10 Undervalued Chip Stocks Near 52-Week Lows

2. ON Semiconductor Corporation (NASDAQ:ON)

ON Semi is just within 3% of its 52-week low, presenting a compelling investment opportunity to investors. The stock is down 24% in a year, and understandably so. It is another victim of the slow industrial and automotive end markets. But it has a lot of things going well for it.

The company’s business model is one example. The firm is set to be a future industry leader with its sensors and power management solutions quite liked by the two main industries it targets. The company’s management is also focused on long-term growth, which is why they don’t use too many buzzwords to prop up stock sentiment.

The firm’s previous earnings report disappointed with a 19% YoY revenue decline, with the industrial segment leading most of the losses. This slump will be recovered when the industry dynamics shift again. What will then help the company most is the improving gross margins. Moreover, once the company completes the acquisition of the New York plant run by GlobalFoundries, its efficiency will improve too. Ultimately this will bring a massive impact on the bottom line once the automotive and industrial markets pick up the pace again. The stock is a good buy at current levels.