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The government lowered fuel-economy targets for 2031, requiring cars to average about 35 miles per gallon instead of the previously planned 50. This change makes it easier for carmakers to keep selling gas-powered vehicles for longer without facing fines.
This matters for the company because it makes the specialized power chips that act as the nervous system for electric vehicles. These chips help cars drive further on a single charge and earn the company much more profit per car than gas-engine parts do. If these new rules slow down the pace at which carmakers switch to electric models, it could delay the growth the company is counting on from its automotive business.
Source: WSJ
Truist Financial lowered its price target for the chipmaker to $75, down from $91. This new target is slightly below where the stock currently trades and sits well under the average analyst target of $100. Because the firm kept its rating the same, this is a routine adjustment to match the stock's recent price movement rather than a change in how they view the business. It reflects the broader cooling in the chip market that has weighed on the sector recently.
Source: Truist Financial
Cantor Fitzgerald lowered its price target for the company to $90 from $110 on Thursday. The firm kept its rating at neutral, which suggests they do not see a clear reason to buy or sell the stock right now. This move brings the firm closer to the average analyst target of $96. While the new target is lower than before, it is still well above the current stock price of roughly $69.
Source: Cantor Fitzgerald
The company introduced its Embedded Power Platform, a new way of building power systems that uses the silicon wafer itself as the protective package. This approach allows for much tighter integration of components, which is critical for the high-power needs of AI data centers and electric car engines where space and heat are constant challenges.
This is a move to stay ahead in the competitive market for power management. By making the chips more compact and efficient, the company is trying to lock in its role as the primary supplier for the next generation of high-performance hardware.
Source: GlobeNewsWire
Subaru has agreed to test the company's new power architecture for use in its future electric vehicle designs. The carmaker will use engineering samples and simulation models to see if this more integrated approach can simplify how power is managed within the car. While this is only an evaluation phase and not a guaranteed contract, it shows that major carmakers are looking at the company's newest technology to solve the efficiency and range problems that define the electric car market.
Source: GlobeNewsWire
Management has hit its targets for six straight quarters, usually by just a few cents. This shows they have a firm grip on their costs and set bars they know they can clear.
| Expectation | |
|---|---|
| EPS | $0.88 |
| Revenue | $1.70B |
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