A Decade-Long Investment in ON Semiconductor Corp. Yields Over 1200% Returns
If you had invested $1000 in ON Semiconductor Corp. (ON) a decade ago, you would be sitting on a significant profit today. A $1000 investment made in September 2013 would be worth $13,049.87 as of September 14, 2023, according to calculations. This represents a 1,204.99% gain, excluding dividends but including price appreciation. ON Semiconductor Corp., also known as onsemi, is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components. The company was spun off from Motorola in August 1999 and went public through an IPO in May 2000. It offers a wide range of products, including bipolar transistors, diodes, filters, FETs, rectifiers, and thyristors. The company's acquisition of GT Advanced Technologies has allowed it to grow and innovate disruptive intelligent power technologies. Additionally, onsemi has acquired several other companies, including Cypress Semiconductor’s CMOS Image Sensor Business Unit, SANYO Semiconductor, AMI Semiconductor, and Analog Devices’ power PC controller business, among others. These acquisitions have given the company new technical capabilities, some custom ASIC products, higher-margin products, exposure to new end markets, and greater product breadth. onsemi reported revenues of $8.33 billion in 2022, with 18% of total revenues coming from the United States. The company's shares have outperformed the industry year to date, with shares rallying 5.04% over the past four weeks. Looking ahead, analysts are expecting more upside for ON. The company is benefiting from solid momentum across automotive and industrial end-markets, and its silicon carbide dominance and intelligent power and sensing solution are winning market share in the automotive segment. However, investments on silicon carbide ramp will hurt the margin in the near term, and the company's frequent buyouts have been impacting its balance sheet.
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