10 Cheap Semiconductor Stocks to Buy Now

3. ON Semiconductor Corporation (NASDAQ:ON)

Number of Hedge Fund Holders: 52 

P/E: 10.31

ON Semiconductor Corporation (NASDAQ:ON) headquartered in Scottsdale, AZ, delivers intelligent power and sensing solutions, focusing on automotive and industrial markets. Operating through Power Solutions Group (PSG), Analog and Mixed-Signal Group (AMG), and Intelligent Sensing Group (ISG), the company continues to innovate.

In March, ON Semiconductor Corporation (NASDAQ:ON) launched the Hyperlux ID family—the industry’s first real-time indirect time-of-flight (iToF) sensor. Offering long-range depth sensing up to 30 meters and real-time 3D imaging, Hyperlux ID combines visual and depth data in one compact device, addressing limitations of traditional iToF sensors. Additionally, onsemi introduced its first 1200V silicon carbide (SiC) MOSFET-based SPM 31 IPMs, delivering industry-leading efficiency, thermal performance, and system cost advantages for industrial inverter applications.

Financially, ON Semiconductor Corporation (NASDAQ:ON) reported $7.08 billion in 2024 revenue (down 14% YoY) and $1.57 billion in net income (down 28% YoY). Despite a strong 170% five-year return, near-term outlooks are cautious. B. Riley downgraded ON Semiconductor Corporation (NASDAQ:ON) to “Neutral” from “Buy,” cutting the price target to $41, citing weaker auto and industrial demand. Still, analyst consensus sees a median price target of $55, offering 39% upside potential. Institutional ownership remains strong at 104.64%, signaling confidence in ON Semiconductor Corporation (NASDAQ:ON)’s long-term strategic positioning.