Latest news with #Onsemi
Yahoo
09-05-2025
- Business
- Yahoo
Onsemi, Lattice expect minimal direct tariff impacts
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Chipmakers Onsemi and Lattice Semiconductor Corp. both remain confident in their operational resilience in the face of tariffs, saying levies waged by the Trump administration aren't likely to have material impacts on their performances. In an earnings call Tuesday, Onsemi President and CEO Hassane El-Khoury highlighted the chipmaker's flexible and geographically diverse supply chain as pivotal in insulating the company from tariffs. Lattice, meanwhile, derives 80% of its revenue from outside the United States, which will likely mitigate any potential direct impacts of the duties, CFO Lorenzo Flores said on a separate earnings call Tuesday. Chipmakers across the industry are still bracing for potential sector-specific tariffs to come down from the Trump administration. Last month, the administration opened a Section 232 investigation into the national security implications of semiconductor imports — a precursor to possible future tariffs. Despite the looming threat of levies, Lattice is hoping for further recovery in the second quarter and latter half of the year, after seeing demand drop in recent months. Q1 revenue came in at $120.1 million, down 14.7% year over year. In the near-term, however, CEO Ford Tamer said the company shipped below true estimated demand last quarter "as we worked closely with customers to ensure alignment with their evolving product needs." Looking at the tariffs, Flores highlighted that many of Lattice's products never cross the U.S. border, instead relying on foundries in Japan, Korea and Taiwan, as well as testing and assembly capacity in Taiwan and Malaysia. "That said, we think it is prudent to work with our customers and distribution partners to mitigate the logistical and economic disruption from potential tariff regimes," Flores said. "The takeaway is that, based on available information, we expect the direct impact of tariffs on our business to be limited, but we are highly aware of potential indirect impacts." Onsemi, meanwhile, said it's leaning on its 19 global facilities, as well as its external network, to limit the impacts of tariffs. "Our expectation is that there will be minimal direct impact to our business," El-Khoury said during the earnings call. "At this time, we expect no major issues in servicing our global customer base and are assisting these customers to minimize their impact by optimizing our supply chains." Like Lattice, Onsemi has been navigating a period of revenue decline. The company's Q1 revenue totaled $1.45 billion, down 22.4% YoY due in part to sluggishness in the automotive sector. To better align with the lower demand, Onsemi cut its internal fab production capacity by 12% in Q1 and laid off 9% of its roughly 26,000-person workforce. The two actions are expected to save the company $25 million in Q2, CFO Thad Trent said on the call. "We will continue to rationalize our manufacturing footprint, driving gross margin expansion towards our long term target and providing greater leverage in our business model as the market recovers," Trent said. Recommended Reading GlobalFoundries, Analog Devices push diversification as tariffs loom 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
Entrepreneur
06-05-2025
- Business
- Entrepreneur
Onsemi Stock Confirms Bottom, But What's the Upside?
