ON Semiconductor (ON) Stock Could Be 17% Overvalued After Its Recent Run - Yahoo Finance Singapore

ON Semiconductor (ON) has shown strong stock performance recently, with a share price of $121.62 as of June 20, 2026, and significant returns over the past year and month. However, Simply Wall St esti... Read original →

ON Semiconductor’s current valuation bubble stems from overly linear extrapolation of SiC capacity ramp and AI power demand. Technically, if its 8-inch SiC substrate yield fails to exceed 70% by 2027, automotive MOSFET cost structures will lag, eroding price competitiveness against Infineon and STMicro. Geopolitically, U.S. CHIPS Act subsidies for wide-bandgap manufacturing risk overcapacity, while exposure to Taiwan, China and Malaysia packaging hubs elevates supply chain insurance costs. Rivals like Wolfspeed are adopting hybrid IDM-foundry models to accelerate output—ON’s rigid vertical integration may miss this window. Over the next 18 months, slowing EV adoption and fragmented AI server power standards will pressure its high-margin narrative. A pullback toward $100 isn’t pessimism—it’s cyclical realism.