Latest news with #ONSemiconductor
Yahoo
5 days ago
- Business
- Yahoo
ON Semiconductor Plunges 35% YTD: Buy, Sell or Hold the Stock?
ON Semiconductor ON shares have lost 34.5% year to date, underperforming the Zacks Semiconductor - Analog and Mixed industry's decline of 5.9% and the Zacks Computer & Technology sector's 3.7%.The decline in ON Semiconductor's share price can be attributed to weak growth across Power Solutions Group (PSG), Analog and Mixed Signals Group (AMG) and Intelligent Sensing Group (ISG). In the recently concluded first-quarter 2025, PSG revenues (contributed 44.6% to revenues) fell 26.2% year over year. AMG revenues (39.2% of revenues) declined 18.7% year over year, while ISG revenues (16.2% of revenues) saw a decline of 19.7% year over demand in the automotive sector due to geopolitical tensions and a slowdown in EV adoption has negatively impacted ON Semiconductor's growth. In first-quarter 2025, Automotive (52.7% of revenues) revenues fell 25.1% year over year, while Industrial (27.7% of revenues) end-market (including military, aerospace, and medical) revenues declined 16% year over year. However, AI data centers have evolved as a major growth market for ON Semiconductor. In the first quarter of 2025, AI data center revenues more than doubled year over year. The company is leveraging its silicon carbide and silicon-powered devices to gain traction. At the entry point of power into the data center, ON Semiconductor is benefiting from the transition to modular UPS systems with its EliteSiC power module solutions, delivering higher efficiency and power density than traditional silicon solutions. ON expects revenues from UPS to grow between 40% and 50% by 2025. ON Semiconductor Corporation price-consensus-chart | ON Semiconductor Corporation Quote ON Semiconductor is facing stiff competition from industry peers like Magnachip Semiconductor MX, NXP Semiconductors NXPI and Analog Devices ADI. In the year-to-date period, shares of Magnachip Semiconductor, NXP Semiconductors and Analog Devices have declined 8.4%, 7.5% and 0.9%, Devices is benefiting from strong momentum across the industrial and automotive end markets. Strong momentum across the EV space on the back of its robust Battery Management System solutions remains a tailwind. Meanwhile, NXP Semiconductors is benefiting from strong demand for electrification, AI-driven edge computing and secure connectivity solutions. Magnachip Semiconductor is capitalizing on the steady demand in the consumer electronics space, led by its focus on power and display solutions. Owing to reduced demand, ON expects low single-digit price cuts. This is negatively impacting revenues and gross margin. The demand is, however, not expected to pick up in the next few quarters due to global supply chain disruptions and uncertainty around tariff impositions. Hence, the growth outlook remains slow. Alongside, ON Semiconductor is facing the underutilization of its manufacturing capacity due to weak end-market demand. The utilized manufacturing capacity for the first quarter of 2025 remained at 60% and is expected to decline over the next quarter. Lower utilization has led to underabsorption of fixed costs, which is negatively impacting the margins and bottom line. In the first quarter of 2025, gross margin declined by 590 basis points (bps) year over year to 40%. Management expects approximately 900 bps of non-cash underabsorption charges for the second quarter. Both pricing pressure and lower utilization create a significant negative impact on gross margin. For the second quarter of 2025, ON Semiconductor expects revenues between $1.40 billion and $1.50 billion. Non-GAAP earnings for the second quarter of 2025 are envisioned between 48 cents per share and 58 cents per share. The Zacks Consensus Estimate for second-quarter 2025 revenues is pegged at $ 1.45 billion, suggesting a 16.48% decline from the year-ago quarter's reported consensus mark for earnings is pegged at 54 cents per share, implying a steep 43.75% decline from the year-ago quarter's reported figure. However, the earnings figure inched up by a penny over the past 30 days. ON Semiconductor is experiencing robust momentum in its Silicon Carbide (SiC) portfolio. In the first quarter of 2025, ON Semiconductor acquired Qorvo's SiC JFET assets, which strengthens its SiC offerings. For its fourth-gen Trench SiC MOSEFT, the company secured a major design win with a leading U.S. OEM for a PHEV platform. ON Semiconductor is targeting a 35-40% market share in the near future and has recently started seeing revival in the China market, with 50% of new EV models in China expected to have ON's SIC in it, thus signalling strong global Semiconductor's SiC and silicon-based intelligent power portfolio is being increasingly adopted in UPS systems, power supply units and battery backup units as they are engineered for high efficiency and high-density applications. Sic JFET and T10 trench MOSFET provide industry-leading performance by offering the lowest on-resistance and reducing switch losses, respectively. These high-performing solutions helped ON Semiconductor secure business with the three largest UPS providers, thus deepening market penetration. ON Semiconductor currently has a Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Analog Devices, Inc. (ADI) : Free Stock Analysis Report NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report Magnachip Semiconductor Corp. (MX) : Free Stock Analysis Report ON Semiconductor Corporation (ON) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
