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Here's How Much You'd Have If You Invested $1000 in ON Semiconductor Corp. a Decade Ago

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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in ON Semiconductor Corp. (ON - Free Report) ten years ago? It may not have been easy to hold on to ON for all that time, but if you did, how much would your investment be worth today?

ON Semiconductor Corp.'s Business In-Depth

With that in mind, let's take a look at ON Semiconductor Corp.'s main business drivers.

onsemi, is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components. The company was spun off from Motorola in Aug 1999 and went public through an IPO in May 2000.

onsemi’s product lines include discretes, such as bipolar transistors, diodes, filters, FETs, rectifiers and thyristors.

onsemi’s acquisition of GT Advanced Technologies will help the company to grow and innovate disruptive intelligent power technologies. Moreover secure supply of SiC to meet growing demand of customers for SiC based solutions. Moreover, the company’s acquisitions of Cypress Semiconductor’s CMOS Image Sensor Business Unit, SANYO Semiconductor, AMI Semiconductor, Analog Devices’ power PC controller business, CMD, Catalyst, and SoundDesign gave it new technical capabilities, some custom ASIC products, higher-margin products, exposure to new end markets and greater product breadth.

The power management product line includes AC-DC controllers and regulators, DC-DC converters and regulators, drivers, thermal managers, and voltage controllers, references and supervisors.

The logic product line includes clocking, memory, differential logic and standard logic products.

Signal processing products include amplifiers and comparators, analog switches, digital potentiometers, DSP systems and interfaces.

The company also offers custom application specific integrated circuits (ASICs), foundry services and memory products.

Customers include OEMs, electronic manufacturing service (EMS) providers and distributors. Top OEM customers include Motorola, Delta, Hewlett-Packard, Samsung, Siemens, Apple, Dell, Nokia, Intel, Sony, Continental Automotive Systems, DaimlerChrysler, Delphi, TRW and Visteon.

Top distributor customers include Arrow, Avnet, EBV Elektronik, Future, Solomon Enterprise and World Peace. Top EMS customers are Flextronics, Jabil and Celestica.

Phoenix, AZ-based onsemi reported revenues of $6.74 billion in 2021. The company generated 13.8% of total revenues in 2021 from the United States.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in ON Semiconductor Corp. ten years ago, you're likely feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in May 2012 would be worth $7,520.75, or a 652.07% gain, as of May 16, 2022. Investors should keep in mind that this return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 197.32% and gold's return of 12.93% over the same time frame.

Analysts are anticipating more upside for ON.

onsemi is benefiting from broad-based strength across industrial, computing, consumer and automotive end-markets for both silicon carbide and insulated-gate bipolar transistor-based products. The company continues to gain traction among electric vehicle manufacturers. onsemi benefited from a strong demand environment, particularly for power and sensing products in automotive and industrial end markets. The company’s plan to exit non-core businesses and fab-lighter strategy are expected to expand gross margin in the long term. However, the company’s supply chain constraints are still persistent especially for certain products that are manufactured by its foundry partners. onsemi expects that the demand will continue to outpace supply throughout 2022. Shares have underperformed the industry year to date.

Over the past four weeks, shares have rallied 5.48%, and there have been 12 higher earnings estimate revisions in the past two months for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.

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