Is Onsemi Stock a Buy After a YTD Decline of 40%?

Semiconductor company On Semiconductor (ON), referred to commonly as onsemi, has had a challenging start to 2025. The stock is down roughly 40% year-to-date, reflecting waning demand across its end markets and growing concerns over margin pressures. Despite beating Wall Street’s expectations in the first quarter, its revenue continues to decline, underlining the headwinds the semiconductor maker is facing. Moreover, its margins are under pressure, taking a toll on its bottom line.

For the first quarter, onsemi posted revenue of $1.45 billion, down 22% compared to the same period last year. Automotive and industrial markets, which together contribute roughly 80% of total revenue, were once again weak. Automotive revenue dropped 26% sequentially, though consistent with management’s guidance. Industrial revenue held up slightly better, down just 4%, with some encouraging signs of stabilization emerging in traditional sectors like medical and aerospace. Meanwhile, AI data center revenue has more than doubled year-over-year, highlighting pockets of growth within an otherwise soft demand environment.