BofA Maintains Neutral on On Semiconductor (ON) Despite Price Target Cut

On Semiconductor Corporation (NASDAQ:ON) is one of thebest electric vehicle supply chain stocks to buy right now. On September 5, BofA maintained its Neutral rating on On Semiconductor Corporation (NASDAQ:ON), while reducing its 12-month target on the company to $52 from $56. As of September 5, the stock was trading at $49.11, giving it an implied upside of 14.02%. However, the other Wall Street analysts are more bullish on the stock. The average Wall Street 12-month implied upside is 17.06%.

On Semiconductor, which provides advanced semiconductor tech essential for EVs, is deepening its presence in the market. The company is supporting automakers like Xiaomi with silicon carbide (SiC) technology to extend charge range and improve performance.

On Semi’s EliteSiC solutions are now integrated into some of Xiaomi's electric SUVs. It also has a partnership with Schaeffler, focusing on next-gen traction inverters for hybrid cars. The company saw a 4% year-over-year decrease in automotive revenue in Q2 of 2025, which accounts for a significant percentage of the company’s overall revenue. However, the company expects demand for the segment to rebound with ongoing EV revamps.

While we acknowledge the potential of ON as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.