Broadcom and ON Semiconductor present contrasting semiconductor investment cases for 2026. Broadcom posted fiscal 2025 revenue of nearly $63.9 billion, up about 23.9%, with net income of roughly $23.1 billion and free cash flow of nearly $26.9 billion, driven by AI-related demand. ON Semiconductor saw revenue decline about 15.3% to nearly $6.0 billion, with net income of roughly $121.0 million and free cash flow of nearly $1.4 billion, as it remains heavily tied to the automotive sector. Broadcom trades at a forward P/E of 31.5x and a price-to-sales ratio of 27.2x, while ON Semiconductor trades at 29.4x forward P/E and 5.9x price-to-sales. The analysis concludes Broadcom is the stronger option for investors focused on current earnings and cash flow, while ON Semiconductor may appeal to those betting on a cyclical recovery.
Broadcom IncAI-related demand driving strong revenue growth of 23.9% to $63.9B
ON Semiconductor CorporationRevenue decline of 15.3% due to heavy reliance on weak automotive sector