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ON Semiconductor New Products to Aid High-Power Applications

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ON Semiconductor (ON - Free Report) recently unveiled IEEE 802.3bt standard compliant interface controllers, NCP1095 and NCP1096.

The latest controllers are integrated with robust features, including current limiting, auto-classification and detection. These features enable customers to deploy a Power over Ethernet (PoE) interface.

The new controllers are integrated with either an internal (NCP1096) hot-swap Field Effect Transistor (FET) or external (NCP1095), which lowers resistance. Moreover, to accelerate PoE applications, the new controllers can be utilized with select DC-DC controller and MOSFETs.

When clubbed together, the devices facilitate power efficient PoE interfaces, scaling power support high-speed connectivity capabilities of up to 90 Watt (W) or even 100 W per the requirements.

Increasing popularity of smart lighting, connected surveillance cameras with high-resolution, and wireless access points are resulting in a surge in demand for devices to support these high-power applications. We believe the new energy efficient product roll outs are in sync with this emerging demand.
 

IEEE 802.3bt Standard Compliance Holds Promise

The latest IEEE 802.3bt standard for PoE incorporates “Autoclass” feature to allow Powered Devices (PDs) optimally manage power requirements, while maximizing bandwidth and available energy. It enables complex IoT endpoints across bigger networks.

In fact, the new standard supports power of up to 90 W, compared with the prior “IEEE 802.at” standard’s 30 W limit, which is a major positive.

Moreover, PoE interfaces can utilize enhanced connectivity and power capabilities of IEEE 802.3bt to reduce complexity in network topologies, which enables improved ‘plug and play’ client experience.

Per IHS Markit’s senior analyst as revealed by ON Semiconductor, PoE is projected to witness a CAGR of 14% between 2017 and 2022. We believe the company’s portfolio expansion with new controllers aimed at enabling high-power applications in this IoT era, augurs well in the longer haul.

To Conclude

Accelerated deployment of 5G is expected to bolster demand for the company’s latest controllers, which enable high-powered applications with seamless connectivity.

Although ON Semiconductor’s innovative product roll outs enhance long-term growth prospects, weakness in majority of the company’s end-markets remains a headwind.

Moreover, Huawei related headwinds, soft demand from Greater China and Asia, uncertainty in macroeconomic environment; stiff competition and high debt burden remain major concerns.

Zacks Rank & Stocks to Consider

Currently, ON Semiconductor carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the broader technology sector worth considering are HubSpot (HUBS - Free Report) , Fortinet (FTNT - Free Report) and Anixter International , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for HubSpot, Fortinet and Anixter is currently pegged at 49.43%, 15.5% and 8%, respectively.

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