5 Most Promising Stocks to Buy Before They Take Off

2. ON Semiconductor Corporation (NASDAQ:ON)

Performance (YTD) as of April 23: -24.48%

Average Upside Potential as of April 23: 94.74%

Number of Hedge Fund Holders: 45

ON Semiconductor Corporation (NASDAQ:ON) is an Arizona-based company that offers intelligent sensing and power solutions. In Q4 of 2023, 45 hedge funds had investments in ON Semiconductor Corporation (NASDAQ:ON) with positions worth $885.107 million. As of Q4 of 2023, D E Shaw is the top investor in the company. In the quarter, the firm increased its stake by 66% to 2.975 million shares worth $248.5 million.

The stock’s price has lost 24.48% year-to-date, as of April 23. ON Semiconductor Corporation (NASDAQ:ON) has a Buy-equivalent rating from 15 Wall Street analysts, and the average price target of $119.63 represents an upside of 94.74% from the current levels, as of April 23.

Fred Alger Management stated the following regarding ON Semiconductor Corporation (NASDAQ:ON) in its fourth quarter 2023 investor letter:

“ON Semiconductor Corporation (NASDAQ:ON) specializes in designing, marketing, and manufacturing a range of semiconductors, including analog, discrete, and data management types, with an emphasis on power semiconductors. The company has a global operational and sales presence, catering to key electronics sectors such as computing, wireless communications, networking, automotive. industrial, and consumer electronics. After experiencing several quarters of strong sales growth, the company reduced its fiscal 2024 revenue forecast due to a general slowdown in the Automotive and Industrial sectors. The revision is attributed to decreased electric vehicle demand, inventory overhang in Europe, and a slowdown in other markets Despite strong margins in Silicon Carbide (SIC), diminished demand led to a 20% decrease in their 2024 SiC revenue projection, negatively impacting the company’s share price. Nevertheless, we maintain a positive outlook on the company’s fundamentals, given its leadership in SiC products, which we believe are essential for the growth of the electric vehicle market.”