Chip-maker ON Semiconductor Corp. (NASDAQ: ONNN) posted better than expected results after the markets closed last Thursday, and the stock closed up more than 8.5% on Friday after posting a new 52-week high. Volume reached nearly 6-times the stock’s daily average of around 6 million shares traded.

The company posted fourth quarter earnings per share of $0.17 on revenues of $718 million, handily beating analysts’ consensus for EPS of $0.14 on revenues of $691 million. For the current quarter the company is guiding revenues in a range of $695 to $725 million.

ON’s consensus price target for 2014 is $9.81 and its forward earnings multiple is 9.79. Only Micron Technology Inc (NASDAQ: MU) among major chip makers has a lower multiple. Based on Friday’s closing price of $9.03 and a consensus price target of $9.81, the potential upside on the stock is barely 9%. But analysts will be taking a look at that price target given ON’s fourth quarter results.

In the fourth quarter ON generated 27% of its revenues from the automobile market and the company expects auto-related revenues to rise in the first quarter. Sales fell in ON’s communications market to 18% of the company total, which the company said was due to a broad-based inventory correction in the smartphone market. First quarter revenues are expected to be lower in this segment and in the company’s consumer segment due to normal seasonality.

ON is in the right place at the right time with its variety of application-specific products, mixed-signal processors, and power interface products. As the “Internet of Things” becomes a reality, ON’s products will make their way into more of those “things.”

The stock closed at $9.03 on Friday after posting a new 52-week high of $9.27. The 52-week low is $6.80.

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