Investors have bailed on On Semiconductor (ON) shares in recent sessions, but the options market remains convinced that the pullback will reverse after the company reports earnings on Nov. 2. Consensus is for ON to report $0.88 in earnings per share (EPS) for its third fiscal quarter, which would represent nearly 40% growth on a year-over-year basis.
Following the latest declines, On Semiconductor stock is trading at roughly half its YTD high in early June.
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www.barchart.comWhere Options Data Suggests ON Shares Are Headed
Options traders are increasingly betting on a post-earnings rally in On Semiconductor. The put-to-call ratio on contracts expiring Nov. 6 sits at 0.09x as of writing, indicating a very strong bullish skew. A reading below 1.00x is typically interpreted as constructive. According to Barchart, the upper price on those contracts is set at $77, signaling potential for a more than 9% rally in ON shares through the end of next week.
On the flip side, however, the technical setup heading into On Semiconductor’s earnings event remains unfavorable, as evidenced by Barchart’s “72% SELL” average opinion on the Nasdaq-listed firm.
What Could Drive Strength in On Semiconductor’s Q3 Earnings
The fundamental momentum backing On Semiconductor’s expected quarterly strength centers on its strategic dominance in high-growth megatrends.
Chief among these is robust demand in the automotive market, where accelerating electric vehicle (EV) adoption and advanced driver-assistance systems (ADAS) continue to boost chip content per vehicle.
ON’s leadership in silicon carbide (SiC) power solutions equips it with a distinct competitive moat, securing long-term supply agreements with leading EV manufacturers like Zeekr. Plus, structural tailwinds from industrial automation, green energy infrastructure, and fast-growing AI data center power management requirements provide durable revenue support, helping offset broader macroeconomic softness in consumer end-markets.
Wall Street Remains Bullish on On Semiconductor Stock
Heading into the earnings event, Wall Street firms are also convinced that the selloff in ON shares is overdone, and they’re poised for a comeback in the months ahead.
According to Barchart, the consensus rating on On Semiconductor sits at “Moderate Buy,” with the mean price target of nearly $100 signaling potential upside of more than 40% from here.
www.barchart.com On the date of publication, Wajeeh Khan did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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