I Picked ON Semiconductor as My Top Stock for 2026. It's Up 53%, but Is It Still a Great Value?
The Motley Fool
by newsfeedback@fool.com (Lee Samaha)February 22, 2026
AI-Generated Deep Dive Summary
ON Semiconductor (NASDAQ: ON) has seen its shares surge by 53% since being named the top stock pick for 2026. While past performance doesn’t guarantee future returns, the company’s strong focus on innovative technologies like silicon carbide (SiC) and gallium nitride (GaN) chips positions it as a key player in high-growth markets such as electric vehicles, renewable energy, and AI data centers. Despite its recent gains, ON Semiconductor remains an attractive investment due to its leadership in these emerging areas and recovery in key end markets.
The company’s power and sensing chips are driving demand in electrification and automation, while its SiC and GaN technologies are ideal for high-temperature and high-voltage applications. SiC chips are critical for EVs, renewable energy systems, and industrial motors, while GaN chips excel in AI data centers, aerospace, and defense due to their ability to handle high switching speeds efficiently.
ON Semiconductor’s strategic focus on SiC and GaN underscores its commitment to innovation and growth in rapidly expanding markets. The rise of electric vehicles and the increasing demand for sustainable energy solutions further bolster its position as a leader in these sectors. Additionally, the company’s strong financial performance and valuation make it an appealing choice for investors seeking exposure to cutting-edge technology trends.
For finance enthusiasts, ON Semiconductor’s story highlights the importance of identifying companies at the intersection of technological innovation and market opportunity. Its ability to leverage growth in electrification and AI-driven industries makes it a compelling investment despite its recent share appreciation. As end markets recover and demand for advanced semiconductor solutions continues to rise, ON Semiconductor is well-positioned to capitalize on these trends, offering both growth potential and long-term value.
Verticals
financeinvesting
Originally published on The Motley Fool on 2/22/2026