ON Semiconductor Corp. shares closed at a fresh 52-week high of $103.03 on May 1, gaining 2.2% in anticipation of the chipmaker's first-quarter earnings report due after the market close on May 4. The stock's upward momentum marks its third consecutive day of gains, with trading volume exceeding the 50-day average, according to MarketWatch data.
Earnings Expectations and Market Context
Wall Street analysts project ON Semiconductor to report adjusted earnings of approximately $0.62 per share on revenue of $1.49 billion for the quarter ended April 3. The company's own guidance had forecast revenue in the range of $1.435 billion to $1.535 billion, with adjusted earnings per share between $0.56 and $0.66. Management is scheduled to hold a conference call at 5 p.m. EDT on Monday to discuss the results.
The upcoming report will provide critical insight into whether the recent rebound in automotive and industrial chip demand is sustainable or if it has been overdone. In February, CEO Hassane El-Khoury noted "increasing signs of stabilization" across key segments, though fourth-quarter revenue still declined 11% year over year to $1.53 billion.
Electric Vehicle Partnerships Fuel Optimism
The stock's recent surge has been driven by two significant electric-vehicle (EV) partnership announcements in China. On April 28, ON Semiconductor expanded its collaboration with Geely Auto Group, integrating its EliteSiC technology into models built on Geely's SEA-S platform. Silicon carbide (SiC) is a high-voltage chip material that reduces energy loss compared to standard silicon, making it crucial for EV power systems.
El-Khoury described the EV sector as entering "a new phase," with automakers and chip companies collaborating earlier in vehicle development. Geely Auto Group CEO Gan JiaYue echoed this sentiment, emphasizing the importance of tighter integration with technology partners as the company accelerates its electrification strategy.
Just a day earlier, ON Semiconductor announced it is deepening its long-term partnership with NIO, helping the Chinese EV maker transition from 400-volt to 900-volt vehicle platforms. The higher-voltage architecture enables faster charging and improved energy efficiency. Alan Zeng, CEO of NIO's powertrain division, described the evolution from early 400V systems to today's 900V platforms.
Competitive Landscape and Risks
ON Semiconductor's stock performance on May 1 outpaced several notable chip peers. Nvidia slipped 0.56%, Qualcomm lost 1.43%, and Broadcom managed a 0.92% gain, according to MarketWatch data.
Despite the positive momentum, risks remain. Shares have rallied ahead of earnings, and even a solid quarterly report could disappoint if management signals a cautious outlook for the second quarter or flags soft demand in automotive and industrial segments. The company's February update projected a 15% decline in full-year 2025 revenue.
To navigate the cyclical downturn, ON Semiconductor has focused on cost reductions and returning capital to shareholders. In February, the company reported $1.4 billion in free cash flow for 2025 and authorized a new $6 billion share buyback program over the next three years.
ON Semiconductor manufactures power and sensing chips used in automobiles, factories, and AI-focused data centers. Investors will be watching Monday's earnings call closely to see if recent EV contracts and ongoing chip demand are translating into higher sales.
