10 Best Semiconductor Stocks to Buy Heading into 2026

4. ON Semiconductor Corporation (NASDAQ:ON)

Number of Hedge Fund Holders: 45

Average Upside Potential: ~22.4%

ON Semiconductor Corporation (NASDAQ:ON) is one of the best Semiconductor Stocks to Buy Heading into 2026. On November 24, Morgan Stanley analyst Joseph Moore lifted the price target on the company’s stock to $56 from $55, while keeping an “Equal Weight” rating, as reported by The Fly.

The analyst noted the company’s recent 8-K filing in which management approved recognition of additional pre-tax non-cash impairment and accelerated depreciation charges of between $200 million and $300 million. The impairment and accelerated depreciation charges are for long-lived assets associated with investments in manufacturing assets at the company’s certain manufacturing facilities.

As per the management, such charges would reduce the company’s recurring depreciation expense in an amount estimated to be $10 million – $15 million in 2026. The analyst believes that the incremental impairments are most likely related to ON Semiconductor Corporation (NASDAQ:ON)’s Silicon Carbide manufacturing assets.

In a different development, it was announced that ON Semiconductor Corporation (NASDAQ:ON)’s revenue came in at $1.5 billion and $1.76 billion for the quarters ended October 3, 2025, and September 27, 2024, respectively, reflecting a 12% YoY decline, with revenue from PSG falling ~11% YoY.

Its diluted EPS stood at $0.63 in Q3 2025 as compared to $0.41 in Q2 FY 2025 on a GAAP basis, as ON Semiconductor Corporation (NASDAQ:ON) saw continued signs of stabilization throughout its core markets, and positive growth in AI.

ON Semiconductor Corporation (NASDAQ:ON) offers intelligent sensing and power solutions.