10 Best Semiconductor Stocks With The Highest Upside Potential

8. On Semiconductor Corporation (NASDAQ:ON)

Upside Potential: 36.39%

Market Capitalization: $18.37 Billion

Number of Hedge Fund Holders: 52

ON Semiconductor Corporation (NASDAQ:ON) provides intelligent power and sensing solutions, focusing on the automotive and industrial markets. The company is driving advancements in electrification, AI, data centers, and sustainable energy. The company operates in three segments: Power Solutions Group (PSG), Analog and Mixed-Signal Group (AMG), and Intelligent Sensing Group (ISG). In 2025, the company completed the acquisition of the Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business from Qorvo to enhance its power portfolio.

ON Semiconductor Corporation’s (NASDAQ:ON) customer base includes long-term relationships with distributors and direct customers, accounting for significant revenue from major OEMs and resellers. In 2024, sales to distributors made up 53% of revenue, with direct customer sales at 47%. Due to the long-term nature of the company’s contracts, there is visibility in earnings.  During the Q4 2024 earnings call, the company highlighted its decision to exit volatile non-core businesses, representing around $350 to $400 million, and reiterated its commitment to high-value segments like SiC and medical. It is also making structural cost-cutting which is expected to take effect in Q2 2025.