Heartland Mid Cap Value Fund Sees Upside for ON Semiconductor on Rising Power Demand

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Heartland Mid Cap Value Fund highlighted ON Semiconductor Corporation as a beneficiary of rising power demand in its second-quarter 2026 investor letter. The fund noted that ON Semiconductor is a leader in silicon carbide semiconductors used in electric vehicles, renewable energy inverters, and high-power industrial equipment, and that the company has gained market share with leading global EV manufacturers. In AI datacenters, increasing power voltage requirements are driving adoption of ON's next-generation power management solutions, though datacenter-related revenue is expected to remain a materially smaller percentage of sales compared to its core automotive and industrial markets. After the stock more than doubled in price by early June and reached the fund's price target, Heartland reduced its weighting but intends to maintain a reasonably sized position, acknowledging that multiple drivers have come together simultaneously, creating potential for an intrinsic value scenario.

Impact on stocks 1

Semiconductors▲ · 1 stocks
ON Semiconductor Corporation
ON
▲ PositiveDemandrelevance

Rising power demand in EVs, renewables, and AI datacenters drives adoption of ON's silicon carbide and power management solutions.

Theme Impact 6

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