ON Semiconductor (ON) Soars 11% on Aggressive Expansion Plan

We recently published 10 Stocks Stealing Market Spotlight. ON Semiconductor Corp. (NASDAQ:ON) is one of the best performers on Wednesday.

ON Semiconductor extended its winning streak to a 7th straight day on Wednesday, jumping 11.01 percent to close at $57.15 apiece as investors took heart from its partnership with Innoscience to expand the production of gallium nitride (GaN) power devices in a bid to capture the $2.9 billion market.

In a statement, ON Semiconductor Corp. (NASDAQ:ON) said it signed a memorandum of understanding under which they would collaborate to scale up GaN manufacturing worldwide for faster market availability and adoption.

It said they aim to target various markets such as robotics, automotive, telecommunications, and AI data center, among others.

“Until now, in the low and medium voltage segments, cost and supply constraints have limited its widespread adoption. Through a collaboration with Innoscience, we expect to be able to access the industry’s largest GaN production footprint and quickly scale our GaN offerings for customers worldwide to enable broader adoption in mainstream power applications,” said ON Semiconductor Corp. (NASDAQ:ON) Vice President for Corporate Strategy Antoine Jalabert.

While we acknowledge the potential of ON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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