ON Semiconductor: The Rally Was Impressive - Wait And See For Now

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Juxtaposed Ideas


  • ON has definitely outperformed expectations with its stellar FQ3'22 call and, consequently, the tremendous 49.74% rally since rock-bottom levels in early July 2022.
  • However, this is the time to stop and see how things go, especially given the massive pessimism witnessed over the past few days, digesting some of the Powell dovish joy.
  • Meanwhile, conservative investors may want to take some gains off the table at this peak, while coming back in again at the next dip.
  • There will be more chances to load up through 2023, as the terminal rates are speculatively raised above 6%. We'll see.

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Investment Thesis

ON YTD Stock Price

ON YTD Stock Price

Seeking Alpha

ON Semiconductor (NASDAQ:ON) has done very well indeed, with a 60.22% and $5.3B QoQ expansion in the long-term supply agreements to $14.1B by FQ3'22. Its intelligent power and sensing solutions segment, comprising automotive, renewable energy, and industrial

ON Gross Margin Expansion

S&P Capital IQ

ON Projected Revenue, Net Income ( in billion $ ) %, EBIT %, EPS, and FCF %

S&P Capital IQ

ON 5Y P/E Valuations

S&P Capital IQ

This article was written by

Juxtaposed Ideas profile picture
I am a full-time analyst interested in a wide range of stocks. With my unique insights and knowledge, I hope to provide other investors with a contrasting view of my portfolio, given my particular background.Prior to Seeking Alpha, I worked as a professionally trained architect in a private architecture practice, with a focus on public and healthcare projects. My qualifications include:- Qualified Person with the Board of Architects, Singapore.- Master's in Architecture from the National University of Singapore.- Bachelor in Arts from the National University of Singapore.If you have any questions, feel free to reach out to me via a direct message on Seeking Alpha or leave a comment on one of my articles.

Disclosure: I/we have a beneficial long position in the shares of AMD, NVDA, QCOM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

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