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ON vs TXN
Which Stock Would AI Choose? ON Semiconductor (ON) vs. Texas Instruments (TXN) Stock Comparison
Key Takeaways
- ON Semiconductor (ON) focuses on power management and sensing solutions, with upcoming Q2 2026 earnings expected to show revenue growth of approximately 36% year-over-year (YoY).
- Texas Instruments (TXN) delivered strong Q2 2026 results with revenue of $5.46 billion, up 23% YoY, and earnings per share (EPS) of $2.14, supported by industrial and data center demand.
- Both companies operate in the semiconductor sector, benefiting from AI infrastructure and electrification trends, though TXN offers broader diversification across analog chips.
- Recent market activity shows ON trading near $81.61 after declines from 2026 highs above $130, while TXN has posted solid year-to-date gains amid positive earnings momentum.
- Relative performance highlights trade-offs between ON’s higher-growth niche segments and TXN’s consistent cash generation and margin stability.
- Sector sentiment remains constructive due to AI-driven power and industrial demand, influencing both stocks’ positioning.
Introduction
This comparison examines ON Semiconductor (ON) and Texas Instruments (TXN), two established players in the semiconductor industry. Both companies supply components critical to automotive, industrial, and emerging AI applications, making them relevant for investors tracking cyclical recovery and technology adoption. Traders and portfolio managers seeking to understand relative momentum, business model differences, and sector exposure may find this analysis useful for evaluating positioning within the broader semiconductor space.
ON Overview and Recent Performance
ON Semiconductor (ON), commonly known as onsemi, specializes in intelligent power and sensing technologies, including silicon carbide (SiC) solutions for electric vehicles and industrial applications. In recent weeks, the stock has traded around $81.61 following a pullback from mid-2026 peaks near $134, amid broader sector volatility and pre-earnings caution. Q1 2026 results demonstrated recovery with revenue of $1.513 billion and non-GAAP EPS of $0.64, exceeding expectations as demand strengthened beyond the cyclical trough. Upcoming Q2 2026 earnings, scheduled for August 3, 2026, carry analyst expectations for revenue of about $1.59 billion and EPS near $0.72, reflecting approximately 36% YoY growth. Sentiment has been influenced by expansion strategies in high-growth areas alongside near-term pressures on valuation multiples.
TXN Overview and Recent Performance
Texas Instruments (TXN) is a leading provider of analog and embedded processing chips, serving industrial, automotive, and communications markets with a focus on power management solutions. Recent market activity has been positive, with the company reporting robust Q2 2026 results including revenue of $5.46 billion (up 23% YoY) and diluted EPS of $2.14. Q1 2026 revenue reached $4.83 billion with EPS of $1.68, driven by sequential growth in industrial and data center segments. The stock has shown resilience with notable year-to-date advances, supported by consistent free cash flow generation and analyst upgrades. Broader sentiment reflects optimism around analog chip demand for AI infrastructure, contributing to steady relative performance amid sector expansion.
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Head-to-Head Comparison
ON Semiconductor (ON) and Texas Instruments (TXN) differ in scale and focus within the semiconductor sector. ON emphasizes specialized power and sensing technologies with exposure to high-growth niches like SiC for electrification and AI-related applications, potentially offering greater upside in targeted markets but with higher volatility tied to expansion cycles. TXN maintains a diversified portfolio centered on analog semiconductors, delivering broader industrial and data center coverage alongside superior margin stability and cash flow consistency. Recent momentum favors TXN following earnings beats and raises, while ON navigates pre-earnings positioning. Risk factors include cyclical semiconductor demand for both, though TXN’s scale may provide relative resilience. Market sentiment remains constructive for the sector overall, with trade-offs centering on growth concentration versus established profitability profiles.
Tickeron AI Verdict
Based on observable factors such as earnings consistency, margin trends, and positioning within AI-driven demand, Tickeron’s AI models currently assign a probabilistic edge to Texas Instruments (TXN). Its demonstrated ability to deliver beat-and-raise quarters and maintain diversified revenue streams aligns with more stable trend characteristics relative to ON Semiconductor (ON)’s near-term earnings catalyst focus. This assessment reflects current data patterns rather than definitive outcomes.
