SMH ETF Update, October 1, 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 01 2025
0mins
Should l Buy ON?
Source: TipRanks
SMH Stock Performance: The VanEck Semiconductor ETF (SMH) has increased by 2.8% over the past week and 34.8% year-to-date, with a Moderate Buy rating and a price target suggesting a 4.4% upside.
Holdings Analysis: The top five holdings with the highest upside potential include Universal Display and Microchip Technology, while Intel and Teradyne are among those with the greatest downside potential; SMH's ETF Smart Score indicates it is likely to outperform the market.
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Analyst Views on ON
Wall Street analysts forecast ON stock price to rise
19 Analyst Rating
9 Buy
10 Hold
0 Sell
Moderate Buy
Current: 57.690
Low
50.00
Averages
61.25
High
80.00
Current: 57.690
Low
50.00
Averages
61.25
High
80.00
About ON
ON Semiconductor Corporation operates under the onsemi brand. It provides intelligent power and intelligent sensing solutions. Its segments include the Power Solutions Group (PSG), the Analog & Mixed-Signal Group (AMG), and the Intelligent Sensing Group (ISG). PSG offers an array of discrete, module and integrated semiconductor products that perform multiple application functions, including power switching, signal conditioning, and circuit protection. AMG designs and develops analog, mixed-signal, Power Management ICs, Sensor Interface devices, Power Conversion, Signal Chain, and Voltage Regulation devices for a broad base of end-users in the automotive, industrial, computing and mobile end-markets. ISG designs and develops CMOS image sensors, image signal processors, single photon detectors, including SiPM, SPAD arrays and short-wavelength infrared products, as well as actuator drivers for autofocus and image stabilization for a broad base of end-users in the different 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.
ON Semiconductor Stock Sees Modest Gain
- Stock Performance: ON Semiconductor closed at $58.55, marking a 1.49% increase from the previous day, outperforming the S&P 500's 0.61% decline, indicating some market resilience.
- Monthly Decline: Despite the daily gain, ON's shares have dropped 18.32% over the past month, failing to keep pace with the Computer and Technology sector's 1.56% loss, reflecting short-term challenges faced by the company.
- Earnings Expectations: Analysts expect ON to report earnings of $0.62 per share in the upcoming earnings report, representing a year-over-year growth of 12.73%, with revenue forecasted at $1.49 billion, a 2.9% increase from the same quarter last year, which could positively impact investor sentiment.
- Valuation Analysis: ON's forward P/E ratio stands at 19.77, significantly lower than the industry average of 38.92, suggesting the stock is relatively undervalued, while a PEG ratio of 0.61 indicates strong future earnings growth potential, likely attracting value investors' interest.
See More
Nike Stock Underperforms but Remains a Strong Hold
- Stock Performance Analysis: Nike's stock has declined 5% over the past five trading days and over 12% year-to-date, currently trading below $56, marking its lowest level since initiating a position around $68 last September, reflecting market concerns about its future performance.
- Analyst Rating Adjustment: Barclays upgraded Nike's rating from neutral to buy, acknowledging that while Wall Street's expectations may still be high, the risk-to-reward profile has shifted favorably, making Nike an attractive investment opportunity at this stage.
- North America Focus: Under CEO Elliott Hill's leadership, Nike has improved its performance in North America, cleaned up inventory, and driven impressive growth in its running business, indicating potential for brand revitalization.
- Challenges in China: Declining sales in China have been a major reason for Nike's stock drop, leading analysts to lower fiscal 2027 earnings per share estimates; however, Wells Fargo maintains a buy rating, reflecting confidence in Nike's long-term value.
See More
onsemi Power Solutions Group President Resigns
- Executive Departure: onsemi's Power Solutions Group President Simon Keeton has resigned after 19 years, planning to assist in the transition until June 30, which may impact the company's strategic direction and leadership stability.
- Revenue Contribution: The Power Solutions Group is onsemi's most significant revenue generator, reporting $724.2 million in Q4 2022, down 11% year-over-year, indicating weak market demand that could affect future investments and resource allocation.
- Overall Performance Decline: All business segments experienced revenue declines, with the Analog and Mixed-Signal Group at $556 million, down 9%, and the Intelligent Sensing Group at $249.6 million, down 17%, reflecting challenges in the overall market environment.
- Career Progression: Keeton joined onsemi in 2007 and held various positions, culminating in his promotion to President of the Power Solutions Group in February 2024; his resignation may influence internal talent mobility and future leadership selection.
