The Bull Case For ON Semiconductor (ON) Could Change Following $6 Billion Share Buyback Authorization Announcement

• In November 2025, ON Semiconductor Corporation announced a new share repurchase program authorizing the company to buy back up to US$6 billion of its own stock, with the authorization valid through December 31, 2028.
• This substantial buyback reflects the board's confidence in the company's long-term strategy and its investments in advanced technologies across automotive, industrial, and AI data center markets.
• We'll consider how the US$6 billion share buyback authorization may affect ON Semiconductor's investment narrative and anticipated financial outlook.

The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

ON Semiconductor Investment Narrative Recap

The core investment case for ON Semiconductor hinges on its ability to capture growth in automotive, industrial, and AI data center markets, all while improving margins through innovation and efficiency. The recent US$6 billion share buyback program signals management's confidence, but it does not materially alter the most important short-term catalyst, successful expansion in next-generation auto and AI platforms, or mitigate the near-term headwind from ongoing manufacturing underutilization.

Among recent company developments, the October 28 collaboration with Teledyne Technologies to advance the Treo platform for ASIC development stands out. This partnership reinforces ON Semiconductor’s efforts to penetrate industrial and imaging markets, supporting the same high-growth areas targeted by its capital allocation strategy and potentially underpinning longer-term margin improvements.

However, investors should not overlook the ongoing challenges from underutilized manufacturing capacity and what that means if end-market demand remains soft...

Read the full narrative on ON Semiconductor (it's free!)

ON Semiconductor's narrative projects $7.5 billion revenue and $1.9 billion earnings by 2028. This requires 5.4% yearly revenue growth and an increase of about $1.4 billion in earnings from the current $465.8 million.

Uncover how ON Semiconductor's forecasts yield a $58.67 fair value, a 26% upside to its current price.

Exploring Other Perspectives

Eleven investors from the Simply Wall St Community estimate ON Semiconductor’s fair value between US$49.59 and US$70 per share. While some see potential, the persistent risk of low manufacturing utilization continues to weigh on sentiment and future profitability.

Explore 11 other fair value estimates on ON Semiconductor - why the stock might be worth as much as 50% more than the current price!

Build Your Own ON Semiconductor Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ON Semiconductor research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free ON Semiconductor research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ON Semiconductor's overall financial health at a glance.

Ready For A Different Approach?

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

• Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 36 best rare earth metal stocks of the very few that mine this essential strategic resource.
• Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com