ON Semiconductor Has Cratered for 3 Months: This Wall Street Pro Remains Bullish, Citing 120% Returns for Buyers

Analysts from J.P. Morgan, Piper Sandler, Bank of America, and Morgan Stanley issued bullish ratings for Q2 Holdings (QTWO), Apple (AAPL), and ON Semiconductor (ON). QTWO has a $76.30 avg. price target, AAPL has a $336.11 avg. target, and ON has a $107.61 avg. target. Analysts cited in the article have varying track records.

ON Semiconductor's stock fell 9% to $66.60 during its investor day after the company reduced its total addressable market estimate by $30 billion. CEO Hassane El-Khoury attributed the change to procedural reasons, but investors reacted negatively. The company's forward P/E is near 17, while its trailing P/E is 47, leaving little room for error. The Synaptics deal is expected to close in mid-2027, and design wins in NVIDIA's MGX ecosystem are yet to translate into visible revenue.

Several sectors, including asset managers, semiconductor stocks, and silver miners, experienced significant declines following Fed Chair Kevin Warsh's press conference. ON Semiconductor (NASDAQ:ON) led the drop, falling 6%, while Boeing (NYSE:BA) weighed on the Dow. Economists are divided on future rate hikes, with some expecting more hikes and others predicting easing next year.

ON Semiconductor (ON) shares fell 8% after its Financial Analyst Day. The company introduced the Embedded Power Platform and outlined a $213B market opportunity by 2030. The stock dropped despite the announcements, partly due to a lack of near-term financial clarity and macroeconomic pressures, including the Fed's rate hike. The stock is now 50% below its 52-week high.

Texas Instruments' (TXN) data center revenues doubled year-over-year in Q2 2026, driven by AI infrastructure spending. Management expects continued growth, citing R&D investments and manufacturing capacity. Competitors Analog Devices (ADI) and ON Semiconductor (ON) also reported strong data center growth. TXN's stock is up 51.9% YTD, with a forward P/E of 27.84.

Bank of America raised its 2030 global semiconductor sales forecast to $3.2T, up from $2.7T, citing strong AI-driven demand. The firm upgraded price targets for Nvidia (NVDA), AMD (AMD), Marvell (MRVL), Applied Materials (AMAT), and Lam Research (LRCX), all rated Buy. Chip stocks rebounded modestly on Sept. 15 after recent sell-offs.