Semiconductor Stocks Sizzle: Onsemi CEO Sparks 2025 Market Rally With Bold Recovery Outlook
Onsemi (ON) shares surge 11% as CEO predicts rebound in chip demand, fueled by recovery in industrial and EV sectors.
- +11%: Onsemi’s stock jump on Tuesday
- -$15 Billion: Approximate year-to-date market cap lost before surge
- 22%: Year-over-year revenue drop in Q1 2025
- Industrial Market: Second-largest sector for Onsemi
Onsemi (NASDAQ:ON) electrified Wall Street this week, soaring 11% in one day after CEO Hassan El-Khoury predicted a robust second-half recovery. The century-old chipmaker, known for its deep ties to electric vehicle (EV) manufacturers and industrial giants, now stands at the heart of semiconductors’ resurgence.
The dramatic share rally snapped months of weakness that had erased a quarter of Onsemi’s value in early 2025. Yet Tuesday marked a pivotal turnaround, as investors responded to a potent blend of optimism, improving fundamentals, and anticipation around global trade negotiations.
Industrial and EV Markets Power Recovery
El-Khoury highlighted signs of a rebound in Onsemi’s industrial division—the company’s second-largest business after automotive semiconductors. Analysts suggest that renewed infrastructure investment and automation trends are sparking fresh demand for Onsemi chips.
Meanwhile, auto chip demand—an area hit hard by recent slowdowns—is forecasted to bottom in Q2 2025 before climbing back, in part thanks to strong orders from China’s booming electric vehicle sector. This recovery aligns with broader global moves toward electrification and sustainability, as echoed by sector leaders like NVIDIA and Intel.
Q: Why Did Onsemi Shares Spike 11%?
Investors rushed to buy after El-Khoury projected brighter prospects in the second half of 2025, specifically calling out:
- Recovery signals in key industrial markets
- Expectations for auto demand to stabilize and rebound
- Onsemi’s strategic positioning in the Chinese EV supply chain
This optimism came despite Onsemi’s Q1 revenue falling 22% year-over-year, landing at $1.45 billion—a drop that previously sent investors fleeing.
How Can Investors Ride the 2025 Chip Rally?
1. Track Leading Indicators: Watch for accelerated orders in industrial and automotive markets, particularly from Asia.
2. Monitor Trade Developments: Ongoing negotiations between the U.S. and China could sharply impact chip demand and supply chains. Stay informed via sources like Reuters.
3. Diversify Exposure: Semiconductor ETFs and tech indices provide broader exposure and help manage risk. Top holdings often include Onsemi alongside majors like TSMC.
Q: Are Chip Stocks Set for a Prolonged Comeback in 2025?
With artificial intelligence, automation, and electrification surging worldwide, analysts anticipate a multi-year upcycle for chipmakers. Onsemi’s unique niche—supplying both industrial automation and next-gen vehicles—could set the stage for above-market growth if recovery trends hold.
Industry peers remain bullish. Advances in AI and renewable energy mean demand for advanced semiconductors should only intensify. Still, macroeconomic turbulence and shifting trade policies will keep volatility high.
What’s Next for Onsemi Investors?
Onsemi’s steep rebound returns the stock to prices last seen in March. While Q1 losses rattled shareholders, the CEO’s confidence and clear signs of recovery offer a bullish narrative.
Don’t miss out: As global chip demand reignites, Onsemi could be at the forefront of a semiconductor super-cycle.
Investor Quick Checklist:
- Follow quarterly Onsemi earnings for 2025 forward guidance
- Watch trends in EV and industrial automation demand
- Track semiconductor benchmark indices for broader sentiment
- Consider dollar-cost averaging to mitigate market swings
Stay tuned as the chip war heats up and new winners emerge in the race for tech supremacy.