An analyst firm just made the bull case for On Semiconductor (NASDAQ:ON | ON Price Prediction). B. Riley analyst Craig Ellis upgraded On Semiconductor stock to Buy from Neutral, lifting the firm’s price target to $115 from $64. That’s a near-doubling of the target and one of the more aggressive conviction calls on a U.S. chipmaker this spring.
The call lands as ON Semiconductor shares have already been running hot, with the stock trading around $98 intraday. For retirement-focused investors, the upgrade reframes ON stock as a cyclical recovery story tied to power semiconductors, silicon carbide for EVs, and industrial automation.
| Ticker | Company | Firm | Action | Old Rating | New Rating | Old Target | New Target |
|---|---|---|---|---|---|---|---|
| ON | ON Semiconductor | B. Riley | Upgrade | Neutral | Buy | $64 | $115 |
The Analyst’s Case
Ellis framed the upgrade around execution for On Semiconductor. B. Riley expects in-line to selectively better quarterly results from specialty materials and chip names despite persisting geopolitical risks. In short, the analyst thinks the cyclical trough is behind ON, and that disciplined cost structure plus product wins should drive the next leg higher.
Management’s own commentary supports that pivot. On Semiconductor CEO Hassane El-Khoury told investors onsemi saw “increasing signs of stabilization” in its key markets.
Company Snapshot
On Semiconductor designs intelligent power and sensing chips across three segments: Power Solutions, Analog and Mixed-Signal, and Intelligent Sensing. The company is leaning into silicon carbide and vertical gallium nitride (vGaN) power semiconductors, as well.
The numbers show a business absorbing a cycle. On Semiconductor’s full-year 2025 revenue came in at $5.995 billion, down 15% year over year, while free cash flow hit a record $1.418 billion. Management authorized a new $6 billion, three-year share repurchase program.
Why the Move Matters Now
On Semiconductor stock carries a heavy trailing P/E ratio of 307x, but its forward P/E ratio of 31x reflects expected earnings recovery. The market cap sits near $35 billion, with consensus split at 11 Buy ratings and 23 Holds.
On Semiconductor’s Q1 2026 guidance calls for revenue of $1.435 billion to $1.535 billion and EPS of $0.56 to $0.66, signaling sequential stabilization. For context on the broader sector setup, see our recent semiconductor recovery coverage.
What It Means for Your Portfolio
B. Riley’s On Semiconductor stock price target raise to $115 is a clear bet that automotive and industrial end markets reaccelerate in 2026. If that thesis plays out, ON stock could benefit from operating leverage as margins normalize off the 38% non-GAAP gross margin trough.
Yet, the risks are real. Barclays flagged high automotive and China exposure when it initiated On Semiconductor stock at Equal-Weight, and geopolitical tensions could pressure demand. Insider selling, including CFO activity in April, adds a cautionary signal.
For long-term investors, the revised outlook warrants a closer look at On Semiconductor stock, even as near-term volatility remains a real risk. Moderate position sizing and watching for whether On Semiconductor’s Q1 2026 results confirm the stabilization narrative on May 4 may be the prudent approach.
Top Gaining Stocks
Top Losing Stocks