A long-term red-dotted trendline, converging near the $17 region, also acts as a significant support zone where the stock may find a long-term bottom. As the price has recently tested the $60 region, a strong correction has emerged around the 61.8% retracement zone.
Given this setup, investors can consider buying the stock within the $30 to $48 range and adding more positions if it approaches the $17 support area. A decisive monthly close above $60 would likely trigger another strong rally, potentially leading to new record highs in the coming months. Therefore, accumulating shares at lower levels within these long-term support zones is considered a strategic move for long-term investors.
Risk Factors
ON Semiconductor faces demand uncertainty in its key markets. A slowdown in EV sales or AI data centre investments could delay customer orders. The company’s reliance on the Power Solutions Group means weakness in this segment could weigh heavily on overall revenue. Moreover, the competition from other semiconductor makers, especially in silicon carbide technology, could also pressure margins and market share.
On the other hand, the geopolitical and trade risks remain high. Trump’s tariff policy benefits ON due to its US production, but global supply chain disruptions could raise component costs and delay shipments. Any escalation in US-China tensions could reduce access to overseas markets and impact long-term growth.
From a technical perspective, a break below the long-term support of $17 could trigger deeper declines.
Conclusion: ON Semiconductor’s Long-Term Growth Potential
ON Semiconductor is well-positioned for long-term growth. The company benefits from strong demand in EV and AI data centres. Its silicon carbide technology delivers efficiency, cost savings, and performance advantages. Moreover, the partnerships with major players like Xiaomi and Nvidia enhance its market presence. The US manufacturing base offers a competitive edge under current tariff policies. These factors support revenue growth and margin stability in high-value markets.
On the other hand, the technical charts also favour a long-term bullish view. The stock price trades near key support zones, offering attractive entry points for long-term investors. A breakout above $60 could trigger another rally toward record highs. ON Semiconductor benefits from strong industry catalysts, strategic positioning, and resilient financial performance, despite the short-term volatility. These factors make it an appealing option for investors seeking long-term capital appreciation. Investors can buy ON Semiconductor within the $45 to $30 range and position for long-term growth potential.
