Pocket Option
App for

How to Buy ON Semiconductor Corporation (ON) Shares - Investment in ON Semiconductor Corporation (ON) Stock

19 August 2025
6 min to read
How to buy ON Semiconductor Corporation (ON) shares – Investment in ON Semiconductor Corporation (ON) stock

Thinking about tapping into the semiconductor revolution? ON Semiconductor Corporation (ticker: ON) represents a fascinating opportunity at the intersection of automotive electrification and AI infrastructure. This company powers everything from electric vehicles to data centers, making it a critical player in tomorrow's technology landscape. We'll explore why 2025 could be the perfect entry point for savvy investors.

📈 Current Market Position and Entry Timing

As of August 19, 2025, ON Semiconductor Corporation (ON) trades at $47.66 on NASDAQ. The stock has been navigating turbulent waters, but current levels present intriguing opportunities for patient investors.

Critical Date Alert: Mark October 27, 2025 on your calendar. This is when ON Semiconductor releases its Q3 earnings report, and historically, these events create significant price movements. The previous earnings on August 4, 2025 saw the stock react with notable volatility despite mixed results.

Historical Earnings Impact Analysis

Looking at recent earnings patterns reveals valuable insights for timing your entry:

Date Event Price Reaction Key Takeaway
Aug 4, 2025 Q2 Earnings -3.2% (week after) Missed EPS but beat revenue
May 5, 2025 Q1 Earnings -8.1% (week after) Restructuring charges hurt
Feb 10, 2025 Annual Results +5.3% (week after) Strong guidance boosted sentiment
Nov 4, 2024 Q3 Earnings +2.8% (week after) Automotive segment strength
Aug 6, 2024 Q2 Earnings -4.2% (week after) Inventory concerns weighed
May 8, 2024 Q1 Earnings +6.1% (week after) Silicon carbide demand surge

The pattern shows that while ON Semiconductor occasionally misses earnings expectations, the stock often finds support at current levels and rebounds when automotive or industrial demand signals improve.

📊 6-Month Performance Deep Dive

ON Semiconductor has experienced a challenging first half of 2025, but the story isn’t as bleak as the headline numbers suggest:

  • February 2025: $58.20 – Started the year with optimism about EV adoption
  • March 2025: $52.80 – First signs of automotive inventory correction
  • April 2025: $49.40 – China EV production delays hit sentiment
  • May 2025: $45.10 – Q1 earnings disappointment with restructuring charges
  • June 2025: $47.80 – Bottom formation and slight recovery
  • July 2025: $50.60 – NVIDIA partnership announcement provided boost
  • August 2025: $47.66 – Current consolidation phase

The 18.1% decline year-to-date masks some important nuances. The stock found strong support around $45 and has been building a base for potential recovery. The partnership with NVIDIA for 800 VDC power architectures in July provided a meaningful catalyst that could bear fruit in coming quarters.

🔮 Price Forecast: 2025-2030 Outlook

Based on current analyst projections and industry trends, here’s what to expect:

  • 2025 Year-End: $55-60 range (15-25% upside from current levels)
    – Rationale: Inventory normalization in automotive sector + AI data center demand
  • 2026 Target: $70-75 (47-57% total return potential)
    – Drivers: Full benefit of NVIDIA collaboration + EV market recovery
  • 2028 Projection: $90-100 (89-110% appreciation)
    – Catalysts: Silicon carbide dominance + autonomous vehicle adoption
  • 2030 Vision: $120+ (150%+ long-term growth)
    – Foundation: Electrification megatrend + AI infrastructure buildout

Verdict: STRONG BUY for long-term investors. Current valuation discounts near-term challenges while ignoring massive structural growth opportunities.

⚠️ Risk Assessment: What Could Go Wrong

Major Risk Factors

  • Geopolitical Tensions: US-China trade restrictions could impact 32% of global semiconductor production reliant on vulnerable supply chains (PwC Climate Risk Report)
  • Inventory Overhang: Automotive sector inventory correction could persist through 2025, affecting near-term revenue
  • Competition Intensification: Rivals like NXP Semiconductors are gaining market share in key segments
  • Climate Supply Risks: 58% of global semiconductor production could face copper supply disruptions by 2050 due to climate change

Positive Catalysts Working in Your Favor

  • NVIDIA Partnership: The July 2025 collaboration on 800 VDC power architectures positions ON perfectly for AI data center growth (AI Invest Report)
  • EV Market Recovery: China’s electric vehicle production is expected to accelerate in late 2025, benefiting ON’s automotive segment
  • Valuation Opportunity: Trading at 28% discount to fair value according to Morningstar analysis
  • Silicon Carbide Leadership: ON controls significant IP in next-generation power management technology

📰 Recent News Analysis: Practical Implications

The past six months have been eventful for ON Semiconductor, with several developments that traders should understand:

NVIDIA Power Architecture Deal (July 2025)

This wasn’t just another partnership announcement. ON Semiconductor will provide critical power conversion solutions for NVIDIA’s AI data centers, addressing the massive energy demands of generative AI. This positions ON at the forefront of the AI infrastructure boom.

