2024-04-25 14:09:04 ET
Summary
- ON Semiconductor Corporation has slid to multi-year lows due to slower-than-expected demand growth for semiconductors in the auto sector.
- The company is not expected to report a strong quarter in Q1, due to inventory digestion issues and slowing end demand.
- ON Semiconductor is poised to benefit from the long-term growth in the need for intelligent power and sensing solutions in the EV and industrial markets.
- ON Semiconductor stock is cheap at ~13x '25 EPS targets.
The auto sector semiconductor demand didn't reach strong expectations during 2023, leading ON Semiconductor Corporation ( ON ) stock to slide to multi-year lows. The sector has seen EV demand slow, leading to a hiccup in demand growth for semiconductors, but the electric vehicle ("EV") wave should ultimately hit between now and the end of the decade. My investment thesis is Bullish on the semi stock hitting a double bottom around $60 recently....
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ON Semiconductor: Poised To Rebound