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 Buy and TXN 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 0 FA rating(s) are green whileTXN’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 3 bullish TA indicator(s).
- ON’s TA Score: 5 bullish, 2 bearish.
- TXN’s TA Score: 3 bullish, 5 bearish.
Price Growth
ON (@Semiconductors) experienced а +4.12% price change this week, while TXN (@Semiconductors) price change was -1.79% for the same time period.
The average weekly price growth across all stocks in the @Semiconductors industry was +1.82%. For the same industry, the average monthly price growth was -4.27%, and the average quarterly price growth was +45.24%.
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 (+1.82% 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 | TXN | ON / TXN | |
| Capitalization | 31.8B | 250B | 13% |
| EBITDA | 1.52B | 9.68B | 16% |
| Gain YTD | 50.619 | 60.257 | 84% |
| P/E Ratio | 53.31 | 41.55 | 128% |
| Revenue | 6.06B | 19.5B | 31% |
| Total Cash | 2.4B | 7B | 34% |
| Total Debt | 3.01B | 14.1B | 21% |
ON | TXN | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 9 | 55 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 56 Fair valued | 63 Fair valued | |
PROFIT vs RISK RATING 1..100 | 65 | 32 | |
SMR RATING 1..100 | 80 | 28 | |
PRICE GROWTH RATING 1..100 | 55 | 50 | |
P/E GROWTH RATING 1..100 | 40 | 30 | |
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 (56) in the Semiconductors industry is in the same range as TXN (63). 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 (65). This means that TXN’s stock grew somewhat faster than ON’s over the last 12 months.
TXN's SMR Rating (28) in the Semiconductors industry is somewhat better than the same rating for ON (80). This means that TXN’s stock grew somewhat faster than ON’s over the last 12 months.
TXN's Price Growth Rating (50) in the Semiconductors industry is in the same range as ON (55). This means that TXN’s stock grew similarly to ON’s over the last 12 months.
TXN's P/E Growth Rating (30) in the Semiconductors industry is in the same range as ON (40). This means that TXN’s stock grew similarly to ON’s over the last 12 months.
| ON | TXN | |
|---|---|---|
| RSI ODDS (%) | N/A | N/A |
| Stochastic ODDS (%) | 1 day ago 83% | 1 day ago 62% |
| Momentum ODDS (%) | 1 day ago 77% | 1 day ago 74% |
| MACD ODDS (%) | 1 day ago 78% | 1 day ago 69% |
| TrendWeek ODDS (%) | 1 day ago 78% | 1 day ago 62% |
| TrendMonth ODDS (%) | 1 day ago 75% | 1 day ago 59% |
| Advances ODDS (%) | 3 days ago 75% | 8 days ago 60% |
| Declines ODDS (%) | 12 days ago 76% | 1 day ago 58% |
| BollingerBands ODDS (%) | 1 day ago 82% | N/A |
| Aroon ODDS (%) | 1 day ago 68% | 1 day ago 63% |
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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 77% 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.
TXN and
Correlation & Price change
A.I.dvisor indicates that over the last year, TXN has been closely correlated with MCHP. These tickers have moved in lockstep 81% of the time. This A.I.-generated data suggests there is a high statistical probability that if TXN jumps, then MCHP could also see price increases.
| Ticker / NAME | Correlation To TXN | 1D Price Change % | ||
|---|---|---|---|---|
| TXN | 100% | -1.14% | ||
| MCHP - TXN | 81% Closely correlated | -2.20% | ||
| MCHPP - TXN | 80% Closely correlated | -1.88% | ||
| ADI - TXN | 80% Closely correlated | -0.85% | ||
| ON - TXN | 72% Closely correlated | -2.11% | ||
| NXPI - TXN | 71% Closely correlated | -0.64% | ||
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