Xiaomi Electric Vehicle Connection

While not a direct partnership, NVIDIA’s chips power Xiaomi’s YU7 and SU7 electric vehicles (AI Invest Coverage). Since ON partners with NVIDIA, there’s indirect exposure to the growing Chinese EV market.

Q2 Earnings Resilience (August 2025)

Despite missing EPS estimates by $0.01, revenue of $1.47 billion exceeded expectations by 3.1%. More importantly, the company maintained strong R&D investment at 8.65% of revenue, focusing on future technologies.

🎯 Beginner Trader Action Plan

What to Do Today:

  1. Start Small: Begin with a 2-3% portfolio allocation – enough to matter if right, not enough to hurt if wrong
  2. Use Dollar-Cost Averaging: Buy $100-200 weekly over next month to average into position
  3. Set October Earnings Alert: Plan to add more if post-earnings dip occurs (historical pattern suggests good entry)
  4. Diversify Properly: ON should be part of a broader semiconductor/tech allocation, not a standalone bet

Humorous Reality Check: “Trading ON stock is like dating in today’s world – you need patience through the awkward phases because when the chemistry finally works, it’s totally worth the wait!”

✅ How to Buy ON Semiconductor Corporation (ON) Shares – Step by Step

Step Action Why It Matters
1 Choose Your Platform Ensure it offers NASDAQ access and reasonable commission structure
2 Complete Account Funding Start with amount you’re comfortable potentially losing while learning
3 Search “ON” Ticker Use the exact symbol, not company name searches
4 Select Order Type Use limit orders to control entry price; avoid market orders
5 Determine Position Size Calculate based on risk tolerance (1-3% of portfolio typically)
6 Set Price Alerts Monitor key levels: $45 support, $55 resistance
7 Review Order Details Double-check quantity, price, and order type before confirming
8 Execute Purchase Stay disciplined – don’t chase if price moves away
9 Document Trade Rationale Write down why you bought and under what conditions you’d sell
10 Monitor Performance Review weekly, but avoid emotional daily checking

💡 Why Pocket Option Makes Sense for ON Trading

For investors looking to build positions in companies like ON Semiconductor, Pocket Option offers several advantages that align perfectly with today’s market environment:

  • Minimum Deposit Flexibility: With just $5 required to start, you can test strategies with ON stock without committing significant capital upfront. This is ideal for learning position sizing and risk management.
  • Rapid Account Verification: The 1-minute KYC process means you can respond quickly to market opportunities like post-earnings dips or breaking news events affecting semiconductor stocks.
  • Diverse Withdrawal Options: Over 100 withdrawal methods ensure you can access profits from successful ON trades through your preferred payment channel.

The platform’s user-friendly interface makes monitoring ON’s technical levels and fundamental developments straightforward, even for those new to semiconductor investing.

🏢 ON Semiconductor: 2025 Company Snapshot

ON Semiconductor Corporation (operating as onsemi) stands as a critical infrastructure provider in the global technology ecosystem. Headquartered in Scottsdale, Arizona with 26,000 employees across 20+ countries, the company specializes in intelligent power and sensing solutions that enable everything from electric vehicles to AI data centers.

The company maintains a 2.38% market share in the technology sector with particular strength in power management, discrete semiconductors, and image sensors. Their recent focus on silicon carbide technology positions them perfectly for the electric vehicle revolution and energy-efficient computing demands.

2025 Interesting Fact: ON Semiconductor’s partnership with NVIDIA isn’t just about chips – they’re helping solve the massive energy consumption problem of AI data centers. Their 800 VDC power architecture technology could reduce data center energy costs by up to 30%, making AI more sustainable and affordable for widespread adoption.

FAQ

Is now a good time to buy ON Semiconductor stock?

Current levels around $47 represent attractive entry points for long-term investors. The stock trades at a discount to fair value while positioned for structural growth in EVs and AI infrastructure.

What's the biggest risk with investing in ON?

Geopolitical tensions affecting semiconductor supply chains pose the most significant near-term risk. However, the company's diverse manufacturing footprint helps mitigate this concern.

How does the NVIDIA partnership benefit ON Semiconductor?

It provides immediate revenue opportunities in AI data center power management and enhances ON's technological credibility for future collaborations in high-growth markets.

What price target should I expect for ON stock in 2025?

Conservative analysts project $55-60 by year-end, representing 15-25% upside from current levels based on automotive recovery and AI demand growth.

How often does ON Semiconductor pay dividends?

The company currently does not pay regular dividends, preferring to reinvest cash flow into R&D and strategic initiatives to drive future growth rather than provide immediate income returns.

User avatar
Your comment
Comments are pre-moderated to ensure they comply with our blog guidelines.