Onsemi's stock price correction reached bottom in April and is on track to begin rebounding in 2025, and it only needs a catalyst to drive it. This story originally appeared on MarketBeat Onsemi's (NASDAQ: ON) stock price action hit its bottom in late April and offered an attractive entry in May. The Q1 results weren't spectacular, with revenue contracting by 22%, but they were better than expected. Guidance was also raised above the analysts' consensus, and both align with an outlook for growth to resume next year. Greenshoots revealed by the company in its report and conference call indicate that the business is improving. [content-module:CompanyOverview|NASDAQ:ON] This semiconductor stock may take some time to regain traction and trend higher. Still, new lows are unexpected, and the upside potential is substantial, providing an attractive risk-to-reward scenario. Onsemi trades at a low 17x earnings, even lower when compared to the forward outlook, and has many tailwinds to support long-term growth. These include rapidly advancing automotive technology, industrial application of digital technology, AI, and the IoT. Each has a robust outlook for growth and is expected to accelerate in the coming quarters despite macroeconomic headwinds. Macroeconomic headwinds will hamper the rebound in 2025 but dissipate over time as global trade relations normalize. Analysts and Institutional Activity Mark Onsemi's Stock Price Bottom Analyst sentiment trends helped Onsemi's stock price fall to multi-year lows in 2025 and provide a catalyst for the market in Q2. The trends include a steadily declining consensus price target as reported by MarketBeat, offset by a firm Hold rating with bullish bias and an outlook for 45% of upside. The catalyst is in what the analysts do next. The Q1 results and Q2 guidance suggest an end to the reductions and a high likelihood for price target increases, a catalyst for rising share price action. As it is, Onsemi's stock price is bouncing from the analysts' low-end range, another factor suggesting this stock has reached its bottom. Assuming the analysts begin to reaffirm targets, the rebound in Onsemi stock will begin sooner rather than later and could increase this stock by double-digits by the year's end. Likewise, data from MarketBeat shows that institutions sold in Q1 2025 but reverted to buying in early Q2, a sign that this stock's decline had reached its end. Greenshoots Appears for Onsemi Despite Struggles in Q1 Onsemi struggled in Q1, with all end markets contracting. The weakness was worst in the PSG segment, which contracted by 26%, followed by a 20% decline in ISG and a 19% contraction in AMG. [content-module:MarketRank|NASDAQ:ON] The worst news is that margins were also significantly impacted, but not all the news is bad. Revenue and earnings are ahead of expectations, and the company's positioning efforts have significantly improved cash flow. Cash from operations topped $602 million, or more than 40% of revenue, while free cash flow (FCF) grew by more than 70% to $455 million. FCF is critical because Onsemi is a capital return machine that uses more than 60% of it to buy back shares. Share repurchases in Q1 were accelerated from trend, reducing the count by 1.9% sequentially and 3.5% compared to last year. The guidance is also good and sufficient to sustain the balance sheet health and capital return while aligning with an outlook for resumed growth in 2026. CEO Hassane El-Khoury and the company say they've scored critical wins across all end markets and are guiding for Q2 revenue near $1.45 billion at the midpoint. That's flat compared to Q1, with contraction slowing from 22% to 16%. Onsemi Builds Value for Investors Onsemi's balance sheet reflects the impact of divestitures, repositioning, and share buybacks, with equity down in Q1. Equity fell by roughly 1.6%, but the share count decline, cash flow improvement, and outlook for capital return sustainability offset the loss. The bottom line is that this business's leverage remains low and will continue to do so in 2025 and beyond. As its business rebounds and the share count steadily falls, this will build leverage for investors. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
Globe and Mail
28-04-2025
- Business
- Globe and Mail
Down Over 50%—Are These 2 Chip Stocks the Next NVIDIA?
