How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in ON Semiconductor Corp. (ON) ten years ago? It may not have been easy to hold on to ON for all that time, but if you did, how much would your investment be worth today?
ON Semiconductor Corp.'s Business In-Depth
With that in mind, let's take a look at ON Semiconductor Corp.'s main business drivers.
onsemi, is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components. The company was spun off from Motorola in Aug 1999 and went public through an IPO in May 2000.
onsemi’s product lines include discretes, such as bipolar transistors, diodes, filters, FETs, rectifiers and thyristors.
onsemi’s acquisition of GT Advanced Technologies will help the company to grow and innovate disruptive intelligent power technologies. Moreover secure supply of SiC to meet growing demand of customers for SiC based solutions. Moreover, the company’s acquisitions of Cypress Semiconductor’s CMOS Image Sensor Business Unit, SANYO Semiconductor, AMI Semiconductor, Analog Devices’ power PC controller business, CMD, Catalyst, and SoundDesign gave it new technical capabilities, some custom ASIC products, higher-margin products, exposure to new end markets and greater product breadth.
The power management product line includes AC-DC controllers and regulators, DC-DC converters and regulators, drivers, thermal managers, and voltage controllers, references and supervisors.
The logic product line includes clocking, memory, differential logic and standard logic products.
Signal processing products include amplifiers and comparators, analog switches, digital potentiometers, DSP systems and interfaces.
The company also offers custom application specific integrated circuits (ASICs), foundry services and memory products.
Customers include OEMs, electronic manufacturing service (EMS) providers and distributors. Top OEM customers include Motorola, Delta, Hewlett-Packard, Samsung, Siemens, Apple, Dell, Nokia, Intel, Sony, Continental Automotive Systems, DaimlerChrysler, Delphi, TRW and Visteon.
Top distributor customers include Arrow, Avnet, EBV Elektronik, Future, Solomon Enterprise and World Peace. Top EMS customers are Flextronics, Jabil and Celestica.
Phoenix, AZ-based onsemi reported revenues of $6.74 billion in 2021. The company generated 13.8% of total revenues in 2021 from the United States.
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in ON Semiconductor Corp. ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2012 would be worth $12,260.94, or a 1,126.09% gain, as of November 15, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 191.94% and gold's return of -0.70% over the same time frame.
Analysts are forecasting more upside for ON too.
onsemi is benefiting from broad-based strength across its core industrial and automotive end-markets for both silicon carbide and insulated-gate bipolar transistor-based products. In third-quarter 2022, IGBT and MOSFET businesses grew 37% year over year. Intelligent sensing revenues increased 43% year over year due to increased usage of semiconductor content in the automotive and industrial applications. Increasing average selling price bodes well for onsemi as the number of sensors per car continues to grow and the level of sophistication delivered by the latest generation systems increases. onsemi continues to gain traction among electric vehicle manufacturers. Shares have outperformed the industry year to date. However, investments on silicon carbide ramp will hurt margin in the near term.
The stock has jumped 21.81% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 11 higher, for fiscal 2022; the consensus estimate has moved up as well.
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