Is ON Semiconductor (ON) still a buy as we head towards 2026? Analysts at Morgan Stanley recently weighed in, adjusting their price target for the stock. Let’s dive into the details and see what it means for investors. Don’t forget to keep an eye on general market sentiment and news, as this can significantly impact stock prices.
## Morgan Stanley’s Take on ON
Analyst Joseph Moore from Morgan Stanley increased the price target on ON Semiconductor (NASDAQ: ON) to $56 from $55, maintaining an “Equal Weight” rating. This slight increase came after the company filed an 8-K revealing plans to recognize additional pre-tax non-cash impairment and accelerated depreciation charges, estimated between $200 million and $300 million.
These charges relate to long-lived assets within certain manufacturing facilities. However, management anticipates that this will reduce recurring depreciation expenses by approximately $10 million to $15 million in 2026. The analyst speculates that these impairments likely stem from ON’s Silicon Carbide manufacturing assets.
## ON Semiconductor’s Recent Performance
Beyond the analyst’s perspective, ON Semiconductor reported revenues of $1.5 billion for Q3 2025, compared to $1.76 billion for the same period in 2024, representing a 12% year-over-year decline. Despite this, diluted EPS stood at $0.63 in Q3 2025, compared to $0.41 in Q2 2025, showing signs of stabilization and growth in the AI sector.
ON Semiconductor specializes in intelligent sensing and power solutions. While the company shows potential, other AI stocks might offer higher returns with less risk. If you’re intrigued by undervalued AI opportunities, there are alternative options to explore. For example, you might also be interested in companies that are expected to benefit from tariffs and the onshoring trend.
