This Nvidia Partner Was My Top Pick for 2026, and It’s Up 43%: Here’s Why It’s Still a Great Value Now | The Motley Fool

This Nvidia Partner Was My Top Pick for 2026, and It’s Up 43%: Here’s Why It’s Still a Great Value Now | The Motley Fool

By Lee Samaha
Publication Date: 2026-10-11 11:15:00

ON Semiconductor (ON -2.37%) was a great value going into 2026, and despite the 43% rise in 2026, it’s arguably still one now. The investment case for the stock rests on the idea that its current core exposure to electric vehicles (EVs) and industrial applications implies ongoing growth.

Meanwhile, it has a fast-growing exposure to AI data center infrastructure, including a key partnership with Nvidia (NVDA -0.52%). Equally important, long-term growth comes from its exposure to physical AI.

ON Semiconductor is an AI stock now

The company is best known for its power and sensing chips, which are primarily sold into the automotive market (mainly electric vehicles) and to a wide range of industrial customers (EV infrastructure, industrial automation, motor control, robotics, etc.). Its power solutions enable lightweight, long-range EVs, and its sensing technology is used in advanced driver assistance systems (ADAS).

Today’s Change

(-2.37%) $-1.88

Current Price

$77.53

Its “other” end market is what management lumps in everything else. Usually, “other” would be something of an afterthought. Still, its fast-growing data center business is included, and it is largely responsible for the fast-growing…