onsemi ON is strengthening its position in renewable energy infrastructure by leveraging its expertise in power semiconductors, silicon carbide (SiC) technology and energy-efficient power solutions. As global demand for renewable power generation, energy storage and grid modernization accelerates, the company is increasingly becoming a key technology supplier across these markets.
A major growth driver is onsemi’s expanding presence in energy storage systems (ESS). During the first quarter of 2026 earnings call, management highlighted renewed growth in its string ESS and microgrid businesses across North America and China. The company expects revenue from these markets to grow more than 40% year over year in 2026, significantly outpacing broader power semiconductor market growth. Its market share in this segment is also approaching 60%, reflecting strong customer adoption of its solutions.
onsemi’s competitive advantage stems from its differentiated EliteSiC technology and hybrid power modules that combine silicon carbide and IGBT technologies. These solutions help customers improve efficiency, increase power density and reduce energy losses in utility-scale solar inverters, battery energy storage systems and microgrid deployments. The company recently secured a design win with Sineng Electric, supplying power solutions for advanced liquid-cooled energy storage systems and solar inverters.
Another favorable trend is the growing “AI halo effect.” Rapid expansion of AI data centers is increasing electricity demand, prompting greater investment in energy storage, renewable generation and grid infrastructure. Management noted that rising energy costs and improving battery economics are making energy-storage projects increasingly attractive, creating additional opportunities for onsemi’s power portfolio.
With strong positions in solar, energy storage, microgrids and power management, onsemi appears well placed to benefit from the long-term expansion of renewable energy infrastructure worldwide.
How onsemi Compares With Key Renewable Energy Rivals
Among onsemi’s closest competitors in renewable energy infrastructure are Infineon Technologies IFNNY and STMicroelectronics STM, both of which have significant exposure to electric vehicles, industrial power systems, solar inverters and energy storage applications.
Infineon remains one of the strongest players in silicon carbide and power semiconductors. Infineon continues to expand its wide-bandgap portfolio to support renewable energy, EV charging and grid modernization projects. Infineon also benefits from a broad customer base across industrial automation and utility-scale energy infrastructure, making it a formidable rival in the fast-growing power electronics market.
STMicroelectronics is similarly investing heavily in silicon carbide technologies and energy-efficient power solutions. STMicroelectronics has established relationships with leading automotive and industrial customers while expanding its presence in solar, battery storage and power-conversion systems. As renewable energy deployment accelerates globally, STMicroelectronics is positioning itself to benefit from increasing demand for high-efficiency power management devices.
While Infineon and STMicroelectronics remain formidable competitors, onsemi has differentiated itself through strong momentum in energy storage systems, microgrids and utility-scale renewable applications. Its growing market share in energy infrastructure and expanding silicon carbide portfolio position onsemi in a favorable position within this rapidly evolving market.
ON’s Price Performance, Valuation & Estimates
Shares of onsemi surged 143.4% year to date (YTD) compared with the industry’s 74.1% rise.
ON’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, ON trades at a forward price-to-earnings (P/E) multiple of 36.31, a premium to the industry’s average of 36.
ON’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ON’s 2026 earnings per share has increased in the past 30 days, as shown below. The company is likely to report strong earnings, with projections indicating a 31.5% year-over-year rise in 2026 and 41.1% in 2027.
Image Source: Zacks Investment Research
onsemi currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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STMicroelectronics N.V. (STM): Free Stock Analysis Report
Infineon Technologies AG (IFNNY): Free Stock Analysis Report
ON Semiconductor Corporation (ON): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).