It’s time to revisit the investment case for ON Semiconductor (NASDAQ: ON).
The stock is up 114% year to date as I write, and many of the factors that made it a top stock to buy for 2026 remain in place today
However, valuations still matter, so is ON Semiconductor still a great stock for long-term investors? I think the answer is yes, and here’s why. The case for buying ON Semiconductor stock in 2026 The company’s silicon carbide (SiC) and gallium nitride (GaN) power and sensing chips make it a leading player in the electrification of the economy.
SiC and GaN possess properties that make them ideal for use in high-voltage and high-switching applications. Going into 2026, the case for buying the stock was based on the near-term catalyst of the company passing an inflection point in both its automotive (electric vehicles, or EVs) and industrial end markets (such as factory automation). In addition, the company has a small but rapidly growing exposure to data centers (revenue up 30% sequentially in the first quarter), not least through its partnership with Nvidia to create chips for a new high-voltage class of AI data centers.