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ON vs TXN
Which Stock Would AI Choose? ON Semiconductor Corporation (ON) vs. Texas Instruments Incorporated (TXN) Stock Comparison
Key Takeaways
- ON and TXN are both semiconductor companies exposed to automotive, industrial, and power management markets, with TXN offering broader diversification and higher profitability margins.
- Recent market activity shows both stocks pulling back from June 2026 highs, with ON closing at $76.14 and TXN at $268.70 on September 11, 2026.
- TXN demonstrates stronger year-to-date performance (approximately 55%) and larger market capitalization ($245 billion) compared to ON ($30 billion range).
- ON focuses on high-growth power and sensing segments, while TXN benefits from consistent cash generation and a dividend yield around 2.1%.
- Sector sentiment has been influenced by AI data center demand and electrification trends, supporting relative resilience in both names amid broader semiconductor volatility.
- Trade-offs include ON's higher beta (around 2.0) versus TXN's more stable profile (beta near 1.2).
Introduction
This comparison examines ON Semiconductor Corporation and Texas Instruments Incorporated, two established players in the semiconductor industry. Both companies supply components critical to automotive, industrial, and emerging AI-related applications, making their stocks relevant for investors seeking exposure to long-term technology and electrification trends. Traders monitoring relative performance, momentum shifts, and sector positioning may find the analysis useful for portfolio allocation decisions within the technology sector. The review draws on observable market data and recent developments to highlight contrasts in business scale, financial characteristics, and positioning.
ON Overview and Recent Performance
ON Semiconductor Corporation specializes in analog and mixed-signal semiconductors, with emphasis on power management and sensing solutions for automotive and industrial end markets. In recent weeks, the stock has experienced volatility following a June 2026 peak near $134.92, closing at $76.14 on September 11 amid broader sector movements. Year-to-date gains stand at approximately 40.6%, though the share price has declined about 6-8% over the past month. Key influences on sentiment include ongoing demand for electrification components and AI infrastructure, tempered by inventory adjustments and macroeconomic factors affecting semiconductor demand. The company maintains a market capitalization near $29.6 billion and exhibits higher volatility relative to peers.
TXN Overview and Recent Performance
Texas Instruments Incorporated is a leading provider of analog chips used in a wide range of applications, including industrial, automotive, and data center markets. Recent market activity has seen the stock trade near $268.70 as of the September 11 close, after reaching a June high of $334.03. Year-to-date performance shows gains of roughly 55%, with a more modest monthly decline around 5%. Broader portfolio exposure and steady cash flow generation have supported relative stability. Developments such as strong quarterly revenue growth in industrial and automotive segments have influenced positive sentiment, while the company’s scale—market capitalization near $245 billion—provides a buffer compared to smaller peers. A dividend yield near 2.1% adds to its profile for income-oriented investors.
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Head-to-Head Comparison
ON and TXN share exposure to automotive and industrial semiconductor demand but differ in scale and focus. ON concentrates on power and sensing technologies, potentially offering higher growth sensitivity to electrification and AI trends, though with elevated volatility (beta near 2.0). TXN provides broader diversification across analog products, delivering stronger gross margins (around 61%) and consistent free cash flow alongside a dividend. Recent momentum favors TXN on a year-to-date basis, while ON trades at a lower valuation multiple. Risk factors include ON’s greater sensitivity to cyclical downturns versus TXN’s more defensive characteristics. Market sentiment reflects shared tailwinds from AI data centers but highlights trade-offs in growth potential versus stability.
Tickeron AI Verdict
Based on observable factors such as trend consistency, margin stability, and relative positioning, Tickeron’s AI would currently assign a probabilistic edge to TXN. Its larger scale, higher profitability, and dividend support provide a more resilient profile amid recent sector pullbacks, while maintaining exposure to key growth areas. ON offers attractive valuation and growth sensitivity but carries higher volatility. This assessment reflects current data patterns rather than forecasts.
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.
Disclaimers and LimitationsTo 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 Buy and TXN is a Buy.
ON | TXN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 53 Fair valued | 66 Overvalued | |
PROFIT vs RISK RATING 1..100 | 72 | 32 | |
SMR RATING 1..100 | 76 | 29 | |
PRICE GROWTH RATING 1..100 | 42 | 39 | |
P/E GROWTH RATING 1..100 | 34 | 20 | |
SEASONALITY SCORE 1..100 | 50 | 90 |
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 (53) in the Semiconductors industry is in the same range as TXN (66). This means that ON’s stock grew similarly to TXN’s over the last 12 months.
TXN's Profit vs Risk Rating (32) in the Semiconductors industry is somewhat better than the same rating for ON (72). This means that TXN’s stock grew somewhat faster than ON’s over the last 12 months.
TXN's SMR Rating (29) in the Semiconductors industry is somewhat better than the same rating for ON (76). This means that TXN’s stock grew somewhat faster than ON’s over the last 12 months.
TXN's Price Growth Rating (39) in the Semiconductors industry is in the same range as ON (42). This means that TXN’s stock grew similarly to ON’s over the last 12 months.
TXN's P/E Growth Rating (20) in the Semiconductors industry is in the same range as ON (34). This means that TXN’s stock grew similarly to ON’s over the last 12 months.
| ON | TXN | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 90% | N/A |
| Stochastic ODDS (%) | 3 days ago 75% | 3 days ago 65% |
| Momentum ODDS (%) | 3 days ago 83% | 3 days ago 59% |
| MACD ODDS (%) | 3 days ago 85% | 3 days ago 57% |
| TrendWeek ODDS (%) | 3 days ago 78% | 3 days ago 63% |
| TrendMonth ODDS (%) | 3 days ago 78% | 3 days ago 59% |
| Advances ODDS (%) | 5 days ago 75% | 5 days ago 60% |
| Declines ODDS (%) | 18 days ago 78% | 11 days ago 60% |
| BollingerBands ODDS (%) | 3 days ago 74% | 3 days ago 56% |
| Aroon ODDS (%) | 3 days ago 70% | 3 days ago 60% |
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 overvalued. 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 0 FA rating(s) are green while TXN’s FA Score has 3 green FA rating(s).
- ON’s FA Score: 0 green, 5 red.
- TXN’s FA Score: 3 green, 2 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 5 TA indicator(s) are bullish while TXN’s TA Score has 4 bullish TA indicator(s).
- ON’s TA Score: 5 bullish, 3 bearish.
- TXN’s TA Score: 4 bullish, 4 bearish.
Price Growth
ON (@Semiconductors) experienced а +10.32% price change this week, while TXN (@Semiconductors) price change was +4.29% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +6.43%. For the same industry, the average monthly price growth was +7.74%, and the average quarterly price growth was +64.87%.
Reported Earning Dates
ON is expected to report earnings on Nov 02, 2026.
TXN is expected to report earnings on Oct 27, 2026.
Industries' Descriptions
@Semiconductors (+6.43% 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.
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ON and
Correlation & Price change
A.I.dvisor indicates that over the last year, ON has been closely correlated with ADI. These tickers have moved in lockstep 78% of the time. This A.I.-generated data suggests there is a high statistical probability that if ON jumps, then ADI could also see price increases.