With the market in correction territory, chip stocks generally have not avoided the carnage. The S&P 500 Index is down approximately 14% from its 52-week high as of the April 22 close, and the Invesco PHLX Semiconductor ETF (NASDAQ: SOXQ) is down around 35% from highs. Two lesser-known chip stocks— Semtech (NASDAQ: SMTC) and Onsemi (NASDAQ: ON) —have suffered much more, trading at discounts of more than 50% from their 52-week highs. However, these companies have significant opportunities to achieve long-term growth and could be strong buys given their depressed valuations. Semtech: Long-Term Tailwinds and Historically Low Valuation [content-module:CompanyOverview|NASDAQ:SMTC] Semtech is trading down massively from its 52-week high. The stock hit its high on January 22, but has dropped a whopping 69% from that level. This falling price comes amid a drastic improvement in the company's overall financial position. In its most recent quarter, revenue rose 30% year-over-year (YOY), and adjusted operating margin nearly doubled —from just over 9% in fiscal Q4 2024 to nearly 20% in fiscal Q4 2025. Additionally, the company's second-largest end market, infrastructure, saw 75% YOY growth. The infrastructure segment includes data center customers. Morgan Stanley analysts believe the market 'might not be fully appreciating Semtech's potential in the data center market.' This looks possible, maybe even understated, as Semtech is talking with 20 potential customers for its CopperEdge products. This includes hyperscalers, switch makers, and cable suppliers. As data centers grow larger and process more data, CopperEdge offers an important technological solution. In the company's largest end market, Industrial, its LoRa devices saw revenues rise 205% from the prior year quarter. This product is clearly resonating with customers. It has the potential to be a massive long-term growth driver as a key technology used in smart cities of the future. [content-module:Forecast|NASDAQ:SMTC] The stock is trading near its five-year lows when looking at its forward enterprise value to sales (EV/S) ratio. The figure sits at around 2.5x but has averaged 4.6x over the last five years. The current sentiment around Semtech is mixed, reflecting a balance between recent challenges, the uncertain economic environment, and ongoing optimism. Morgan Stanley placed a price target of $30 on SMTC stock, indicating upside of 22% over the next 12 months. However, the long-term opportunity for Semtech looks significantly larger, given its improving financial position and products with long-term tailwinds. Onsemi: Positioned for EV and Data Center Megatrends [content-module:CompanyOverview|NASDAQ:ON] Onsemi is another chip stock that has gotten absolutely battered. It is down nearly 56% from its 52-week high in July 2024. Onsemi primarily makes chips for auto and industrial markets. These markets have been working through an inventory glut, causing Onsemi to see negative revenue growth for six quarters in a row. However, Onsemi's strong profitability has remained despite this downturn. It still boasts an adjusted gross profit margin of around 45% and an adjusted operating margin of more than 25%. This positions the firm as one of the more profitable companies in the technology sector—impressive, given that Onsemi designs and also manufactures its chips. Lower sales can hit manufacturing companies hard, affecting their economies of scale. The company is targeting revenue growth of 10% to 12% through 2027 as well as a 40% operating margin. Onsemi sees itself as well-positioned to take advantage of ' fast-growing secular megatrends ' to drive long-term growth and increased profits. This includes increasing electric vehicle (EV) ownership. It is a leader in silicon carbide (SiC)-based chips that can benefit greatly from this trend. Onsemi also sees a big opportunity in its SiC Junction Field-Effect Transistors, which can be key in powering data centers. SiC chips offer exceptional power efficiency, making them ideal for use cases that require extensive electricity. [content-module:Forecast|NASDAQ:ON] The stock's forward price-to-earnings (P/E) ratio sits at just over 14x, solidly below its five-year average of over 18x. Overall, it is very difficult to say when the company's main end markets will return to growth, and more downside could be in store in 2025. However, Onsemi's profitability, depressed valuation, and technological leadership can allow it to win big when growth resumes. Analysts remain cautiously optimistic on Onsemi, with a mix of Buy and Hold ratings, and one Sell rating. The consensus p rice target of $63.52 implies a nearly 75% potential upside over the next 12 months. However, as the company's end markets stabilize, investor sentiment could shift quickly. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.
Yahoo
08-04-2025
- Business
- Yahoo
S&P 500 Gains and Losses Today: Index Reverses Early Gains Amid Tariff Worries
The S&P 500 fell 1.6% on Tuesday, April 8, 2025, as investors braced for new tariffs to take effect. Albemarle shares tumbled after UBS cut its price target on the lithium producer's stock. Shares of health insurers moved higher after the U.S. government announced Medicare payments would rise more than previously U.S. equities indexes fell Tuesday, reversing earlier gains as investors braced for new tariffs to take effect. After opening the session solidly in positive territory, the S&P 500 dropped later in the session to close 1.6% lower. The Dow slipped 0.8%, while the tech-heavy Nasdaq tumbled 2.2%. Shares of Albemarle (ALB), the world's largest lithium producer, suffered the steepest daily decline of any S&P 500 stock, plunging 12.6%. Tuesday's tumble came after