ON Semiconductor (NasdaqGS:ON) Posts 30% Price Surge Over Last Month Despite Q1 2025 Net Loss
ON Semiconductor has been actively engaging in a share buyback program, with a significant tranche completed that may have bolstered investor confidence. Despite reporting a net loss for the first quarter of 2025, alongside reduced sales figures, the company's stock price increased by 30% over the last month. This sharp rise contrasts the broader market's more modest 4% uptick, suggesting that ON's ongoing share repurchases, despite negative earnings news, may have contributed positively to investor sentiment and possibly influenced the significant share price movement within this timeframe. You should learn about the 2 weaknesses we've spotted with ON Semiconductor. Uncover the next big thing with financially sound penny stocks that balance risk and reward. The recent news of ON Semiconductor's share buyback program, despite the unfavorable earnings report, has seemingly influenced investor sentiment positively, leading to a notable rise in its share price. This upward movement contrasts with the company's performance over the past year, where it underperformed against the US Semiconductor industry's 18.5% return. Over a five-year period, however, ON Semiconductor's total return, including share price growth and dividends, was 195.67%, highlighting its stronger long-term performance. The current narrative points to ON Semiconductor's efforts to revitalize its growth through the Fab-Right strategy and expansion into silicon carbide technology, particularly in automotive and AI data centers. This could potentially translate into positive impacts on revenue and earnings forecasts. Analysts expect a moderate revenue growth of 4% and significant earnings growth of 33.5% annually over the next three years, indicating an optimistic outlook contingent on overcoming current challenges. The company's share price increase to US$38.51 still sits below the consensus price target of US$48.23 as of today, reflecting a 20.1% discount to the analysts' fair value estimation. While the analysts have varied expectations, with targets ranging from US$33.0 to US$72.12, the divergence suggests different perspectives on how ON Semiconductor's strategies will evolve. Investors should evaluate how the company's strategic initiatives in R&D and market expansion are likely to impact its financial outcomes relative to these targets. Review our historical performance report to gain insights into ON Semiconductor's track record. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:ON. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
14-05-2025
- Business
- Yahoo
ON Semiconductor (NasdaqGS:ON) Posts 30% Price Surge Over Last Month Despite Q1 2025 Net Loss
ON Semiconductor has been actively engaging in a share buyback program, with a significant tranche completed that may have bolstered investor confidence. Despite reporting a net loss for the first quarter of 2025, alongside reduced sales figures, the company's stock price increased by 30% over the last month. This sharp rise contrasts the broader market's more modest 4% uptick, suggesting that ON's ongoing share repurchases, despite negative earnings news, may have contributed positively to investor sentiment and possibly influenced the significant share price movement within this timeframe. You should learn about the 2 weaknesses we've spotted with ON Semiconductor. Uncover the next big thing with financially sound penny stocks that balance risk and reward. The recent news of ON Semiconductor's share buyback program, despite the unfavorable earnings report, has seemingly influenced investor sentiment positively, leading to a notable rise in its share price. This upward movement contrasts with the company's performance over the past year, where it underperformed against the US Semiconductor industry's 18.5% return. Over a five-year period, however, ON Semiconductor's total return, including share price growth and dividends, was 195.67%, highlighting its stronger long-term performance. The current narrative points to ON Semiconductor's efforts to revitalize its growth through the Fab-Right strategy and expansion into silicon carbide technology, particularly in automotive and AI data centers. This could potentially translate into positive impacts on revenue and earnings forecasts. Analysts expect a moderate revenue growth of 4% and significant earnings growth of 33.5% annually over the next three years, indicating an optimistic outlook contingent on overcoming current challenges. The company's share price increase to US$38.51 still sits below the consensus price target of US$48.23 as of today, reflecting a 20.1% discount to the analysts' fair value estimation. While the analysts have varied expectations, with targets ranging from US$33.0 to US$72.12, the divergence suggests different perspectives on how ON Semiconductor's strategies will evolve. Investors should evaluate how the company's strategic initiatives in R&D and market expansion are likely to impact its financial outcomes relative to these targets. Review our historical performance report to gain insights into ON Semiconductor's track record. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:ON. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Global News
