• In early June 2026, onsemi launched its cloud-based Elite Pairing Studio, an online tool that helps engineers more easily match silicon carbide (SiC) MOSFETs with gate drivers for power-hungry applications such as AI data centers, electric vehicles, and industrial systems.
• This industry-first pairing environment effectively ties onsemi’s SiC device portfolio to its broader simulation ecosystem, deepening customer engagement and embedding its components earlier in the power system design process.
• We’ll now examine how the Elite Pairing Studio, by embedding onsemi deeper in SiC power design workflows, influences its investment narrative.

The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 14 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.

ON Semiconductor Investment Narrative Recap

To own ON Semiconductor, you need to believe its SiC and power portfolio can offset auto cyclicality, capacity underutilization, and revenue lost from exiting legacy products. The Elite Pairing Studio reinforces that thesis by making ON’s SiC parts easier to design in, but it does not remove short term risks around auto demand softness or margin pressure from suboptimal fab utilization. Its main impact is strengthening the longer term SiC adoption story rather than changing the near term earnings catalyst.

The most relevant recent development alongside Elite Pairing Studio is ON’s expanded collaborations with NIO and Geely around EliteSiC in higher voltage EV platforms. Together, these moves tie ON’s SiC devices more tightly into both the design and deployment phases of electrified power systems, which matters for investors watching whether newer segments like EV and AI data centers can grow fast enough to offset planned exits from lower margin businesses and support the SiC led margin improvement narrative.

Yet alongside the excitement around ON’s design tools, investors should be aware that underutilized fabs and EV demand cycles could still...

ON Semiconductor's narrative projects $8.1 billion revenue and $2.2 billion earnings by 2029. This requires 10.3% yearly revenue growth and an earnings increase of about $1.6 billion from $573.7 million today.

Uncover how ON Semiconductor's forecasts yield a $103.97 fair value, a 15% downside to its current price.

Exploring Other Perspectives

The most optimistic analysts already expected ON to lift earnings to about US$2.7 billion, yet Elite Pairing Studio and execution risk in SiC show how views on that path can differ widely.

Explore 5 other fair value estimates on ON Semiconductor - why the stock might be worth as much as 16% more than the current price!

Decide For Yourself

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your ON Semiconductor research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free ON Semiconductor research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ON Semiconductor's overall financial health at a glance.

Contemplating Other Strategies?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• Uncover the next big thing with 24 elite penny stocks that balance risk and reward.
• Explore 31 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.
• AI is about to change healthcare. These 41 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.