What's Going On With ON Semiconductor Stock?

ON Semiconductor Corp ON shares are trading higher by 0.56% to $75.89 during Thursday’s session. With Taiwan Semiconductor Mfg. Co. Ltd. surpassing second-quarter earnings expectations, semiconductor stocks are recovering following Wednesday’s selloff. On Wednesday, the sector experienced a decline due to speculations about President Biden potentially imposing more restrictions on China. This comes alongside Republican nominee Donald Trump’s remarks about the China-Taiwan conflict during a Bloomberg interview.

Trump's remarks about Taiwan controlling "100% of our chip business" emphasize the substantial reliance of the U.S. semiconductor industry on Taiwanese manufacturing. This dependence raises concerns about possible supply chain disruptions, particularly amidst geopolitical tensions between China and Taiwan.

Geopolitical risks surrounding TSMC can generate negative sentiment that spills over to other semiconductor companies, including ON Semi. Investors may become anxious about the stability of the supply chain and potential disruptions in the future.

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Is ON A Good Stock To Buy?

An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

For example, for ON Semiconductor, you'll notice that earnings in its last quarter grew 3.85% source. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.

On the valuation side, ON Semiconductor's price to earnings ratio – a measure of how much an investor pays for the company's earnings – is projected to compress 37.05% in the current quarter when compared with last year. That places it below similar businesses NVIDIA, Taiwan Semiconductor, Broadcom in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

There are many different valuation metrics that may help you make a decision. Find more on ON Semiconductor's quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.

ON has a 52-week high of $111.35 and a 52-week low of $59.34.