ON Semiconductor Performing Well As The Cycle Ages

Like a lot of chip companies, ON Semiconductor (ON) has seen its share price slide over the last few months as investors have become more worried about lengthening lead times and the prospect that the cycle is peaking. I wouldn’t advise ignoring that risk (it’s really never different this time, and semiconductor demand is still cyclical), but ON’s leverage to growth opportunities in auto and industrial end-markets and ongoing synergies from the Fairchild deal can still support a worthwhile outlook. I’d also note that expectations aren’t exactly robust – mid single-digit free cash flow growth would be enough to support a higher share price.

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ON Semiconductor Performing Well As The Cycle Ages