analysts at UBS slashed their price target on the stock, suggesting elevated costs and potentially soft demand could hold back Albemarle's earnings. Solar technology firm Enphase Energy (ENPH) saw its shares plunge 11.2% amid pressure on the broader renewable energy sector as concerns about trade and global economic growth cloud the outlook for solar and other energy technologies. Shares of intelligent power and sensor chipmaker Onsemi (ON) fell 8.9%. The move lower followed a price target cut by analysts at KeyBanc, who pointed to softness in Onsemi's automotive end markets. The KeyBanc team pointed to a deterioration in demand from Tesla (TSLA), along with inventory reductions by other carmakers in the U.S. and Europe. Health insurance stocks received a boost after the Centers for Medicare & Medicaid Services announced government payments to Medicare insurers would rise more than previously expected. Humana (HUM) shares surged 10.7%, logging the top performance in the S&P 500. Shares of Aetna operator CVS Health (CVS) gained 5.9%, with the pharmacy giant also brightening its full-year outlook and naming a new CFO. Shares of defense contractors also pushed higher after the White House pledged to spend approximately $1 trillion on defense in fiscal 2026. Shares of aerospace and defense firms Lockheed Martin (LMT), General Dynamics (GD), and RTX (RTX) all posted gains of more than 2%. Constellation Energy (CEG) shares advanced 2.9% on Tuesday, clawing back a portion of their losses over the past week. Along with other nuclear generators, the company has drawn attention for its opportunity to power artificial intelligence data centers. Last year, Constellation signed an agreement to provide electricity to a Microsoft (MSFT) data center by restoring a unit of the Three Mile Island nuclear facility. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
30-03-2025
- Automotive
- Yahoo
The E-Fuse Kicks the Classic Blade-Style Fuse to the Curb
From the March/April 2025 issue of Car and Driver. Like Odor-Eaters in workout shoes, a fuse doesn't call attention to itself until it stops working. These circuit breakers have two states: letting power flow or abruptly interrupting that flow due to a spike in current. To fix your car in the event of the latter, you must first find the fuse itself and then attempt to remove the thing with the often uncooperative small tweezers an automaker provides for such extractions. But it doesn't have to be this way. Enter the e-fuse. All fuses deal in electricity, but here, the "e" prefix refers to the device's connected nature. E-fuses, which are placed into a computer chip, function like a mash-up of a fuse and a relay (basically an electrically powered switch) but with way more brains. Because e-fuses react more quickly to over-current events, the wiring on the output side isn't subject to large current spikes and thus can be less robust, saving weight, space, and money. Since the computers are always watching, voltage and current monitoring takes place in real time, allowing a vehicle to log any incidents for later troubleshooting. An e-fuse's controller can diagnose issues on the fly and remedy them in the background with a self-healing reset. At their inception, the Rivian R1T and R1S relied on ordinary fuses. However, as part of an update for 2025, Rivian overhauled the models' electrical architecture, jettisoning blade-style fuses for more than 200 e-fuses that now control various vehicle subsystems. (A few old-school fuses remain because of packaging necessities.) Rivian isn't the only automaker embracing e-fuses; Tesla, for instance, also uses them. E-fuses have allowed Rivian to reduce the number of task-specific electronic control units by switching from a domain to a zonal architecture. Instead of grouping functions together by related purpose (window regulators, for example) and wiring them to a central controller, zonal architecture decentralizes things by placing the multi-function controllers into specific vehicle "zones." Onsemi, a manufacturer of this tech, offers a four-channel e-fuse that can monitor up to a quartet of power streams at once or combine inputs and outputs to offer more current protection. Onsemi's e-fuse can also oversee 12-, 24-, 36-, and 48-volt sources, a valuable versatility when not all subsystems use the same voltage. As expected of something with an integrated circuit, an e-fuse carries a higher up-front cost than its metal-blade counterpart. But in addition to better diagnostic coverage, e-fuses provide more precise power control, helping prevent the phantom drain from systems functioning in a low-power "sleep" mode. E-fuses also allow for changes—either during development or down the line as part of an over-the-air update—to be a true zero-touch proposition. And best of all, they never need to be replaced. Good riddance to bad tweezers. You Might Also Like Car and Driver's 10 Best Cars through the Decades How to Buy or Lease a New Car Lightning Lap Legends: Chevrolet Camaro vs. Ford Mustang!
