We came across a bullish thesis on ON Semiconductor Corporation on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on ON. ON Semiconductor Corporation’s share was trading at $69.68 as of February 25th. ON’s trailing and forward P/E were 46.42 and 17.01, respectively according to Yahoo Finance.
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ON Semiconductor Corporation provides intelligent sensing and power solutions in Hong Kong, Singapore, the United Kingdom, the United States, and internationally. ON is positioned as a differentiated semiconductor leader through its focus on gallium nitride (GaN) and silicon carbide (SiC) technologies rather than traditional silicon-based chips.
These advanced materials enable higher voltage tolerance, greater thermal performance, and superior power density, making ON’s solutions critical for intelligent power management, sensing, and high-efficiency systems across electric vehicles, industrial automation, and energy infrastructure. SiC, in particular, is becoming foundational in advanced image sensors, robotics, medical imaging, smart grids, and next-generation power systems, while adoption in data centers and networking continues accelerating, with AI-driven demand adding further momentum.
Despite cyclical softness in 2025 among automakers, renewable energy firms, and industrial customers, ON Semiconductor Corporation has demonstrated financial resilience and remains strategically aligned with high-growth secular markets. The company is exposed to a $15.5 billion EV opportunity growing 25% annually, a $9.1 billion factory automation market expanding 8%, and a $7.8 billion energy infrastructure segment growing 18%. Additional catalysts include advanced driver-assistance systems, AI data centers, and EV charging infrastructure, contributing to a total addressable market of approximately $44 billion growing at 18% annually.
With leadership in SiC and sensing solutions, improving end-market conditions expected in 2026, and a capital allocation policy that returned 100% of free cash flow to shareholders through buybacks in 2025, ON represents a compelling bullish opportunity. As macro headwinds ease and execution continues, the company is well positioned for significant multiple expansion and earnings growth over the next five years.
Previously, we covered a bullish thesis on ON Semiconductor Corporation (ON) by Charly AI in January 2025, which highlighted the company’s positioning in EV and energy markets, undervaluation at 13x P/E, and recovery potential by late 2025. ON’s stock price has appreciated by approximately 25.30% since our coverage. @MoneyShow shares a similar view but emphasizes on GaN/SiC technology leadership.
ON Semiconductor Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held ON at the end of the third quarter which was 50 in the previous quarter. While we acknowledge the risk and potential of ON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ON and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
