With a market cap of $16.2 billion, ON Semiconductor Corporation (ON) is a global provider of intelligent sensing and power semiconductor solutions. Operating through its Power Solutions, Analog and Mixed-Signal, and Intelligent Sensing segments, it delivers products such as SiC components, CMOS image sensors, power management ICs, and custom ASICs for automotive, industrial, and mobile applications.

Shares of the Scottsdale, Arizona-based company have significantly underperformed the broader market over the past 52 weeks. ON has dipped 45.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 10.2%. On a YTD basis, shares of ON are down 39.1%, compared to SPX’s 3.9% decrease.

Narrowing the focus, the semiconductor components maker has also lagged behind the SPDR S&P Semiconductor ETF's (XSD) 10.7% decline over the past 52 weeks. 

Despite beating Q1 2025 expectations with adjusted EPS of $0.55 and revenue of $1.45 billion, ON Semiconductor shares fell 8.4% on May 5 due to a steep 22% year-over-year revenue decline. The Q2 revenue forecast of $1.4 billion - $1.5 billion, while above consensus at the midpoint, failed to ease investor concerns over sustained margin pressures and economic headwinds from new U.S. auto tariffs. Additionally, the scrapped $6.9 billion bid for Allegro MicroSystems and announcement of 2,400 global layoffs further fueled worries.

For the current fiscal year, ending in December 2025, analysts expect ON’s adjusted EPS to decline 38.2% year-over-year to $2.46. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion. 

Among the 30 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 14 “Strong Buy” ratings, one “Moderate Buy,” 13 “Holds,” one “Moderate Sell,” and one “Strong Sell.”

This configuration is less bullish than three months ago, with 16 “Strong Buy” ratings on the stock.

On May 6, BofA Securities cut ON’s price target to $46 due to expected margin pressure and higher operating expenses, though it kept a “Buy” rating citing strong free cash flow and emerging industrial and EV demand. FY2025 and FY2026 EPS estimates were reduced to $2.27 and $2.75, respectively.

As of writing, ON is trading below the mean price target of $54.44. The Street-high price target of $91.40 implies a potential upside of nearly 138% from the current price levels.