Goldman Sachs’ List Of Stocks Popular With Mutual Fund Managers: Top 20 Stocks

12. ON Semiconductor Corporation (NASDAQ:ON)

Number of  Mutual Funds: 20

Number of Hedge Fund Investors in Q2 2024: 45

ON Semiconductor Corporation (NASDAQ:ON) is an American semiconductor manufacturer that makes chips that are used in electric cars, industrial applications, and other products. Some of its products include power management chips, signal amplifiers, and sensors. ON Semiconductor Corporation (NASDAQ:ON) is a key player in the electric vehicle industry since it makes and sells silicon carbide chips that are used in EV power management. Consequently, the fact that the semiconductor manufacturer’s shares are down by 13.5% year to date is unsurprising since the EV industry has struggled to generate high demand due to higher rates. Additionally, ON Semiconductor Corporation (NASDAQ:ON)’s exposure to EVs also means that as more companies enter the market, lower prices could translate into margin problems for the firm. Amidst the turmoil, the firm is now pursuing a downsizing strategy through which it plans to shift some of its chip manufacturing needs to contracted fabs. This could spell trouble if demand picks up, and potential tailwinds for ON Semiconductor Corporation (NASDAQ:ON) include stable demand from Volkswagen and an acquisition to grow its presence in the industrial and defense markets.

Artisan Partners mentioned ON Semiconductor Corporation (NASDAQ:ON) in its Q1 2024 investor letter. Here is what the fund said:

“ON Semiconductor is a leading designer and manufacturer of chips for power management and image sensing. From a battery-electric vehicle (EV) standpoint, ON is a leading producer of silicon carbide chips. Shares have been under pressure as the company grapples with multiple quarters of inventory right-sizing across the entire auto supply chain and slower-than-expected growth of EV sales. However, ON is seeing smaller sales declines than peers due to market share gains, and we believe the company will be equally well positioned if automakers rebalance their efforts from full EVs toward hybrid vehicles. We remain patient.”