Billionaire Michael Platt’s 10 Stock Picks with Huge Upside Potential

4. ON Semiconductor Corporation (NASDAQ:ON)

BlueCrest Capital Management’s Q4 Stake: $1.1 million

Upside Potential as of April 29: 42.95%

Number of Hedge Fund Holders: 52

ON Semiconductor Corporation (NASDAQ:ON) is an American semiconductor manufacturing company that produces various components, primarily for the electric vehicle and industrial end markets. Some of the company’s products include advanced MOSFETs, image sensors, and Silicon Carbide technology (EliteSiC).

On April 17, Stifel analysts revised their outlook for ON Semiconductor Corporation (NASDAQ:ON), lowering the 12-month price target from $52 to $42, while maintaining a Hold rating on the company. The change reflects worries about the overall macroeconomic climate, as well as specific issues in the automotive sector, which is an essential market for the company. In addition to the automotive sector’s impact, ON Semiconductor’s gross margins are under pressure. While the company maintained a decent gross margin, analysts observed that its fabrication facilities are currently underused, which is negatively impacting margins in the short term.

In addition, ON Semiconductor Corporation (NASDAQ:ON) dropped its plan to acquire Allegro MicroSystems, instead focusing on increasing shareholder value through its existing share repurchase program. This move comes after ON Semiconductor Corporation (NASDAQ:ON) assessed that there was no viable road ahead with Allegro’s Board of Directors. The company intends to focus on its core growth objectives, notably in the automotive, industrial, and AI data center sectors.