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5. ON Semiconductor Corporation (NASDAQ:ON)

Number of Hedge Fund Holders In Q3 2024: 45

ON Semiconductor Corporation (NASDAQ:ON) is another diversified non-consumer and IT-focused semiconductor company. Naturally, this has meant that in today’s AI-driven stock market, the shares are down 17.4% year-to-date. The share price drop is unsurprising considering the firm’s income statement. As of H1 2024, automotive products accounted for 53% of the firm’s $3.6 billion revenue. During the same time period, the automotive revenue dropped by 6%, and ON Semiconductor Corporation (NASDAQ:ON)’s industrial and other business divisions also marked annual revenue drops. The firm is one of the world’s leading suppliers of silicon carbide chips that power vehicles. Therefore, the sluggish EV industry has also contributed to weakness in ON Semiconductor Corporation (NASDAQ:ON)’s stock. Looking ahead, with the Trump administration’s purported approach towards the EV industry, the firm might be in for some tough times.

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.”