We recently published a list of Billionaire Glenn Russell Dubin’s 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where ON Semiconductor Corporation (NASDAQ:ON) stands against Billionaire Glenn Russell Dubin’s other stock picks with huge upside potential.

Glenn Russell Dubin is one of the industry’s most experienced hedge fund managers, best known as the co-founder of Highbridge Capital Management, a multi-strategy investment business he founded with Henry Swieca in 1992. Before being bought by JPMorgan Chase in 2004, the firm quickly rose to prominence as one of Wall Street’s most sophisticated hedge funds. As of March 2024, Highbridge Capital manages more than $7.1 billion in discretionary assets and has a focused exposure to growth industries.

Dubin has long been involved in basic research and multi-asset investing through Highbridge and his private investment firm, Dubin & Company. His portfolio demonstrates a high-conviction strategy, with the top ten holdings accounting for more than 40% of reported 13F equities. Dubin’s top stock picks frequently coincide with broader macroeconomic themes, such as monetary easing, capital market expansion, and industrial revival, making them excellent bets for long-term investors looking for asymmetric risk-reward ratios.

The background for these investments is especially attractive. Financial markets rebounded strongly in 2024, with financial equities up more than 30% by the end of the year, owing to lower inflation, lower interest rates, and strong investor sentiment. Even if the United States’ GDP growth is expected to fall from 2.7% in 2024 to 1.5% in 2025, hopes of Fed rate cuts and a more stable regulatory environment are keeping financial industry momentum alive. Meanwhile, growing corporate refinancing needs and record-high consumer debt are steering capital into private credit and asset-backed lending—areas where Highbridge has traditionally excelled.

The industrial sector is also experiencing a significant revival, with a 26% increase in 2024 driven by demand for reshored manufacturing, clean energy buildout, and infrastructure construction. With only a quarter of the $1.9 trillion in planned North American infrastructure projects underway, there is still enormous growth potential. At the same time, reduced interest rates are expected to boost housing activity, and aerospace demand is expected to rise as airlines revamp their aged fleets. These macroeconomic drivers continue to provide appealing entry points for cyclical names with long-term upside.

Tariff concerns have increased volatility in the equity markets, particularly in light of proposed higher tariffs on steel and aluminum imports. However, other investors see this as a temporary disruption that could eventually benefit domestic manufacturers and capital goods industries. In reality, leading market commentators argue that predictions of a fresh wave of trade protectionism are exaggerated, with underlying fundamentals remaining strong across major value industries.

In that scenario, this may be a good time to follow experienced managers such as Glenn Dubin. As markets reset and valuations in banking and industrial stocks decline from their 2024 highs, the opportunity to purchase into structurally good companies at a discount is wide open. Highbridge Capital’s recent bets indicate trust in sectors that are not only rebounding but evolving, and these top stock picks might provide considerable upside as the market rebalances in 2025.

Methodology

To compile a list of Billionaire Glenn Russell Dubin’s 10 Stock Picks with Huge Upside Potential, we studied Greenlight Capital’s Q4 2024 13F filings to identify billionaire Glenn Russell Dubin’s stock picks with the most upside potential. We evaluated the firms in ascending order of upside potential. These stocks are also popular with elite hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

ON Semiconductor Corporation (NASDAQ:ON) 

Number of Hedge Fund Holders: 52

Upside Potential: 45.29%

ON Semiconductor Corporation (NASDAQ:ON) is a major provider of intelligent power and sensing technology, serving the automotive, industrial, and cloud power markets worldwide. The company operates in three major segments: Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group, offering semiconductor solutions for electric vehicles, renewable energy, and data centers.

ON Semiconductor Corporation (NASDAQ:ON) announced $1.45 billion in revenue for Q1 2025, ending April 4, exceeding the midpoint of its guidance. Non-GAAP earnings per share were $0.55, which was higher than expected, while free cash flow rose 72% year-over-year to $455 million, representing 31% of revenue. However, the gross margin fell sequentially by 530 basis points to 40% as a result of automotive sector deterioration and price changes. The company repurchased $300 million in shares, representing 66% of its quarterly free cash flow.

Looking ahead, ON Semiconductor Corporation (NASDAQ:ON) anticipates Q2 revenue of $1.4 billion to $1.5 billion and EPS of $0.48-$0.58. The company expects strong growth in its industrial and “other” areas, with plans to return 100% of free cash flow to shareholders and maintain a 25-30% free cash flow margin this year. These proactive efforts, together with a strong position in AI infrastructure and silicon carbide EV solutions, enable the company’s long-term growth story.

ON Semiconductor Corporation (NASDAQ:ON) is part of Glenn Russell Dubin’s stock portfolio, with a $53.39 million stake accounting for 1.99% of his total holdings, indicating a strong belief in the company’s future growth prospects.

Overall, ON ranks 5th on our list of Billionaire Glenn Russell Dubin’s stock picks with huge upside potential. While we acknowledge the potential of ON, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ON but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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