ON Semiconductor Corporation’s Tepid Q1’24 Guidance: Stock Remains Steady

February 12, 2024 | by


ON Semiconductor Corporation recently released a somewhat underwhelming Q1’24 guidance, causing some concern among investors. However, despite this cautious outlook, the company’s stock price has managed to hold steady. ON Semiconductor has successfully recovered most of its losses from January, a positive sign in an environment of potential disappointing growth in the upcoming year. The company is well-positioned to capitalize on the SiC market and is benefiting from the recovery in the automotive sector. While there may be short-term challenges to demand, ON’s recent market performance indicates that the worst may be behind them. Given the company’s strong long-term upward trend and robust performance, investors are encouraged to take advantage of the current market pessimism and consider buying ON Semiconductor stock before it regains its all-time highs.

ON Semiconductor Corporations Tepid Q124 Guidance: Stock Remains Steady

ON Semiconductor Corporation’s Q1’24 Guidance

ON Semiconductor Corporation recently issued its Q1’24 guidance, revealing a somewhat tepid outlook for the upcoming quarter. Despite this cautious guidance, the company’s stock did not experience a significant crash. In this article, we will delve into the potential implications of ON Semiconductor’s Q1’24 guidance and analyze its market performance, position in the SiC market, and near-term demand headwinds. Furthermore, we will assess ON’s market outperformance and its long-term uptrend bias, ultimately providing an investment recommendation based on our evaluation.

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ON’s Market Performance

Coming off the back of challenging times in January, ON Semiconductor has made a notable recovery. The company managed to claw back most of its losses from the beginning of the year. This resilience is an encouraging sign for investors, indicating the potential for long-term growth. Despite the possibility of 2024 being another year of disappointing growth, ON Semiconductor has outperformed the overall market, demonstrating its ability to weather storms and navigate uncertainties successfully.

ON Semiconductor Corporations Tepid Q124 Guidance: Stock Remains Steady

Position in the SiC Market

ON Semiconductor is well-positioned to gain a larger share in the Silicon Carbide (SiC) market. As the company participates in the recovery of the automotive market, it stands to benefit from the increased demand for SiC-powered vehicles. With the global push towards sustainable transportation and reduced carbon emissions, SiC technology presents a promising opportunity. ON Semiconductor’s involvement in this market recovery strengthens its long-term growth prospects and positions it favorably for future success.

Near-term Demand Headwinds

While ON Semiconductor’s market performance and position in the SiC market paint a positive picture, there are still near-term demand headwinds to consider. Factors such as supply chain disruptions, global economic uncertainties, and the ongoing COVID-19 pandemic can impact the demand outlook for ON Semiconductor’s products. These headwinds may introduce short-term risks and potentially dampen investor confidence. However, it is essential to analyze the company’s overall resilience and evaluate the potential long-term benefits before making investment decisions based solely on near-term challenges.

ON’s Market Outperformance

Despite the near-term demand headwinds, ON Semiconductor’s recent market outperformance provides significant implications for investor sentiment. The company’s ability to outshine the market and recover from challenging periods suggests that the worst may already be over. This positive market outperformance signifies a potential indication of a broader market recovery as well. Investors should consider this encouraging sign when evaluating ON Semiconductor’s stock and overall market conditions.

Buy Recommendation for Investors

In light of ON Semiconductor’s market outperformance, long-term growth prospects, and favorable position in the SiC market, it is recommended that investors consider buying shares of the company. The stability of ON’s long-term growth, despite potential headwinds and disappointing growth projections for 2024, showcases the company’s resilience and potential for further expansion. Investors who take advantage of the market’s current pessimism and invest in ON Semiconductor could benefit from future market upturns and capitalize on the potential for increased returns.

Long-term Uptrend Bias

One of the key factors supporting the investment recommendation for ON Semiconductor is its long-term uptrend bias. The company has demonstrated an ability to sustain growth in the face of challenges, highlighting its potential for continued success. By investing during times of market pessimism, investors can position themselves advantageously, potentially reaping the rewards as the market regains momentum. It is worth considering the timing of investments and taking advantage of opportunities while the market is still in a period of lower expectations rather than waiting for it to reach all-time highs.


In conclusion, ON Semiconductor Corporation’s Q1’24 guidance may have been tepid, but the stability of its stock despite this cautious outlook is notable. The company’s market performance, especially in recovering from January losses, highlights its resilience and potential for long-term growth. Its position in the SiC market and participation in the automotive market recovery further solidify its prospects. While near-term demand headwinds pose risks, ON’s exceptional market outperformance and long-term uptrend bias suggest a favorable outlook. Therefore, our recommendation is for investors to consider buying shares of ON Semiconductor, taking advantage of the current market conditions and the company’s solid prospects.


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