Should You Go Long On $ON?
ON Long-Term Analysis
Hey!
Today we're looking at onsemi, ticker ON 0.00%↑ , which has taken a beating lately, but they just put out some numbers that show signs of life. Let's see what the numbers tell us.
Quick Summary (TL;DR)
The company is going through a rough patch with weak demand, forcing them to cut prices to keep business. This is hurting their short-term profits.
But, under the hood, the business is fundamentally strong, with an excellent Caesar score and a solid plan to focus on high-growth areas like electric vehicles and AI.
Here's my take on the key areas:
The Business & Moat: 🟨
Financials & Growth: 🟩
Read on for my bespoke graphs, detailed analysis, entry points, and complete trading strategy with exact support/resistance levels.
Breaking Down the Business
So what does onsemi actually do? Imagine all the electronics in an electric car or a factory. They all need power, but they need the right kind of power, delivered safely and efficiently. onsemi makes the chips that act like the foremen on a job site – they manage the flow of electricity, making sure everything runs smoothly without blowing up.
They aren't making the "brains" of the computer like Nvidia or Intel. They make the tough, specialized chips that handle high voltages for things like EV charging systems, solar power inverters, and the massive power supplies for AI data centers. It's not glamorous, but it's absolutely essential. This focus on power is their big bet for the future.