ON Semiconductor Corporation (NASDAQ:ON) shares are trading higher after the company signed a multi-year agreement with Volkswagen Group (OTC:VLKAF) (OTC:VWAGY) to provide solutions for vehicle lineup across multiple brands.

As per the deal, ON Semiconductor will supply a comprehensive power box solution for Volkswagen's next-generation traction inverter within its Scalable Systems Platform (SSP).

onsemi's EliteSiC M3e MOSFET-based power box offers higher power and efficiency in a compact design, enhancing heat management and extending EV range. Volkswagen Group can seamlessly adopt future EliteSiC platforms, staying at the forefront of EV innovation.

Volkswagen Group will benefit from onsemi's investment in a new silicon carbide plant in the Czech Republic, which will streamline the supply chain and logistics for traction inverter systems, enhancing manufacturing efficiency.

Till von Bothmer, Senior Vice President VW Group Procurement for Powertrain, said, "On top of the verticalization, onsemi has furthermore provided a resilient supply concept with regional silicon carbide fabs across Asia, Europe and the U.S. In addition, onsemi will continuously provide the latest SiC generation to ensure competitiveness."

Earlier this month, ON Semiconductor announced it had completed the acquisition of SWIR Vision Systems.

In June, On Semiconductor announced a restructuring plan that included reducing its workforce by 1,000 employees and consolidating nine sites to optimize its manufacturing network and consolidate its global corporate footprint.

Investors can gain exposure to ON stock via First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:QCLN) and Return Stacked Bonds & Managed Futures ETF Veridien Climate Action ETF (NYSE:CLIA).

ON Stock Prediction 2024

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of ON Semiconductor have an average 1-year price target of $86.53, representing an expected upside of 19.3%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. 1 analysts have bearish recommendations on ON Semiconductor, while 14 analysts have bullish ratings. The street high price target from B. Riley Securities is $103.0, while the street low from Morgan Stanley is $65.0.

Price Action: ON shares are up 3.06% at $74.75 premarket at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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