Needham & Company LLC Has Lowered Expectations for onsemi (NASDAQ:ON) Stock Price

onsemi (NASDAQ:ON) had its price objective lowered by stock analysts at Needham & Company LLC from $130.00 to $116.00 in a research report issued on Tuesday,Benzinga reports. The brokerage presently has a “buy” rating on the semiconductor company’s stock. Needham & Company LLC’s price target points to a potential upside of 44.28% from the stock’s previous close.

Several other research analysts have also recently weighed in on the stock. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of onsemi in a report on Friday, July 24th. Barclays lifted their target price on shares of onsemi from $75.00 to $100.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 6th. UBS Group reaffirmed a “neutral” rating and set a $95.00 price objective on shares of onsemi in a report on Monday, June 29th. Zacks Research lowered onsemi from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 6th. Finally, B. Riley Financial boosted their target price on onsemi from $118.00 to $135.00 and gave the stock a “buy” rating in a research report on Friday, June 26th. Fourteen research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $102.00.

onsemi Stock Performance

Shares of ON opened at $80.40 on Tuesday. onsemi has a 52-week low of $44.56 and a 52-week high of $134.92. The stock’s 50-day simple moving average is $104.28 and its 200 day simple moving average is $85.07. The company has a debt-to-equity ratio of 0.41, a quick ratio of 3.14 and a current ratio of 4.87. The stock has a market capitalization of $31.51 billion, a price-to-earnings ratio of 57.02, a price-to-earnings-growth ratio of 0.90 and a beta of 2.03.

onsemi (NASDAQ:ON) last announced its quarterly earnings results on Monday, August 3rd. The semiconductor company reported $0.74 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.02. onsemi had a return on equity of 12.79% and a net margin of 9.46%.The firm had revenue of $1.60 billion for the quarter, compared to analysts’ expectations of $1.59 billion. During the same period in the prior year, the business posted $0.53 earnings per share. The company’s revenue was up 9.2% on a year-over-year basis. onsemi has set its Q3 2026 guidance at 0.810-0.930 EPS. Research analysts forecast that onsemi will post 3.09 EPS for the current fiscal year.

Institutional Investors Weigh In On onsemi

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Pictet Asset Management Holding SA increased its position in shares of onsemi by 38.8% in the fourth quarter. Pictet Asset Management Holding SA now owns 3,981,981 shares of the semiconductor company’s stock valued at $215,624,000 after acquiring an additional 1,112,774 shares during the period. Twin Capital Management Inc. purchased a new stake in shares of onsemi during the fourth quarter worth about $585,000. Carmel Capital Partners LLC boosted its holdings in shares of onsemi by 119.3% during the fourth quarter. Carmel Capital Partners LLC now owns 73,416 shares of the semiconductor company’s stock worth $3,975,000 after purchasing an additional 39,944 shares during the period. Generali Investments Towarzystwo Funduszy Inwestycyjnych grew its stake in shares of onsemi by 2,670.6% in the fourth quarter. Generali Investments Towarzystwo Funduszy Inwestycyjnych now owns 47,100 shares of the semiconductor company’s stock worth $2,550,000 after purchasing an additional 45,400 shares during the last quarter. Finally, VCI Wealth Management LLC bought a new stake in shares of onsemi in the fourth quarter worth about $1,276,000. 97.70% of the stock is currently owned by institutional investors.

onsemi News Roundup

Here are the key news stories impacting onsemi this week:

• Positive Sentiment: Q2 earnings and revenue exceeded expectations. onsemi reported adjusted EPS of $0.74 versus the $0.72 consensus estimate and revenue of approximately $1.604 billion versus expectations of $1.59 billion. Revenue increased 9% year over year, while adjusted gross margin reached 39.3%. onsemi Reports Second Quarter 2026 Results
• Positive Sentiment: AI data-center demand is becoming a meaningful growth driver. Management said it is prioritizing AI infrastructure customers and expects data-center revenue to more than double in 2026. The company highlighted rising demand for high-voltage power solutions and other products used in AI applications. ON Semiconductor Shifts Capacity to AI Data Centers
• Positive Sentiment: Cash generation and shareholder returns improved sharply. Operating cash flow rose 150% year over year, free cash flow reached $425.4 million and onsemi repurchased $332 million of stock during the quarter. Stocks to Watch: ON Semiconductor
• Neutral Sentiment: Third-quarter guidance was broadly encouraging but not a major upside surprise. onsemi projected adjusted EPS of $0.81–$0.93 and revenue near $1.7 billion, roughly in line with analyst expectations. The midpoint implies continued sequential growth, but investors may have wanted a larger forecast increase given the AI enthusiasm.
• Negative Sentiment: AI growth requires reallocating capacity away from automotive and industrial customers. Automotive remains a major part of onsemi’s business, so prioritizing data centers could raise concerns about near-term automotive sales, customer relationships and the pace of the broader cyclical recovery.
• Negative Sentiment: Analysts remain cautious on the risk-reward profile. Baird raised its price target to $108 from $100 but maintained a Hold rating, citing margin tailwinds that are partly offset by competitive pressures. With the stock trading well above its 200-day average and at a relatively high earnings multiple, the results may have been largely anticipated. ON Semi Price Target Raised to $108

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.