ON Semiconductor Corporation

“Onsemi rode a SiC demand supercycle to peak margins in 2022-2023, but two years of gross margin collapse from 49% to 33%, near-zero ROIC following a $3B capex cycle, and accelerating Chinese SiC competition reveal a business whose competitive advantages are narrowing in real time — while the stock, near 52-week highs at 17x FY2027 consensus estimates, prices in a full recovery that has not yet begun and may not fully materialize given structural pricing pressure from low-cost Chinese producers.”