|Day's Range||0.0100 - 0.0100|
ON has executed well in recent years to shift the company's product mix to higher value markets, analyst Roy said in a Friday morning note. As opposed to the broader semiconductor market, which is expected to grow at a 4% CAGR through 2022, ON expects CAGRs of 9%, 6% and 13%, respectively for its strategic target markets of automotive, industrial and cloud/data center, Roy noted.
ON Semiconductor's (ON) strength in automotive sensors favors adoption, which in turn is expected to bolster revenue growth in the days ahead.
Multi-camera system features ON Semiconductor’s new RGB-IR image sensor, Ambarella’s advanced RGB-IR video processing SoC, and Eyeris’ in-vehicle scene understanding AI
AMSTERDAM, Netherlands, Sept. 12, 2019 -- Icotera, a global leader in fiber-to-the-home (FTTH) customer premise equipment solutions, has announced that Quantenna Connectivity.
ON Semiconductor (ON), driving energy efficient innovations, has announced the introduction of the ARX3A0 digital image sensor with 0.3 Mega-Pixel (MP) resolution in a 1:1 aspect ratio. With its small size, square format and high frame rate, ARX3A0 is particularly suitable for emerging Machine Vision, Artificial Intelligence and AR/VR applications, as well as small supplemental security cameras. Power is becoming increasingly important for many applications that provide still or streaming images.
Amid the ongoing trade war with China, a somber picture is being painted of the semiconductor industry. China announced on August 23 that it would be imposing new tariffs on $75 billion worth of U.S. goods, including chips. It didn’t help when Trump responded by stating that U.S. companies should find manufacturing options other than China on the same day, with the escalation sending the VanEck Vectors Semiconductor ETF down 4%.Despite the fact that China and the U.S. have agreed to a meeting set to take place at the beginning of October, trade war fears still weigh heavily on investors’ minds.“[The] base case for the trade war now is no deal before the 2020 US election,” Citigroup said in a research note to clients.However, the industry received good news just a few days before on August 19 after the U.S. gave Chinese tech giant Huawei a “temporary general license” extension. This means that Huawei is able to buy from American suppliers for an additional 90 days. Bearing this in mind, we used the TipRanks Stock Screener to take a closer look at a few semiconductor stocks to see if analysts think they can survive a market weight down by flaring trade war tensions. This tool let us filter stocks by Market Cap, Sector and even the Analyst Consensus. Let’s dive in. Advanced Micro Devices, Inc. (AMD)Since the August 23 escalation, shares of AMD are up 3%. While some investors have expressed concern regarding the $39 million loss in revenue associated with the blacklisting of Huawei, the company is still a force within the semiconductor space.Even with its relatively small $33 billion market cap compared to that of its competitors, namely Intel (INTC) and Nvidia (NVDA), which have market caps of $226 billion and $109 billion, respectively, AMD’s products speak for themselves. This is evidenced by AMD’s Q2 GPU shipments growth rate of around 10% versus NVIDIA’s GPU shipments remaining flat. Its commitment to constantly improving its product offerings is expected to pay off in the long-run. Its new 7-nanometer Ryzen CPUs are expected to outperform and require less power than equivalent products from its competitors. Its new EPYC Rome server processor, which should be launched during the third quarter, has already garnered significant industry approval. Several partners are now using the platform according to CEO Lisa Su.AMD’s foray into the gaming world could also drive substantial revenue growth. With new consoles slated for a 2020 release, the company is expecting to see an increase in demand for semi-custom chips. While some believe that these positive developments have already been factored into the share price, one five-star analyst highlights its superior PC GPU revenue growth compared to that of NVDA’s as making it especially strong. As a result, Nomura’s David Wong reiterated his Buy rating and $37 price target on August 23. He thinks shares could surge 21% over the next twelve months. In general, the Street is optimistic about AMD. Its ‘Moderate Buy’ analyst and $34 average price target suggest 11% upside potential. Micron Technology Inc. (MU)The computer memory and storage producer has surged 14% since the August 23 tariff announcement. Not to mention MU is coming off of a Q3 2019 earnings and revenue beat posted on June 25. That being said, revenue declined 39% year-over-year and management offered lower-than-expected guidance for Q4. Recently, MU has fallen victim to weaker DRAM and NAND demand as well as pricing as a result of higher inventories. It doesn’t help that MU would take a hit if the Huawei ban resumes after the extension, with the tech company accounting for 13% of its revenue in the first half of fiscal 2019. While investors were hoping to see a turnaround in the fourth quarter, some analysts claim that this would have been widely unrealistic. However, management’s expectation of increased DRAM demand from cloud vendors should help improve MU’s standing with forecasts indicating a turnaround that’s set for the second half of 2020.Deutsche Bank analyst Sidney Ho expressed that Global trade tensions are actually shifting some of the bargaining power from memory buyers to memory suppliers even as inventory levels are still elevated. “DRAM prices spiked in July and have since retreated as expected but are still approximately 10% above the June levels. We believe risks of further significant price declines are diminishing and see Micron's fiscal Q4 as the trough quarter in the current cycle,” he explained. As a result, the five-star analyst reiterated his Buy rating and $55 price target on September 4. The analyst’s price target demonstrates his confidence in MU’s 12% upside potential.All in all, MU has a ‘Moderate Buy’ analyst consensus as well as a $49 average price target. ON Semiconductor Corporation (ON) The last semiconductor on our list has seen a 5% jump in the wake of the tariff announcements. Despite a weak Q2 earnings release, analysts think ON is set to continue to gain. On August 5, ON reported that it saw lower-than-expected revenue in its second quarter as a result of the automotive market’s sharp broad-based inventory correction. “So far, in the current downturn, cyclicality in our revenue and margins has been lower than that of our peer group. Our performance thus far speaks to the transformed nature of our business and our focus on highly differentiated power, analog, sensor and connectivity products for automotive, industrial and cloud power end markets,” CFO Bernard Gutmann stated.While management isn’t expecting this figure to improve in the next quarter, some analysts are still picking ON thanks to the expected meaningful deployment rates for 5G systems and its continued investments in the business.During the quarter, the company finalized its acquisition of Quantenna Communications, a company that provides connectivity semiconductor solutions for WiFi. Once fully integrated, Quantenna should help ON expand its reach in the carrier segment. Management also stated that the ramping up of the adoption of electric vehicles and active safety should drive significant growth in the power semiconductor and sensor businesses. It doesn’t hurt that ON has already seen impressive growth in the cloud power market, with it seeing more than 60% year-over-year growth on cloud power products and applications.Based on all of the above factors, BNP Paribas analyst Jerome Ramel initiated coverage with a Buy on August 30. The rest of the Street is confident that this semiconductor stock still has room to grow. ON has a ‘Strong Buy’ analyst consensus, with its $23 average price target implying 25% upside potential. Find Wall Street’s most loved stocks with the Top Analysts’ Stocks tool
Moody's Investors Service ("Moody's") rated ON Semiconductor Corporation's ("ON Semi") amended senior secured term loan ("Term Loan") at Baa3. All other ratings, including ON Semi's Ba1 Corporate Family Rating ("CFR") and Baa3 rating on its existing $1.9 billion senior secured revolver ("Revolver"), and the stable outlook remain unchanged.
