Onsemi Shares Up 12% In 3 Months!

And Members Are Up 158% Potential Profit
Using A Weekly Call Option!

ON Semiconductor, commonly known as Onsemi, is working toward a future focused on automotive and industrial end markets. Management expects these two segments will combine to contribute 75% of revenues in 2025 compared to 60% in 2021.

This set the scene for Weekly Options USA Members to profit by 158% using an ON Weekly Options trade!

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Thursday, June 01, 2023

by Ian Harvey

Prelude…..

Shares of ON Semiconductor Corp (NASDAQ: ON) have added about 12% over the last three months.

Onsemi is reinvesting a huge portion of its profits at a high rate of return, which has caused the company to see substantial growth in its earnings.

ON Semiconductor, commonly known as Onsemi, is working toward a future focused on automotive and industrial end markets. Management expects these two segments will combine to contribute 75% of revenues in 2025 compared to 60% in 2021.

As well, it's positioned in high-growth markets within those industry verticals. It is a known factor that automotive companies are investing heavily in electric vehicles (EVs), advanced driver assistance systems (ADAS), and autonomous driving technology. Meanwhile, the automation of the industrial sector is another hot secular growth trend to invest in.

And, Onsemi has exposure to all these end markets.

Why the ON Weekly Options Trade was Executed?

ON Semiconductor Corp (NASDAQ: ON) has again proven that its refocus on automotive and industrial use cases was the right move at the right move. The Q1 results echo the news that onsemi shines. The company’s automotive-oriented revenue grew by 38% in Q1 and equaled 50% of revenue. The shift drives that strength to EVs and self-driving vehicles, which will drive demand for years.

The takeaways for investors include onsemi’s position within the market and its ability to produce growth where others cannot. This means that onsemi will lead the group and outperform the SOXX index in 2023.

“We continued our momentum with first quarter results exceeding expectations despite macroeconomic uncertainties … As secular tailwinds propel our business, we are prudently managing our operations to deliver consistent and predictable results in the current market environment,” said Hassane El-Khoury, President and CEO of onsemi.

The ON Weekly Options Trade Explained.....

** OPTION TRADE: Buy ON JUN 09 2023 90.000 CALLS - price at last close was $1.75 - adjust accordingly.

Obviously the results will vary from trader to trader depending on entry cost and exit price that was undertaken.

Entered the ON Weekly Options (CALL) Trade on Tuesday, May 30, 2023, at 10:38, for $1.04.

Sold half the ON weekly options contracts on Thursday, June 01, 2023 for $1.60; a potential profit of 54%.

Total Dollar Profit is $160 - $1.04 (cost of contract) = $56

Sold the remaining ON weekly options contracts on Thursday, June 07, 2023 for $2.68; a potential profit of 158%.

Total Dollar Profit is $268 - $1.04 (cost of contract) = $164

TOTAL PROFITS = $56 + $164 = $220

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ON Semiconductor Company Profile.....

ON Semiconductor Corporation is a global leader in the semiconductor industry, providing a comprehensive range of semiconductor solutions, including power and signal management, logic, discrete and custom devices, and sensor technologies. Headquartered in Phoenix, Arizona, the company operates in a highly competitive industry, serving customers across various industries, including automotive, industrial, communication, computing, consumer, and medical. In 2021 ON Semiconductor was ranked on the Fortune 500 list of the top 500 companies. 

ON Semiconductor has a diverse and experienced executive team composed of leaders with extensive finance, operations, and engineering backgrounds. Together, they bring a wealth of experience to the table, enabling the company to stay ahead of the curve and provide innovative solutions to its customers. The company's management team is led by Chief Executive Officer Hassane El-Khoury, who was appointed to the position of President and CEO in December 2020. Before joining the team at ON Semiconductor El-Khoury was the CEO of Cypress Semiconductor, which was sold to Infineon in Q1 of 2020. Other notable team members include Thad Trent, the Chief Financial Officer, and Felicity Carson, the Chief Marketing Officer. 

In recent years, ON Semiconductor has shown consistently positive financial performance. The company has reported steady revenue growth over the past three years, with annual revenue and net profit rising yearly. Furthermore, ON Semiconductor has maintained a conservative balance sheet, with total debt significantly lower than total assets. This financial stability has enabled the company to invest in research and development, expand its operations, and pursue strategic acquisitions. ON Semiconductor trades at a price-to-earnings ratio that aligns with its industry peers. The company's stock has performed well in recent years, with a five-year return of 85% and a ten-year return of 144%. Recently the stock has seen significant growth, driven by the company's strong financial performance and the acquisition of GT Advanced Technologies.

In 2022, ON Semiconductor completed the acquisition of GT Advanced Technologies, a leader in silicon carbide materials and technology. This acquisition positions the company to capitalize on the growing demand for silicon carbide materials in high-power, high-efficiency applications.

However, the semiconductor industry is highly competitive, and ON Semiconductor faces intense competition from established players and new entrants. The industry is also subject to technological advancements and regulatory changes that can significantly impact the company's operations. Additionally, the company's end markets are subject to economic and political factors that can affect product demand.

Despite these challenges, ON Semiconductor has several growth opportunities in the coming years. The company is investing in new products and technologies, such as wireless charging and advanced imaging sensors, with significant growth potential. Furthermore, the company is expanding in emerging markets, particularly in Asia, where it has seen strong product demand.

Further Aspects Relating To Onsemi …..

Onsemi’s intelligent power technology helps lower the weight, extends the range of EVs, and enables fast charging. Meanwhile, its intelligent sensing solutions enable industrial automation, ADAS, and autonomous driving.

There’s also a strong secular shift in investment toward EVs from internal combustion engines (ICEs), and there's no sign of a slowdown in spending on industrial automation.

Meanwhile, Onsemi's content per vehicle is far higher on EVs than on ICE vehicles, and the explosion of investment in digitalization in manufacturing, and the productivity improvements that it brings, ensure spending on sensing technology will remain strong. As such, the company looks set for long-term growth following a lull in 2023.

For further Information Read.....

“ON Semiconductor Shares Are Gaining Ground!”

Therefore…..

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