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ON vs STM
Which Stock Would AI Choose? ON Semiconductor (ON) vs. STMicroelectronics (STM) Stock Comparison
Key Takeaways
- ON Semiconductor and STMicroelectronics both operate in the semiconductor sector with exposure to artificial intelligence (AI) infrastructure and automotive markets, though their primary revenue drivers differ in emphasis.
- STM has delivered stronger year-to-date (YTD) stock performance compared with ON amid AI-related demand signals and multiple analyst price target increases.
- ON recently announced a major acquisition and facility divestitures aimed at expanding its AI and physical AI capabilities while improving cost efficiency.
- STM raised its 2026 data center revenue target significantly in early June, citing sustained AI infrastructure demand, while also conducting ongoing share repurchases.
- Both stocks experienced sector-wide pressure in mid-July amid broader chip stock volatility, with STM trading near recent highs before the pullback.
- Upcoming earnings releases—STM on July 23 and ON on August 3—will provide further clarity on quarterly trends and margin trajectories.
Introduction
ON Semiconductor and STMicroelectronics represent two established players in the global semiconductor industry, each with distinct yet overlapping exposures to high-growth areas such as power management, automotive electronics, and emerging AI applications. This comparison examines their recent market positioning, operational developments, and relative stock performance to assist investors and traders evaluating opportunities within the semiconductor supply chain. Market participants focused on cyclical recovery, AI-driven demand, or cross-border technology exposure may find the analysis particularly relevant when assessing portfolio allocation or tactical trading decisions.
ON Overview and Recent Performance
ON Semiconductor designs and manufactures power and analog semiconductors, image sensors, and related solutions primarily serving automotive, industrial, and communications markets. In recent weeks, the company announced an all-stock acquisition of Synaptics valued at approximately $7 billion to broaden its reach in AI-enabled devices and physical AI applications. It also agreed to divest two manufacturing facilities as part of a cost-reduction initiative expected to generate annual savings. These moves occurred against a backdrop of sector volatility, with the stock reflecting mixed sentiment following the June announcements. Broader market activity in the semiconductor space has influenced ON’s price behavior, underscoring its sensitivity to AI infrastructure spending and automotive production cycles.
STM Overview and Recent Performance
STMicroelectronics develops a wide range of semiconductors including microcontrollers, power devices, sensors, and connectivity solutions for automotive, industrial, personal electronics, and communications end markets. Recent market activity featured a notable June announcement raising the company’s 2026 data center revenue target to about $1 billion, driven by accelerating AI infrastructure demand. STM has also maintained an active share repurchase program and attracted multiple analyst upgrades with higher price targets. Stock performance reflected strong YTD gains earlier in the period before broader chip sector weakness in mid-July contributed to a pullback. The company’s diversified end-market exposure has helped moderate volatility relative to more narrowly focused peers amid fluctuating sentiment.
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Head-to-Head Comparison
ON Semiconductor maintains a more concentrated focus on power management and sensing technologies, positioning it to capture growth in AI data center power delivery and automotive electrification. In contrast, STMicroelectronics offers broader diversification across automotive, industrial, and consumer segments, supplemented by a recently amplified data center push. Growth drivers for ON include the Synaptics acquisition and operational streamlining, while STM benefits from explicit upward revisions to AI-related revenue forecasts and sustained analyst support. Recent momentum favored STM on a YTD basis, though both names encountered headwinds from sector rotation in July. Risk factors for ON encompass integration challenges from the large acquisition and manufacturing footprint adjustments; for STM, exposure to cyclical end markets and execution on capacity expansions represent key variables. Market sentiment has reflected these contrasts, with STM drawing more frequent positive analyst commentary on structural AI tailwinds in recent weeks.
Tickeron AI Verdict
Based on observable factors such as trend consistency, recent catalysts, and relative positioning within the semiconductor sector, Tickeron’s AI would currently assign a modestly higher probability of favorable near-term performance to STM. This assessment reflects STM’s explicit data center target upgrade, ongoing capital return activity, and broader analyst momentum, though execution on upcoming earnings and sustained AI demand remain critical variables that could shift the relative outlook.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ON is a Hold and STM is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ON’s FA Score shows that 1 FA rating(s) are green whileSTM’s FA Score has 1 green FA rating(s).