See More
Semiconductor Stocks Rebound as Investors Reassess Risks
- Market Rebound: Semiconductor stocks rebounded on Wednesday after several days of steep losses, as investors reassessed geopolitical risks and tech-sector volatility, indicating a subtle shift in market sentiment.
- Earnings Report Impact: Despite Nvidia reporting strong earnings, investor focus remained on AI profitability, heavy capital spending, and macroeconomic pressures, reflecting ongoing caution about future uncertainties in the sector.
- Investor Advice: CNBC's Jim Cramer advised investors to remain calm amid sharp market swings and avoid panic selling, emphasizing that there are no fundamental issues in the memory sector and urging patience for potential market rebounds.
- Billionaire Buy-In: Billionaire Leo KoGuan purchased 1 million shares of Nvidia on Tuesday, signaling strong confidence in the future of artificial intelligence, and plans to buy more, demonstrating support for the market and optimism about the AI industry.
See More
Nvidia Earnings Fail to Boost Semiconductor Stocks
- Nvidia Earnings Reaction: Nvidia reported fourth-quarter revenue of $68.13 billion, a 73% year-over-year increase that surpassed the Street's estimate of $66 billion, yet failed to excite investors, leading to a decline in semiconductor stocks.
- Strong Data Center Performance: The data center segment generated a record $62.3 billion in revenue, rising 75% year-over-year, indicating robust market demand, but concerns about AI profitability persist among investors.
- Increased Market Volatility: Rising oil prices and bond yields have heightened market volatility, with Nvidia shares dropping 5.5%, negatively impacting the entire semiconductor index and causing declines in other chipmakers like Broadcom and AMD.
- Cautious Future Outlook: Although Nvidia expects first-quarter revenue between $76.44 billion and $79.56 billion, exceeding the Street estimate of $71.96 billion, supply constraints may affect the gaming segment, raising investor concerns about future performance.
See More
Analysis of Three Overhyped Stocks Risks
- onsemi Performance Decline: onsemi (NASDAQ:ON), a global analog chip supplier, has seen a 14.8% drop in sales over the past two years, with projected sales growth of only 4.9% for the next 12 months, indicating weak demand and a 17.7 percentage point decline in operating margin, prompting caution among investors.
- Hyatt Hotel Challenges: Hyatt Hotels (NYSE:H) has faced weak revenue per room over the past two years, with an operating margin of just 5.3%, limiting its ability to respond to new competitive threats, while a 4.5% free cash flow margin restricts its capacity for growth investments or stock buybacks.
- Columbia Financial Profitability Issues: Columbia Financial (NASDAQ:CLBK) has experienced flat net interest income over the past five years, with a net interest margin of only 2.1%, indicating insufficient profitability; despite revenue growth, earnings per share have declined by 1.9% annually, reflecting lower profitability from incremental sales.
- Market Volatility Risks: As these stocks approach their 52-week highs, market sentiment may lead to short-term volatility, necessitating investor awareness of potential market correction risks, particularly regarding investments in these overvalued companies that require careful evaluation.
See More
ON Semiconductor Stock Sees Modest Gain
- Stock Performance: ON Semiconductor closed at $58.55, marking a 1.49% increase from the previous day, outperforming the S&P 500's 0.61% decline, indicating some market resilience.
- Monthly Decline: Despite the daily gain, ON's shares have dropped 18.32% over the past month, failing to keep pace with the Computer and Technology sector's 1.56% loss, reflecting short-term challenges faced by the company.
- Earnings Expectations: Analysts expect ON to report earnings of $0.62 per share in the upcoming earnings report, representing a year-over-year growth of 12.73%, with revenue forecasted at $1.49 billion, a 2.9% increase from the same quarter last year, which could positively impact investor sentiment.
- Valuation Analysis: ON's forward P/E ratio stands at 19.77, significantly lower than the industry average of 38.92, suggesting the stock is relatively undervalued, while a PEG ratio of 0.61 indicates strong future earnings growth potential, likely attracting value investors' interest.
See More
Nike Stock Underperforms but Remains a Strong Hold
- Stock Performance Analysis: Nike's stock has declined 5% over the past five trading days and over 12% year-to-date, currently trading below $56, marking its lowest level since initiating a position around $68 last September, reflecting market concerns about its future performance.
- Analyst Rating Adjustment: Barclays upgraded Nike's rating from neutral to buy, acknowledging that while Wall Street's expectations may still be high, the risk-to-reward profile has shifted favorably, making Nike an attractive investment opportunity at this stage.
