Why Shares in ON Semiconductor Have Soared 52% So Far in 2023
Shares of intelligent sensing and power solutions company ON Semiconductor (NASDAQ: ON) soared 51.6% in the first six months of 2023. It's a stunning performance that significantly outperformed the S 500's 15.9% rise over the same time frame. The move comes down to the stock climbing a wall of worry over technology stocks, specifically the semiconductor sector.
Going into the year, it was no secret that consumer discretionary spending was slowing. A combination of rising interest rates crimps consumers' ability and willingness to spend on items such as consumer electronics and smartphones.
At the same time, there's a natural correction in spending on consumer goods occurring after lockdowns and stay-at-home measures in previous years pulled forward spending on goods in the home. It all added up to create an uncertain environment for companies selling technology into the sector.
Source Fool.com