- ON’s FA Score: 1 green, 4 red.
- STM’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ON’s TA Score shows that 4 TA indicator(s) are bullish while STM’s TA Score has 4 bullish TA indicator(s).
- ON’s TA Score: 4 bullish, 5 bearish.
- STM’s TA Score: 4 bullish, 5 bearish.
Price Growth
ON (@Semiconductors) experienced а -0.64% price change this week, while STM (@Semiconductors) price change was -16.95% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was -1.99%. For the same industry, the average monthly price growth was -15.50%, and the average quarterly price growth was +36.88%.
Reported Earning Dates
ON is expected to report earnings on Aug 03, 2026.
STM is expected to report earnings on Oct 29, 2026.
Industries' Descriptions
@Semiconductors (-1.99% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
| ON | STM | ON / STM | |
| Capitalization | 33.8B | 48.7B | 69% |
| EBITDA | 1.52B | 2.32B | 66% |
| Gain YTD | 60.314 | 99.480 | 61% |
| P/E Ratio | 63.83 | 101.06 | 63% |
| Revenue | 6.06B | 12.4B | 49% |
| Total Cash | 2.4B | 102M | 2,357% |
| Total Debt | 3.01B | 2.78B | 108% |
ON | STM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 56 | 56 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 55 Fair valued | 61 Fair valued | |
PROFIT vs RISK RATING 1..100 | 63 | 72 | |
SMR RATING 1..100 | 79 | 91 | |
PRICE GROWTH RATING 1..100 | 50 | 41 | |
P/E GROWTH RATING 1..100 | 16 | 5 | |
SEASONALITY SCORE 1..100 | 50 | 75 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ON's Valuation (55) in the Semiconductors industry is in the same range as STM (61). This means that ON’s stock grew similarly to STM’s over the last 12 months.
ON's Profit vs Risk Rating (63) in the Semiconductors industry is in the same range as STM (72). This means that ON’s stock grew similarly to STM’s over the last 12 months.
ON's SMR Rating (79) in the Semiconductors industry is in the same range as STM (91). This means that ON’s stock grew similarly to STM’s over the last 12 months.
STM's Price Growth Rating (41) in the Semiconductors industry is in the same range as ON (50). This means that STM’s stock grew similarly to ON’s over the last 12 months.
STM's P/E Growth Rating (5) in the Semiconductors industry is in the same range as ON (16). This means that STM’s stock grew similarly to ON’s over the last 12 months.
| ON | STM | |
|---|---|---|
| RSI ODDS (%) | N/A | 2 days ago 84% |
| Stochastic ODDS (%) | 2 days ago 77% | 2 days ago 71% |
| Momentum ODDS (%) | 2 days ago 83% | 2 days ago 74% |
| MACD ODDS (%) | 2 days ago 78% | N/A |
| TrendWeek ODDS (%) | 2 days ago 75% | 2 days ago 70% |
| TrendMonth ODDS (%) | 2 days ago 74% | 2 days ago 71% |
| Advances ODDS (%) | 4 days ago 75% | 4 days ago 71% |
| Declines ODDS (%) | 2 days ago 76% | 2 days ago 71% |
| BollingerBands ODDS (%) | 2 days ago 79% | 2 days ago 76% |
| Aroon ODDS (%) | 2 days ago 67% | 2 days ago 66% |
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ON and
Correlation & Price change
A.I.dvisor indicates that over the last year, ON has been closely correlated with MCHP. These tickers have moved in lockstep 76% of the time. This A.I.-generated data suggests there is a high statistical probability that if ON jumps, then MCHP could also see price increases.
STM and
Correlation & Price change
A.I.dvisor indicates that over the last year, STM has been closely correlated with ON. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if STM jumps, then ON could also see price increases.
| Ticker / NAME | Correlation To STM | 1D Price Change % | ||
|---|---|---|---|---|
| STM | 100% | -3.65% | ||
| ON - STM | 72% Closely correlated | -3.68% | ||
| ENTG - STM | 69% Closely correlated | -4.55% | ||
| MCHPP - STM | 68% Closely correlated | -2.59% | ||
| MCHP - STM | 67% Closely correlated | -3.06% | ||
| KLIC - STM | 67% Closely correlated | -4.48% | ||
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