Valued at $27.6 billion by market cap, ON Semiconductor Corporation (ON) is a global leader in the semiconductor industry. Headquartered in Scottsdale, Arizona, the company provides a diverse portfolio of innovative products and solutions that serve key markets such as automotive, industrial, and communications.

Companies valued at over $10 billion are often categorized as “large-cap stocks,” a distinction ON Semiconductor fits this category through its strong market position. ON Semiconductor’s commitment to driving energy efficiency, enabling sustainable technologies, and delivering cutting-edge semiconductor solutions highlights its resilience, adaptability, and capacity to thrive in a rapidly evolving and increasingly electrified global landscape.

ON Semiconductor shares are down 24.7% from their 52-week high of $86.10, achieved on Dec. 27, 2023. Over the past three months, the stock has declined 11.7%, significantly underperforming the broader Dow Jones Industrials Average’s ($DOWI) marginal gains over the same time frame.

Over the past 52 weeks, ON stock has dropped 23.5% and is down 22.4% on a YTD basis, significantly underperforming the Dow's YTD growth of 12.3% and its 12.7% return over the past year.

ON has demonstrated bearish momentum, remaining below its 50-day and 200-day moving averages over the past year, with a few fluctuations.

ON Semiconductor saw its stock decline by over 4% on Dec. 18, contributing to a broader selloff in chip stocks.

On Oct. 28, ON Semiconductor delivered its Q3 earnings results, prompting a 3.4% increase in its stock in the subsequent trading session. Its adjusted EPS came in at $0.99, a 28% decline year-over-year, yet exceeding the consensus estimate of $0.97. Additionally, adjusted revenue came in at $1.76 billion, reflecting a 19.2% year-over-year decrease but narrowly surpassing Wall Street expectations of $1.75 billion.

The company has provided its fourth-quarter 2024 guidance, projecting revenue in the range of $1.71 billion to $1.81 billion and non-GAAP diluted earnings per share between $0.92 and $1.04.

Highlighting the contrast in performance, ON's competitor, STMicroelectronics N.V. (STM), has underperformed the stock. STM has declined 51.2% on a YTD basis and 51.5% over the past year.

Despite its recent weak price action, analysts are cautiously optimistic about ON Semiconductor. The stock has a consensus "Moderate Buy" rating from 31 analysts, with a mean price target of 86.67, which indicates a potential upside of 33.8% from its current level.