ON Semiconductor Stock Tanks After an EV Slowdown Looks Possible -- Will It Charge Up Again Soon?
Shares of ON Semiconductor (NASDAQ: ON) have been clobbered in recent months as worries about the state of the electric vehicle (EV) market have mounted. Tesla sales are under pressure, some legacy automakers have been pulling back on rollouts of their new EV models in favor of (currently) more profitable internal combustion models, and high interest rates have proven to be a formidable barrier to financing a new EV for many consumers.
ON Semiconductor (or, onsemi, as the company has branded itself) just proved the worry is real, and the stock is now down by more than 40% from the all-time high it reached just a couple of months ago. Is it time to buy the dip before the stock charges up again?
First, let's acknowledge the solid results onsemi just delivered for the third quarter. Revenue came in at $2.18 billion, which was near the high end of its guidance range, in spite of management selling off or exiting underperforming business lines in the last couple of years. Profit margins also remained high as the chip designer and manufacturer began to come out of a phase of spending on chip fab expansion. Construction of its expanded silicon carbide (SiC) project in South Korea recently wrapped up -- it's now the largest such fab in the world.
Source Fool.com
