ON Semiconductor (ON.US) rose 2.10% today to $68.13 per share following news of strengthening its cooperation with Denso Corp in the development of autonomous driving technology and advanced systems driver assistance system (ADAS).
Existing cooperation
The two companies have worked together for over 10 years. Under this cooperation, ON Semiconductor provides cutting-edge automotive sensors based on advanced semiconductor technologies, improving overall vehicle intelligence, communication and safety. Denso is the world’s second largest supplier of automotive systems, making it a major player in the market.
Strengthening the partnership
As part of this enhanced collaboration, Denso announced its intention to acquire shares of ON Semiconductor through open market transactions. The targeted number of shares has not yet been officially disclosed by the two companies. Following the announcement, ON Semiconductor stock initially gained more than 5% early in the trading session. However, gains were pared slightly and the stock is currently up 2.10%.
Financial analysis of the company indicates strong fundamentals. The stock appears relatively undervalued compared to other companies in the semiconductor industry. Analysts remain optimistic about ON Semiconductor for the coming quarters. Bank of America named the company a top 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 capabilities data centers.
Graphical analysis (D1 interval)
ON Semiconductor gains over 2% today and rebounds from a key support area. Looking at the daily time frame chart, we can see a consolidation trend with stocks accumulating above $66 per share. If a breakout occurs in this channel, a significant movement can be expected, regardless of direction.
Source: xStation 5
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