35 Chip Stocks In Focus Amid Tech Selloff

17. ON Semiconductor Corporation (NASDAQ:ON)

Number of Hedge Fund Holders: 45   

ON Semiconductor Corporation (NASDAQ:ON) provides intelligent sensing and power solutions in the United States and internationally. In January, the company announced the complete acquisition of the Silicon Carbide Junction Field-Effect Transistor (SiC JFET) technology business, including the United Silicon Carbide subsidiary, from Qorvo for $115 million in cash. This acquisition will strengthen the company’s leadership in power semiconductors. Truist Securities recently downgraded the shares to Hold from Buy. The firm also lowered the price target on the shares to $60 from $85. Analysts led by William Stein said that the management noted that recent demand trends have deteriorated and indicated that the business it intended to exit over the last couple of years will come to fruition this year, further pressuring revenue and, in turn, margins. The analysts added that despite the recent sell-off in the shares, they see a more cautious stance on the stock as warranted until estimates are reset lower.