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5:11 PM ยท 17 December 2024

ON Semiconductor gains 2.10% as it strengthens its cooperation with Denso ๐Ÿ””

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ON Semiconductor (ON.US) is up today by 2.10% to $68.13 per share following reports of strengthened cooperation with Denso Corp in the development of autonomous driving technology and advanced driver assistance systems (ADAS).

Existing Cooperation

The companies have been working together for over 10 years. Under this collaboration, ON Semiconductor supplies state-of-the-art automotive sensors based on advanced semiconductor technologies, enhancing overall vehicle intelligence, communication, and safety. Denso is the world’s second-largest supplier of automotive systems, making it a significant player in the market.

Strengthening the Partnership

As part of the deepened collaboration, Denso revealed plans to acquire shares of ON Semiconductor through open market transactions. The target number of shares has not yet been officially disclosed by the companies. Upon release of this information, ON Semiconductor's stock initially gained over 5% at the start of the trading session. However, the gains were slightly trimmed, and the stock is currently up 2.10%.


The company’s financial analysis indicates solid fundamentals. The stock is relatively undervalued compared to other semiconductor companies. Analysts remain optimistic about ON Semiconductor in the upcoming quarters. Bank of America named the company as the best pick for 2025, citing strong demand for semiconductors from the automotive and industrial sectors in the second half of the year, as well as growing investments in artificial intelligence and data center capabilities.

Chart Analysis (D1 Interval)

ON Semiconductor is gaining over 2% today and is rebounding from a key support zone. Looking at the daily interval chart, we can observe a flattening trend with share accumulation above $66 per share. If a breakout occurs from this channel, a significant move can be expected, regardless of direction.


Source: xStation 5

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