ON Semiconductor (ON) rolls out new interface controllers which are IEEE 802.3bt standard compliant, to enable and support high-power applications.
ON Semiconductor (ON), driving energy efficient innovations, is leading the industry with its support for the IEEE 802.3bt standard, thanks to a growing portfolio of compliant products and technologies. Using the new IEEE 802.3bt standard, Power over Ethernet (PoE) can be used to deliver high-speed connectivity up to 90 W of power over Local Area Network (LAN) connections. ON Semiconductor’s solutions not only support the new standard limit of power, but extends it further to 100 W for systems including telecommunications and digital signage.
Keith Jackson has been the CEO of ON Semiconductor Corporation (NASDAQ:ON) since 2002. This analysis aims first to...
(Bloomberg) -- Semiconductor companies and Apple Inc. fell sharply on Friday, as the trade war between the U.S. and China continued to escalate.China’s Ministry of Finance said the country plans to levy retaliatory tariffs on another $75 billion of U.S. goods, pressuring the securities in pre-market trading. Their losses were extended following the open, after President Donald Trump subsequently said that he would announce his response Friday afternoon.Apple fell as much as 3.9%. The iPhone maker is heavily correlated to trade issues because China is both a major part of its supply chain and a notable market for its products. The company derived nearly 20% of its 2018 revenue from China, according to data compiled by Bloomberg.Chipmakers have been similarly volatile because of the trade war. The Philadelphia Semiconductor Index dropped 3.6% on Friday, and every member of the benchmark industry index was in negative territory.Among notable decliners, Qualcomm Inc. lost 3.3% while Nvidia Corp. was off 5% and Micron Technology shed 3.5%. Broadcom Inc. was down 4.9% and ON Semiconductor Corp. lost 5.4%.Technology stocks were the weakest-performing sector on Friday, with the S&P 500 information technology index down 2.4%. The S&P 500 overall fell 1.4%.(Adds Trump’s response in second paragraph, updates prices to market open)To contact the reporter on this story: Ryan Vlastelica in New York at firstname.lastname@example.orgTo contact the editor responsible for this story: Catherine Larkin at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
After downgrading the chip sector almost a year ago, brokerage firm Raymond James now is seeing some attractive semiconductor stocks. They include ON Semiconductor and NXP Semiconductors.
Expectations for ON Semiconductor and NXP Semiconductors are now low enough to present a great buying opportunity, according to Raymond James.
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...
Simcoe Capital Management was founded in 2003 by Jeffrey Jacobowitz. He remained the fund’s Managing Partner and Portfolio Manager, and is also the manager and founder of Simcoe Partners. Mr. Jacobowitz holds a BA in Economics from the University of Maryland (UMBC). Before launching his own fund, Jacobowitz worked as a senior accountant at Deloitte & […]
As a Durham-based company shifts its focus to next-generation semiconductors, it’s inked another top-dollar deal that analysts are celebrating.
Microchip Technology late Tuesday beat Wall Street's earnings target for its fiscal first quarter, but came up short on sales. The earnings news sent shares higher in extended trading.
ON Semiconductor (Nasdaq: ON), energy efficient innovations, announced a sponsorship to IEEE Empower a Billion Lives (EBL), an interdisciplinary, biennial global competition to identify and promote innovative solutions to energy poverty. Increasing energy demand and greenhouse gas emissions are driving global mandates for energy efficiency and reduced emissions, including the replacement of fossil fuels by clean energy sources. ON Semiconductor’s comprehensive portfolio of power, analog and intelligent sensors, and connectivity products are intended to minimize power consumption and improve energy efficiency.
ON Semiconductor Corp (NASDAQ: ON) shares were trading lower Tuesday after the company reported a mixed second quarter. ON reported in-line EPS of 42 cents, but revenue declined 7% to $1.348 billion, short of analyst expectations. Bank of America Merrill Lynch analyst Vivek Arya said ON shares offer a compelling valuation, but the macroeconomic background will remain weak for the time being.
With escalation in trade war between the world's largest economies, the semiconductor sector has been the worst hit given its significant exposure to China.