ON Semiconductor Jumps 11%, Breaks Resistance
$ON Semiconductor(ON)$ Surges +11.01%: Chip Giant Breaks Key Resistance, $60 Target Zone Activated
Latest Close Data
ON closed at $57.15 on December 4th, 2025 (ET), surging +11.01% (+$5.67) with impressive volume of 13.59M shares.
The stock is now 19.0% below its 52-week high of $70.58 but has rocketed 84.1% from its 52-week low of $31.04.
Core Market Drivers
Semiconductor sector momentum continues as AI infrastructure demand drives chip allocation.
ON's automotive and industrial semiconductor positioning benefits from EV recovery signals and infrastructure spending.
Strong institutional accumulation visible with $214M net inflows and elevated short covering activity (30.21% short ratio declining).
On December 3, Innoscience (02577) announced that it has reached a strategic cooperation agreement with ON Semiconductor to jointly accelerate the construction of the gallium nitride industry ecosystem.
Technical Analysis
Volume surged 85% above average (1.85 ratio) signaling institutional participation.
MACD turned bullish with DIF crossing into positive territory at 0.654, while DEA recovered to -0.331.
RSI(6) hit overbought at 90.55, RSI(12) at 75.43 shows strong momentum but approaching resistance.
KDJ signals continued upside with K=86.85, D=73.12.
Key Price Levels
Primary Support: $50.12 (December 2nd low)
Strong Resistance: $60.00 (psychological level and analyst cluster)
Immediate Pivot: $55.50 (intraday consolidation zone)
Valuation Perspective
Trading at P/E TTM of 75.71x versus Forward P/E of 22.11x, indicating strong earnings growth expectations.
P/S ratio of 3.72x remains reasonable for semiconductor sector. Current Forward P/E above historical average of 17.94x but within +1 std dev range.
Analyst Targets
30 analysts coverage with average target of $58.78 (range $40-$80). Ratings: 1 Strong Buy, 15 Buy, 19 Hold, 1 Underperform.
Current price already approaching consensus target, suggesting potential upward revision cycle.
Weekly Outlook
Expect consolidation between $54-$60 as RSI cools from overbought levels. Break above $60 targets $65-$67 zone.
Volume confirmation needed above 15M for sustained breakout. Watch for semiconductor sector rotation and Q4 earnings guidance updates.
Risk Disclaimer
This analysis is for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results.
Please conduct your own research and consult with financial advisors before making investment decisions.
For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here.
Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP.
Other helpful links:
💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉
How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
