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ON Semiconductor (ON) Enhances Imaging With Hyperlux LP

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ON Semiconductor (ON - Free Report) recently introduced the Hyperlux LP image sensor family designed for industrial and commercial cameras, offering exceptional image quality, low power consumption, and compact form factors.

ON’s innovative technology caters to the surging demand for security cameras, enhancing image quality and battery life, making it ideal for applications ranging from smart doorbells to machine vision.

The sensors also incorporate features like Wake on Motion and Smart Region of Interest (ROI), enabling efficient power management and improved image capture, making them a significant advancement in imaging solutions for diverse applications.

Expanding Portfolio & Partner Base Aids Growth

ON shares have returned 52.7% year to date, outperforming the Zacks Computer and Technology sector’s growth of 37.5%. The outperformance can be attributed to its diverse portfolio offering in automotive and industrial end-markets.
 

 

ON is winning market share in the automotive segment with its silicon carbide dominance and intelligent power and sensing solutions.

ON’s dominant position in silicon carbide has been a major factor driving its strong partner base with automotive companies like BMW AG and Volkswagen, thereby driving growth.

BMW AG selected ON’s EliteSiC technology to support range extension for their next-generation electric vehicles. They collaborated to equip their future electric drivetrains with silicon carbide technology and increase efficiency and system-level performance.

Volkswagen also partnered with ON to use EliteSiC technology in its electric vehicles. Its EliteSiC 1200 V silicon carbide power module supports VW models' front and rear traction inverters.

Moreover, ON Semiconductor has recently inked over $3 billion worth of new Long-Term Supply Agreements (LTSAs) for silicon carbide.

ON Semiconductor and Magna have entered into a long-term supply agreement (LTSA) to incorporate ON Semiconductor's EliteSiC intelligent power solutions into Magna's eDrive systems, enhancing electric vehicle efficiency and performance.

Additionally, ON Semiconductor has extended its silicon carbide partnership with BorgWarner, integrating EliteSiC power devices into power modules set to enhance EV power density and efficiency, amounting to $1 billion in committed revenues.

However, persistent macroeconomic constraints, weakening demand and inventory corrections are expected to hurt ON in the near term.

For the third quarter of fiscal 2023, ON anticipates revenues between $2.095 billion and $2.195 billion. The Zacks Consensus Estimate for the current quarter is pegged at $2.15 billion, indicating a decline of 2.10% year over year.

The Zacks Consensus estimate for earnings has remained unchanged at $1.35 per share in the past 30 days, indicating a year-over-year fall of 6.90%.

Zacks Rank & Other Stocks to Consider

Currently, ON has Zacks Rank #2 (Buy).

Dell Technologies (DELL - Free Report) , NVIDIA (NVDA - Free Report) and Splunk are some other top-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

DELL, NVDA and SPLK shares have returned 74.9%, 221.1% and 71%, respectively, year-to-date.

Long-term earnings growth rates for Dell Technologies, NVIDIA and Splunk are pegged at 12%,13.5% and 29.55%, respectively.


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