12-05-2025
- Business
- Global News
Global stock markets surge as U.S. and China reach 90-day trade truce
Stocks are surging on Wall Street after China and the United States announced a 90-day truce in their trade war. They agreed to take down most of their tariffs that economists warned could start a recession and create shortages on U.S. store shelves. The S&P 500 was 2.7 per cent higher in early trading Monday. The Dow Jones Industrial Average jumped 981 points, or 2.4 per cent, and the Nasdaq composite was 3.7 per cent higher. Crude oil prices jumped because a global economy less weakened by tariffs would be hungrier for fuel. The value of the dollar climbed against other currencies and Treasury yields rose. The Toronto Stock Exchange also started the Monday trading day on positive ground gaining almost one per cent at the open, while the loonie dipped about a quarter of a cent compared to the stronger U.S. dollar. Story continues below advertisement A joint statement on Monday said that for a 90-day period, the U.S. will cut tariffs on Chinese goods to 30 per cent from as high as 145 per cent. China said its tariffs on U.S. goods will fall to 10 per cent from 125 per cent. The agreement to allow time for more talks followed weekend negotiations in Geneva, Switzerland, that the U.S. side said had made ' substantial progress.' 6:03 India and Pakistan ceasefire aided by 'very proactive' negotiators including U.S. Wall Street cheered the development with futures for the S&P 500 jumping 3.1 per cent, while futures for the Dow Jones Industrial Average rose 2.5 per cent. Futures for the Nasdaq, home to the biggest U.S. technology companies, soared 3.9 per cent. American microchip companies, which source much of the material needed for their semiconductors from China, were among the biggest gainers early Monday. ON Semiconductor, Micron and Broadcom all soared between six per cent and eight per cent. Nvidia rose 4.8 per cent. Story continues below advertisement Travel companies also enjoyed big gains, with American, Delta and United Airlines all up around seven per cent. Major cruise lines rose similarly. Get weekly money news Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday. Sign up for weekly money newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy Retailers, who get much of their inventory from China, also benefited from the announced tariff pause. Amazon was up 7.8 per cent and Best Buy jumped 10.4 per cent early. Pharmaceutical companies were among the few losers Monday after Trump said he planned to signed an executive order Monday that if implemented, could bring down the costs of some medications. The order Trump is promising will direct the Department of Health and Human Services to tie what Medicare pays for medications administered in a doctor's office to the lowest price paid by other countries. 2:10 U.S., China begin negotiation on easing trade war A big pharma trade group criticized the plan and Johnson & Johnson, Merck and Pfizer all tumbled around three per cent. Story continues below advertisement Can the trade truce last? The full impact on the complicated tariffs and other trade penalties enacted by Washington and Beijing remains unclear. Much depends on whether they will find ways to bridge long-standing differences during the 90-day suspension. But as trade envoys from the world's two biggest economies blinked, finding ways to pull back from potentially massive disruptions to world trade and their own markets, investors rejoiced. Oil prices also rallied, with U.S. benchmark crude oil gaining $2.48, more than four per cent to $63.50 per barrel. Brent crude, the international standard, added $2.39 to $66.30 per barrel. The U.S. dollar surged against the Japanese yen, trading at 148.06 Japanese yen, up from 146.17 yen. The euro fell to $1.1103 from $1.1209. In other stock trading, Tokyo's market closed before the joint statement was issued, gaining less than 0.1 per cent to 37,644.26. But Hong Kong's, which closes later, jumped three per cent to 23,558.11. Story continues below advertisement In Europe at midday, Germany's DAX gained 0.3 per cent and the CAC 40 in Paris added 1.3 per cent. Britain's FTSE 100 was 0.5 per cent higher. 1:44 Canada's jobless rate ticks up as Trump's tariffs cause cracks in labour market What else is fuelling the rally? Investors were also watching for developments in other flashpoints including clashes between India and Pakistan, the war in Ukraine and conflict in the Middle East. Story continues below advertisement The Sensex in Mumbai shot up 3.2 per cent after India and Pakistan agreed to a truce after talks to defuse their most serious military confrontation in decades. The two armies have exchanged gunfire, artillery strikes, missiles and drones that killed dozens of people. Pakistan's KSE 100 surged more than nine per cent and trading was halted for one hour following a spike driven by the ceasefire and an International Monetary Fund decision Friday to disburse about $1 billion of a bailout package for its battered economy. The Shanghai Composite Index picked up 0.8 per cent to 3,369.24. Chinese EV battery maker CATL, or Contemporary Amperex Technology Co., Ltd., said in a prospectus filed with the Hong Kong Stock Exchange that it plans to raise nearly $4 billion in a share listing. Elsewhere in Asia, the Kospi in Seoul gained 1.2 per cent to 2,607.33, Australia's S&P/ASX 200 climbed less than 0.1 per cent to 8,233.50, and Taiwan's Taiex gained one per cent. – With copy from Global News' Ari Rabinovitch
