Goldman Sachs Begins Coverage of ON Semiconductor (ON) Stock with Neutral Rating

ON Semiconductor Corporation (NASDAQ:ON) is one of the 10 Best Semiconductor Stocks to Buy According to Reddit. Goldman Sachs analyst James Schneider initiated coverage of the company’s stock with a “Neutral” rating and a price objective of $60, as reported by The Fly. The firm initiated the US analog and radio frequency semiconductor sector and has a bullish view due to the cyclical opportunities it expects.

As per the firm, ON Semiconductor Corporation (NASDAQ:ON) remains well-placed to benefit from a cyclical recovery because of its prudent channel management and restructuring/cost initiatives. The analyst highlighted that the broader analog industry is expected to move towards trendline shipments over the next 12-18 months, with the firm being optimistic about companies that are shipping furthest below trend and those who have managed supply chains well. ON Semiconductor Corporation (NASDAQ:ON)’s Q1 2025 results exhibit the disciplined approach it has maintained, such as management of cost structure, right-sizing of manufacturing footprint, and rationalization of portfolio. Furthermore, ON Semiconductor Corporation (NASDAQ:ON) continues to see robust design win momentum, thanks to the industry-leading performance of its products.

Columbia Threadneedle Investments, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“The fund maintained overweight positions relative to the benchmark in semiconductor companies Broadcom, ON Semiconductor Corporation (NASDAQ:ON) and Marvell Technology, all of which detracted from performance relative to the fund’s benchmark. ON Semiconductor’s production has historically been tied to the automotive sector, and the forecast for car and truck sales remained uncertain, given the likelihood of price increases on newly manufactured vehicles due to recent U.S. tariff announcements. If the new administration maintains its stance on large-scale reciprocal tariffs around the globe, the automotive market is likely to see large price increases that get passed along to consumers.”

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Disclosure: None. This article is originally published at Insider Monkey.