foundayo, causing shares to drop nearly $15, although the company later clarified that the adverse event was not related to the drug, leading to a recovery in stock price, highlighting market sensitivity to drug safety issues.
- Market Response: Although Foundayo's initial market performance has not matched Novo Nordisk's Wegovy, over 20,000 people have started using the medication, with more than 80% being new GLP-1 users, indicating potential growth for Foundayo in the market, with expectations for improved sales in the second half of the year.
See More
Investment Outlook for ON Semiconductor Corporation
- Market Positioning: ON Semiconductor Corporation provides intelligent sensing and power solutions globally, with a current share price of $93.30 and trailing and forward P/E ratios of 338.07 and 33.78, indicating its leveraged role in the accelerating power demands of AI data centers, expected to benefit from the architectural shift tied to NVIDIA's Rubin platform in the second half of 2026.
- Technological Advantage: ON's proprietary T2PAK top-side cooled packaging technology effectively addresses the thermal management bottleneck arising from increased power density in AI systems, with its AI thermal segment projected to grow approximately 100% year-over-year and maintain this trajectory into 2026, while margins are expected to rise from 25-35% to 55-60%.
- Operational Leverage: As the company strategically exits low-margin businesses and reallocates capacity towards AI-driven demand, utilization rates are anticipated to recover from current trough levels to around 80%, potentially driving up to 900 basis points of gross margin expansion, supporting a return to long-term targets above 50%.
- Investor Attention: While 63 hedge fund portfolios held ON stock at the end of Q4 2024, an increase from 45 in the previous quarter, the market's view of ON remains constrained by cyclical weakness in automotive and industrial sectors, underestimating its structural growth potential in the AI domain.
See More
U.S. Stocks Decline Amid Iran Tensions
- Market Weakness: Wall Street's major indices fell on Monday, with the Dow Jones dropping 1.1%, the S&P 500 down 0.4%, and the Nasdaq Composite declining 0.2%, reflecting investor concerns over escalating tensions between the U.S. and Iran, which have heightened market uncertainty.
- Palantir Earnings Beat: Palantir Technologies saw its shares rise about 1% in after-hours trading after reporting first-quarter adjusted earnings of $0.33 per share, with revenue surging 85% year-over-year to $1.63 billion, exceeding Wall Street expectations and indicating strong growth momentum.
- Onsemi Revenue Struggles: Despite Onsemi reporting that its first-quarter data center revenue more than doubled year-over-year, its stock fell 4%, with adjusted earnings per share of $0.64 slightly above the consensus estimate of $0.62, and revenue increasing 5% year-over-year to $1.51 billion, failing to significantly boost market confidence.
- Pinterest Stock Surge: Pinterest shares jumped over 16% after posting first-quarter results that exceeded Wall Street estimates, with revenue reaching $1 billion, a 17% year-over-year growth compared to the consensus of $968.12 million, and adjusted earnings of $0.27 per share, beating expectations by $0.05, showcasing strong market performance.
See More
ON Semiconductor's Q1 Data Center Revenue Doubles Year Over Year
- Significant Revenue Growth: ON Semiconductor (ON) disclosed at the 2026 Morgan Stanley Technology, Media & Telecom Conference that its Q1 data center revenue more than doubled year-over-year, indicating strong performance in the rapidly growing data center market, which is expected to further drive overall performance improvements.
- Increased Market Attention: The rapid rise of chip stocks has drawn widespread attention to ON Semiconductor, enhancing investor confidence in its future growth potential, which may attract more capital inflows and further boost the stock price.
- Investment Recommendation Reaffirmed: Despite the significant rise in stock price, analysts have reiterated their
See More
onsemi Reports Strong Q1 Results Exceeding Expectations
- Revenue Growth: onsemi's Q1 revenue reached $1.51 billion, up from $1.45 billion year-over-year, demonstrating the company's strong performance amid improving demand and market recovery, further solidifying its position in the semiconductor industry.