Boston Globe
12-05-2025
- Business
- Boston Globe
S&P 500 surges 2.7% after the US and China announce a 90-day truce in trade war
HONG KONG (AP) — U.S. futures surged Monday after the U.S. and China announced they were suspending for 90 days most of the sharp tariff hikes each has imposed since U.S. President Donald Trump began escalating his trade war. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up A joint statement on Monday said that for a 90-day period, the U.S. will cut tariffs on Chinese goods to 30% from as high as 145%. China said its tariffs on U.S. goods will fall to 10% from 125%. Advertisement The agreement to allow time for more talks followed weekend negotiations in Geneva, Switzerland, that the U.S. side said had made " substantial progress." Wall Street cheered the development with futures for the S&P 500 jumping 3.1%, while futures for the Dow Jones Industrial Average rose 2.5%. Futures for the Nasdaq, home to the biggest U.S. technology companies, soared 3.9%. American microchip companies, which source much of the material needed for their semiconductors from China, were among the biggest gainers early Monday. ON Semiconductor, Micron and Broadcom all soared between 6% and 8%. Nvidia rose 4.8%. Advertisement Travel companies also enjoyed big gains, with American, Delta and United Airlines all up around 7%. Major cruise lines rose similarly. Retailers, who get much of their inventory from China, also benefited from the announced tariff pause. Amazon was up 7.8% and Best Buy jumped 10.4% early. Pharmaceutical companies were among the few losers Monday after Trump said he planned to signed an executive order Monday that if implemented, could bring down the costs of some medications. The order Trump is promising will direct the Department of Health and Human Services to tie what Medicare pays for medications administered in a doctor's office to the lowest price paid by other countries. A big pharma trade group criticized the plan and Johnson & Johnson, Merck and Pfizer all tumbled around 3%. Also Monday, Texas power company NRG Energy said it will essentially double its generation capacity through a $12 billion cash and stock acquisition of natural gas facilities in the Northeast and Texas from LS Power Equity Advisors, an energy focused investment manager. Shares of NRG rose more than 9% early Monday. The full impact on the complicated tariffs and other trade penalties enacted by Washington and Beijing remains unclear. And much depends on whether they will find ways to bridge long-standing differences during the 90-day suspension. But as trade envoys from the world's two biggest economies blinked, finding ways to pull back from potentially massive disruptions to world trade and their own markets, investors rejoiced. Oil prices also rallied, with U.S. benchmark crude oil gaining $2.48, more than 4%, to $63.50 per barrel. Brent crude, the international standard, added $2.39 to $66.30 per barrel. Advertisement The U.S. dollar surged against the Japanese yen, trading at 148.06 Japanese yen, up from 146.17 yen. The euro fell to $1.1103 from $1.1209. In other stock trading, Tokyo's market closed before the joint statement was issued, gaining less than 0.1% to 37,644.26. But Hong Kong's, which closes later, jumped 3% to 23,558.11. In Europe at midday, Germany's DAX gained 0.3% and the CAC 40 in Paris added 1.3%. Britain's FTSE 100 was 0.5% higher. Investors were also watching for developments in other flashpoints including clashes between India and Pakistan, the war in Ukraine and conflict in the Middle East. The Sensex in Mumbai shot up 3.2% after India and Pakistan agreed to a truce after talks to defuse their most serious military confrontation in decades. The two armies have exchanged gunfire, artillery strikes, missiles and drones that killed dozens of people. Pakistan's KSE 100 surged more than 9% and trading was halted for one hour following a spike driven by the ceasefire and an International Monetary Fund decision Friday to disburse about $1 billion of a bailout package for its battered economy. The Shanghai Composite Index picked up 0.8% to 3,369.24. Chinese EV battery maker CATL, or Contemporary Amperex Technology Co., Ltd., said in a prospectus filed with the Hong Kong Stock Exchange that it plans to raise nearly $4 billion in a share listing. Elsewhere in Asia, the Kospi in Seoul gained 1.2% to 2,607.33. Australia's S&P/ASX 200 climbed less than 0.1% to 8,233.50. Taiwan's Taiex gained 1%.
