Key Points
ON Semiconductor Corporation (ON) climbed sharply today, extending a constructive stretch of trading with a decisive advance. The stock finished at $54.79 versus a previous close of $51.48, gaining 6.43% on the session and advancing $3.31 in dollar terms. The move unfolded on below-average volume, underscoring steady, persistent buying interest rather than a one-off spike, and it points to improving sentiment as investors reassess the company’s trajectory and capital-return priorities.
This price action stands out given ON remains 25% below its 52-week high of $73.19 set on 12/03/2024, leaving room for recovery if buyers continue to press the advantage. The rebound suggests a constructive shift in the balance of opinion, with participants increasingly willing to look through near-term noise and focus on catalysts that could support earnings quality and free cash flow over time. The sustained bid through the session signals conviction and helps reset the near-term trend.
Momentum like today’s often sparks follow-through as traders recognize relative strength and position for potential incremental catalysts. While the volume profile stayed muted versus longer-term averages, the character of the advance was orderly, with buyers in control and dips quickly absorbed. That combination — a notable percentage gain, firm intraday tone, and a close near session highs — typically reflects bullish activity and improving risk appetite. With ON still well below its recent peak, today’s upside move can be viewed as a constructive step in rebuilding confidence, laying a foundation for further progress if fundamentals and capital allocation continue to align with investor expectations.
Why ON Semiconductor Corporation Price is Moving Higher
ON’s strong session at $54.79 reflects bullish momentum driven by clear, company-specific catalysts and supportive fundamentals. The headline driver is management’s recent authorization of a $6 billion share buyback program on November 18, 2025, which signals confidence in intrinsic value and creates a durable demand backdrop for shares. Buybacks reduce share count over time and can enhance per-share metrics, a dynamic that investors often view positively, particularly when paired with financial discipline.
Reinforcing the move, ON reported Q3 2025 earnings of $0.63 per share, topping the $0.59 consensus by $0.04. Revenue of $1.55 billion came in ahead of the $1.52 billion consensus, even as sales declined 12% year over year. In today’s market, an earnings beat amid top-line pressure still conveys operational control and expense discipline, which can be enough to re-rate sentiment upward. The company also discussed accelerated non-cash impairment and depreciation charges tied to manufacturing assets — steps that can improve future efficiency, sharpen the portfolio, and support long-term cash generation.
Investors also weighed constructive metrics: a market cap of $20.71 billion and EPS (TTM) of $0.76 frame the valuation context, while volume of 3,184,069 shares today versus a 90-day average of 8,908,353 indicates the advance occurred on lighter-than-usual activity, consistent with accumulation rather than euphoria. With shares still 25% below the 52-week high of $73.19, many view the stock as attractively positioned if execution continues to firm up and if capital returns provide a steady tailwind. Together, a sizable buyback, an earnings beat, and visible cost actions created a favorable setup for ON’s 6.4% pop, adding to investor enthusiasm and supporting today’s strong performance.
What is the ON Semiconductor Corporation Rating - Should I Buy?
Weiss Ratings assigns ON a C rating. Current recommendation is Hold.
The rating is built on five indices: the Weak Growth Index (measures revenue and earnings expansion) reflects recent contraction, including -11.98% revenue growth, and muted EPS momentum. The Good Efficiency Index (measures operational effectiveness and profit margins) points to disciplined execution, with a 5.15% profit margin and a 3.89% ROE that, while modest, signals ongoing profitability. The Excellent Solvency Index (measures financial health and debt management) highlights a strong balance sheet, which is a key underpinning for resilience and capital allocation.
Counterbalancing these positives, the Weak Total Return Index (measures stock price appreciation plus dividends) indicates lagging risk-adjusted performance over time, and the Weak Volatility Index (measures price stability and risk) suggests choppier trading that can challenge conviction. A 67.54 P/E ratio underscores elevated expectations and can constrain near-term valuation upside if growth does not reaccelerate.
Relative to peers, the contrast is instructive. Sector peers include NVDA (B), AAPL (B), and MSFT (B). Those names combine stronger total returns, steadier growth, and more consistent price action, which support higher overall ratings. ON’s C reflects a more balanced, middle-of-the-road risk/reward profile that is sensitive to execution and cyclical demand recovery.
Taken together, the C rating captures ON’s solid solvency and reasonable efficiency, tempered by weaker growth, uneven total return, and higher volatility. It supports a Hold stance while the company works to convert cost actions and capital returns into sustained growth and steadier performance. For now, risk-adjusted prospects are average, with selective upside if execution improves.
About ON Semiconductor Corporation
ON Semiconductor Corporation operates within the Information Technology sector, serving the Semiconductors and Semiconductor Equipment industry with a focus on intelligent power and sensing technologies. The company designs and manufactures a broad portfolio of power semiconductors, analog and mixed-signal ICs, and image sensors that enable energy-efficient electronics across automotive, industrial, communications, and consumer end markets. Its solutions help customers manage, convert, and control power with high efficiency while capturing and interpreting critical data from the physical world.
A core strength for ON is power electronics. The company supplies MOSFETs, IGBTs, silicon carbide (SiC) power devices, gate drivers, power modules, and related power management ICs that support applications such as electric vehicle traction inverters, onboard chargers, DC fast charging, renewable energy inverters, industrial motor drives, and energy infrastructure. By focusing on high-efficiency power conversion and robust thermal performance, ON addresses customer needs for higher reliability, longer range in EVs, and lower total cost of ownership in industrial systems.
ON also maintains a meaningful presence in intelligent sensing. Its product set includes image sensors and related analog signal-chain components that enable advanced driver-assistance systems, industrial vision, machine safety, and smart devices. Integration of power and sensing helps customers simplify designs and accelerate time to market, while ON’s global manufacturing footprint and quality systems support high-volume, automotive-grade production. Through long-term supply agreements, application-specific support, and a focus on power density, efficiency, and reliability, ON aims to provide differentiated solutions for electrification, automation, and safety trends that are shaping the next generation of electronics.
Investor Outlook
Today’s rally reflects strengthening sentiment and tangible catalysts in the form of a sizable buyback and an earnings beat, while the Hold rating underscores a balanced, risk-aware stance. If execution continues to improve and capital returns persist, shares could see further constructive follow-through.
We view the C rating as supportive of a constructive but measured approach to ON. See full rankings of all C-rated Information Technology stocks inside the Weiss Stock Screener.
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