Needham & Company LLC Reiterates "Buy" Rating for onsemi (NASDAQ:ON)

Key Points

• Needham reiterated a “Buy” rating on onsemi and set a $116 price target, implying approximately 74% upside from the stock’s reported $66.60 price. The broader analyst consensus is “Moderate Buy,” with an average target of $95.64.
• onsemi exceeded quarterly expectations, reporting $0.74 in EPS versus $0.72 expected and $1.60 billion in revenue versus $1.59 billion expected. Revenue increased 9.2% year over year, while the company issued third-quarter 2026 EPS guidance of $0.81–$0.93.
• The company launched its Embedded Power Platform for AI data centers, electric vehicles and industrial applications, with Subaru evaluating it for future EVs. However, investors remained cautious because the long-term opportunity and projected $213 billion addressable market lack near-term revenue commitments and detailed financial milestones.

onsemi (NASDAQ:ON - Get Free Report)'s stock had its "buy" rating reiterated by analysts at Needham & Company LLC in a report released on Thursday, Benzinga reports. They currently have a $116.00 price target on the semiconductor company's stock. Needham & Company LLC's target price would indicate a potential upside of 74.17% from the stock's current price.

A number of other analysts also recently commented on the stock. Weiss Ratings raised shares of onsemi from a "sell (d+)" rating to a "hold (c)" rating in a report on Friday, August 7th. Bank of America lifted their price target on shares of onsemi from $115.00 to $138.00 and gave the company a "buy" rating in a research report on Tuesday, May 26th. Citigroup decreased their price target on onsemi from $120.00 to $98.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 5th. Susquehanna upped their price target on onsemi from $140.00 to $150.00 and gave the stock a "positive" rating in a report on Thursday, July 9th. Finally, Mizuho reduced their price objective on onsemi from $125.00 to $110.00 and set an "outperform" rating for the company in a report on Tuesday, August 4th. Fifteen analysts have rated the stock with a Buy rating and fifteen have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $95.64.

onsemi Price Performance

onsemi stock opened at $66.60 on Thursday. onsemi has a one year low of $44.56 and a one year high of $134.92. The company has a debt-to-equity ratio of 0.51, a quick ratio of 2.49 and a current ratio of 3.46. The business has a fifty day moving average of $80.23 and a two-hundred day moving average of $87.41. The company has a market cap of $25.93 billion, a P/E ratio of 42.69, a price-to-earnings-growth ratio of 0.60 and a beta of 2.00.

onsemi (NASDAQ:ON - Get Free Report) last posted its quarterly earnings results on Monday, August 3rd. The semiconductor company reported $0.74 earnings per share for the quarter, topping analysts' consensus estimates of $0.72 by $0.02. The business had revenue of $1.60 billion for the quarter, compared to analysts' expectations of $1.59 billion. onsemi had a net margin of 10.17% and a return on equity of 14.06%. The business's revenue for the quarter was up 9.2% on a year-over-year basis. During the same period in the prior year, the company posted $0.53 EPS. onsemi has set its Q3 2026 guidance at 0.810-0.930 EPS. As a group, analysts predict that onsemi will post 3.23 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Janus Henderson Group PLC raised its position in shares of onsemi by 10.9% during the 1st quarter. Janus Henderson Group PLC now owns 13,700,884 shares of the semiconductor company's stock worth $848,392,000 after purchasing an additional 1,345,894 shares during the last quarter. Van ECK Associates Corp grew its holdings in onsemi by 16.6% during the 2nd quarter. Van ECK Associates Corp now owns 5,143,343 shares of the semiconductor company's stock valued at $486,252,000 after buying an additional 731,540 shares during the last quarter. Norges Bank purchased a new position in onsemi during the fourth quarter worth $330,885,000. Pictet Asset Management Holding SA increased its position in onsemi by 15.5% during the first quarter. Pictet Asset Management Holding SA now owns 4,597,886 shares of the semiconductor company's stock worth $284,495,000 after buying an additional 615,905 shares in the last quarter. Finally, Assenagon Asset Management S.A. raised its holdings in shares of onsemi by 74.8% in the second quarter. Assenagon Asset Management S.A. now owns 2,807,808 shares of the semiconductor company's stock worth $265,450,000 after acquiring an additional 1,201,534 shares during the last quarter. 97.70% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about onsemi

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: onsemi launched its Embedded Power Platform (EPP), which integrates silicon, silicon carbide and gallium nitride devices in a wafer-level package. The company says the architecture could deliver three to five times higher power density, lower power losses and faster development for AI data centers, electric vehicles and industrial systems. onsemi Introduces the Embedded Power Platform
• Positive Sentiment: Subaru entered a strategic technology engagement to evaluate EPP for future electrified vehicles, giving onsemi an early design partner and potential validation for its automotive strategy. Sampling is expected to begin in 2026. Subaru to Evaluate onsemi’s Embedded Power Platform
• Neutral Sentiment: Management outlined a potential $213 billion addressable market by 2030 across automotive, industrial, AI data centers and automation, with a strategy centered on higher-value system solutions rather than individual components. However, the opportunity remains long term and forward-looking, with limited evidence yet of customer revenue, production commitments or financial targets. onsemi Charts Path to Power the Next Decade of Innovation
• Negative Sentiment: Investors appeared disappointed that Investor Day emphasized ambitious technology and market projections rather than immediate earnings growth, concrete customer commitments or detailed financial milestones. The reaction suggests the market wanted clearer proof that EPP can translate into near-term revenue and margin expansion.

About onsemi

onsemi is engaged in disruptive innovations and also a supplier of power and analog semiconductors. The firm offers vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure, with a focus on automotive and industrial end-markets. It operates through the following segments: Power Solutions Group, Advanced Solutions Group, and Intelligent Sensing Group. The Power Solutions Group segment offers discrete, module, and semiconductor products that perform multiple application functions, including power switching, power conversion, signal conditioning, circuit protection, signal amplification, and voltage reference functions.

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