On Semiconductor (ON) Stock After 25% Weekly Drop Is The Valuation Now Attractive - Yahoo Finance

ON Semiconductor (ON) has experienced a sharp stock decline, with a weekly drop of 25.5% and a monthly fall of 27.4%, although its annual return remains strong at 71.3%. This volatility reflects shift... Read original →

ON Semiconductor’s 25% weekly stock plunge isn’t just sentiment-driven—it reveals structural fragility in power semiconductor exposure to EV supply chains. Technically, while its SiC and IGBT solutions are embedded with major automakers, upstream wafer capacity remains concentrated in Taiwan, China and South Korea, amplifying geopolitical inventory costs. Compliance-wise, U.S. CHIPS Act mandates for domestic manufacturing are forcing ON to accelerate Arizona fab ramp-up, straining free cash flow. Rivals like Infineon and ST are tightening European supply loops, while TI leverages analog integration to capture mid-tier power management share. Over the next 12–24 months, even with rising EV adoption, ON’s inability to convert tech leadership into pricing power will undermine its premium valuation. The 27% DCF overvaluation isn’t noise—it’s the market pricing out exhausted 'hard-tech' narratives.