10 Undervalued Semiconductor Stocks to Buy According to Analysts

2. ON Semiconductor Corporation (NASDAQ:ON)

Upside Potential: 58%

Fwd. PE: 13.9

The second stock on our list is ON Semiconductor Corporation (NASDAQ:ON), boasting a forward P/E ratio of approximately 14.0x. The company is a prominent manufacturer of intelligent power and sensing solutions, primarily catering to the automotive and industrial markets. Its advanced technologies are pivotal in various sectors, including vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure.

Despite facing challenges in 2024, with a roughly 20% year-on-year revenue decline over the first nine months due to slower demand, ON Semiconductor Corporation (NASDAQ:ON) remains strategically well-positioned in the rapidly growing automotive and industrial markets. The company’s total addressable market (TAM) is substantial, estimated at $44 billion, with a notable $16 billion opportunity in electric vehicles. This strong market positioning underpins the company’s long-term growth prospects.

In line with its growth strategy, ON Semiconductor Corporation (NASDAQ:ON) recently completed the acquisition of Qorvo’s Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business for $115 million in cash. Simon Keeton, group president and general manager of the Power Solutions Group, emphasized the significance of this acquisition, stating:

“This acquisition further strengthens onsemi’s leadership in power semiconductors by providing disruptive and market leading technologies to our customers to solve their most pressing power density and efficiency problems in AI data centers, automotive and industrial markets.”