Here’s How Tariff Policy Impacted ON Semiconductor (ON)

Columbia Threadneedle Investments, an investment management company, released its “Columbia Seligman Global Technology Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. During the first period, the U.S. equity market declined and underperformed compared to its global developed-market counterparts.  The fund’s Institutional Class shares returned -12.71% in the quarter, compared to –11.93% return for the MSCI World Information Technology Index-Net. In addition, you can check the fund’s top 5 holdings for its best picks for 2025.

In its first-quarter 2025 investor letter, Columbia Seligman Global Technology Fund highlighted stocks such as ON Semiconductor Corporation (NASDAQ:ON). ON Semiconductor Corporation (NASDAQ:ON) provides intelligent sensing and power solutions. The one-month return of ON Semiconductor Corporation (NASDAQ:ON) was 25.15%, and its shares lost 20.81% of their value over the last 52 weeks. On June 25, 2025, ON Semiconductor Corporation (NASDAQ:ON) stock closed at $53.74 per share, with a market capitalization of $22.457 billion.

Columbia Seligman Global Technology Fund stated the following regarding ON Semiconductor Corporation (NASDAQ:ON) in its Q1 2025 investor letter:

“The fund maintained overweight positions relative to the benchmark in semiconductor companies Broadcom, ON Semiconductor Corporation (NASDAQ:ON) and Marvell Technology, all of which detracted from performance relative to the fund’s benchmark. ON Semiconductor’s production has historically been tied to the automotive sector, and the forecast for car and truck sales remained uncertain, given the likelihood of price increases on newly manufactured vehicles due to recent U.S. tariff announcements. If the new administration maintains its stance on large-scale reciprocal tariffs around the globe, the automotive market is likely to see large price increases that get passed along to consumers.”

An engineer analyzing a complex engineering schematic while surrounded by equipment and tools used in the development of optical sensing solutions.

ON Semiconductor Corporation (NASDAQ:ON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held ON Semiconductor Corporation (NASDAQ:ON) at the end of the first quarter, which was 52 in the previous quarter. ON Semiconductor Corporation (NASDAQ:ON) reported revenue of $1.45 billion in Q1 2025, exceeding the midpoint of its guidance. While we acknowledge the potential of ON Semiconductor Corporation (NASDAQ:ON) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered ON Semiconductor Corporation (NASDAQ:ON) and shared billionaire Glenn Russell Dubin’s stock picks with huge upside potential. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of ON as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.