- Narrowed Net Loss: The company reported a net loss of $33.4 million, or $0.08 per share, significantly improved from a loss of $486.1 million and $1.15 per share a year ago, indicating substantial progress in cost control and operational efficiency.
- Increased Non-GAAP Earnings: On a non-GAAP basis, onsemi's earnings rose from $231.6 million ($0.55 per share) last year to $253.1 million ($0.64 per share), reflecting the sustained profitability of its core business and competitive advantages in the market.
- Optimistic Outlook: The company expects Q2 revenue between $1.54 billion and $1.64 billion, with adjusted earnings per share projected at $0.65 to $0.77, indicating management's confidence in future growth, particularly with AI data center business growing over 30%.
See More
ON Semiconductor Q1 Earnings Beat Expectations
- Earnings Beat: ON Semiconductor reported a Q1 non-GAAP EPS of $0.64, beating expectations by $0.02, indicating strong performance that is likely to positively impact stock prices.
- Revenue Growth: The company achieved Q1 revenue of $1.51 billion, a 4.1% year-over-year increase, surpassing market expectations by $20 million, reflecting ongoing growth momentum in the semiconductor industry and boosting investor confidence.
- Future Outlook: ON Semiconductor projects Q2 2026 revenue between $1.535 billion and $1.635 billion, with gross margins expected to range from 37.9% to 39.9%, showcasing optimism for future performance that may attract more investor interest.
- Earnings Guidance: The anticipated Q2 diluted EPS is between $0.60 and $0.72, compared to the consensus of $0.67, indicating a continued improvement in profitability that could further drive stock price appreciation.
See More
Oil Prices Surge Amid Iran Tensions; Eli Lilly Stock Volatility
- Oil Price Surge: Oil prices spiked as the UAE reported missile and drone attacks from Iran, with WTI crude rising approximately $3 to $105 per barrel and Brent crude increasing about $6 to $114 per barrel, which could exacerbate global economic uncertainty and inflation expectations.
- Interest Rate Increase: The yield on the 10-year Treasury jumped to around 4.45% and the 30-year yield crossed above 5%, with the odds of a rate hike by year-end rising from 23% to 36%, indicating a shift in market expectations regarding Federal Reserve policy that may impact investor confidence.
- Eli Lilly Stock Volatility: Eli Lilly's stock experienced significant volatility after the FDA reported a patient experiencing liver failure following the use of its obesity drug Foundayo, causing shares to drop nearly $15, although the company later clarified that the adverse event was not related to the drug, leading to a recovery in stock price, highlighting market sensitivity to drug safety issues.
- Market Response: Although Foundayo's initial market performance has not matched Novo Nordisk's Wegovy, over 20,000 people have started using the medication, with more than 80% being new GLP-1 users, indicating potential growth for Foundayo in the market, with expectations for improved sales in the second half of the year.
See More
Investment Outlook for ON Semiconductor Corporation
- Market Positioning: ON Semiconductor Corporation provides intelligent sensing and power solutions globally, with a current share price of $93.30 and trailing and forward P/E ratios of 338.07 and 33.78, indicating its leveraged role in the accelerating power demands of AI data centers, expected to benefit from the architectural shift tied to NVIDIA's Rubin platform in the second half of 2026.
- Technological Advantage: ON's proprietary T2PAK top-side cooled packaging technology effectively addresses the thermal management bottleneck arising from increased power density in AI systems, with its AI thermal segment projected to grow approximately 100% year-over-year and maintain this trajectory into 2026, while margins are expected to rise from 25-35% to 55-60%.
- Operational Leverage: As the company strategically exits low-margin businesses and reallocates capacity towards AI-driven demand, utilization rates are anticipated to recover from current trough levels to around 80%, potentially driving up to 900 basis points of gross margin expansion, supporting a return to long-term targets above 50%.
- Investor Attention: While 63 hedge fund portfolios held ON stock at the end of Q4 2024, an increase from 45 in the previous quarter, the market's view of ON remains constrained by cyclical weakness in automotive and industrial sectors, underestimating its structural growth potential in the AI domain.
See More