- North America Focus: Under CEO Elliott Hill's leadership, Nike has improved its performance in North America, cleaned up inventory, and driven impressive growth in its running business, indicating potential for brand revitalization.
- Challenges in China: Declining sales in China have been a major reason for Nike's stock drop, leading analysts to lower fiscal 2027 earnings per share estimates; however, Wells Fargo maintains a buy rating, reflecting confidence in Nike's long-term value.
See More
onsemi Power Solutions Group President Resigns
- Executive Departure: onsemi's Power Solutions Group President Simon Keeton has resigned after 19 years, planning to assist in the transition until June 30, which may impact the company's strategic direction and leadership stability.
- Revenue Contribution: The Power Solutions Group is onsemi's most significant revenue generator, reporting $724.2 million in Q4 2022, down 11% year-over-year, indicating weak market demand that could affect future investments and resource allocation.
- Overall Performance Decline: All business segments experienced revenue declines, with the Analog and Mixed-Signal Group at $556 million, down 9%, and the Intelligent Sensing Group at $249.6 million, down 17%, reflecting challenges in the overall market environment.
- Career Progression: Keeton joined onsemi in 2007 and held various positions, culminating in his promotion to President of the Power Solutions Group in February 2024; his resignation may influence internal talent mobility and future leadership selection.
See More
Semiconductor Stocks Rebound as Investors Reassess Risks
- Market Rebound: Semiconductor stocks rebounded on Wednesday after several days of steep losses, as investors reassessed geopolitical risks and tech-sector volatility, indicating a subtle shift in market sentiment.
- Earnings Report Impact: Despite Nvidia reporting strong earnings, investor focus remained on AI profitability, heavy capital spending, and macroeconomic pressures, reflecting ongoing caution about future uncertainties in the sector.
- Investor Advice: CNBC's Jim Cramer advised investors to remain calm amid sharp market swings and avoid panic selling, emphasizing that there are no fundamental issues in the memory sector and urging patience for potential market rebounds.
- Billionaire Buy-In: Billionaire Leo KoGuan purchased 1 million shares of Nvidia on Tuesday, signaling strong confidence in the future of artificial intelligence, and plans to buy more, demonstrating support for the market and optimism about the AI industry.
See More
Nvidia Earnings Fail to Boost Semiconductor Stocks
- Nvidia Earnings Reaction: Nvidia reported fourth-quarter revenue of $68.13 billion, a 73% year-over-year increase that surpassed the Street's estimate of $66 billion, yet failed to excite investors, leading to a decline in semiconductor stocks.
- Strong Data Center Performance: The data center segment generated a record $62.3 billion in revenue, rising 75% year-over-year, indicating robust market demand, but concerns about AI profitability persist among investors.
- Increased Market Volatility: Rising oil prices and bond yields have heightened market volatility, with Nvidia shares dropping 5.5%, negatively impacting the entire semiconductor index and causing declines in other chipmakers like Broadcom and AMD.
- Cautious Future Outlook: Although Nvidia expects first-quarter revenue between $76.44 billion and $79.56 billion, exceeding the Street estimate of $71.96 billion, supply constraints may affect the gaming segment, raising investor concerns about future performance.
See More
Analysis of Three Overhyped Stocks Risks
- onsemi Performance Decline: onsemi (NASDAQ:ON), a global analog chip supplier, has seen a 14.8% drop in sales over the past two years, with projected sales growth of only 4.9% for the next 12 months, indicating weak demand and a 17.7 percentage point decline in operating margin, prompting caution among investors.
- Hyatt Hotel Challenges: Hyatt Hotels (NYSE:H) has faced weak revenue per room over the past two years, with an operating margin of just 5.3%, limiting its ability to respond to new competitive threats, while a 4.5% free cash flow margin restricts its capacity for growth investments or stock buybacks.
- Columbia Financial Profitability Issues: Columbia Financial (NASDAQ:CLBK) has experienced flat net interest income over the past five years, with a net interest margin of only 2.1%, indicating insufficient profitability; despite revenue growth, earnings per share have declined by 1.9% annually, reflecting lower profitability from incremental sales.
- Market Volatility Risks: As these stocks approach their 52-week highs, market sentiment may lead to short-term volatility, necessitating investor awareness of potential market correction risks, particularly regarding investments in these overvalued companies that require careful evaluation.
See More
