The Value and Future Prospects of ON Semiconductor in the Chip Industry
Tuesday, 14 May 2024, 13:45
Overview
ON Semiconductor, a key player in silicon carbide (SiC) power chips, is in a phase of transition with strategies focusing on advanced chip manufacturing.
Current State
- Stock Performance: ON Semiconductor is at a 52-week low, reflecting challenges in the EV market.
- Financial Reshuffle: CEO El-Khoury's restructuring efforts have led to improved profit margins.
- Industry Challenges: Declining revenue and earnings as EV and industrial chip demand slump.
Future Outlook
- Value Proposition: Despite near-term struggles, ON Semiconductor's growth in power chips positions it well for future demand.
- Revenue Expectation: Management forecasts sustained growth targets until 2027, backed by strong demand.
- Investment Consideration: With a focus on power chips & sensors, ON Semiconductor presents a compelling long-term investment opportunity.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.