ON Semiconductor: #PowerStocks Series Pick Of The Week (February 2026)

Do you remember what happened in April 2025? US President Donald Trump walked onto the stage with a large placard listing the reciprocal tariffs that would be applied to the list of countries.

Source: piie.com/blogs/realtime-economics/2025/piie-experts-react-trumps-tariffs-announced-april-2

The announcement of the tariffs shook investors' confidence, and the US stock market dived almost 5% that night. This dive continued for 2 more days, erasing more than 14% in just a few days. Leaders worldwide were shocked and responded by negotiating with President Donald Trump. Some countries retaliated, and the tariff war escalated. But the US Supreme Court has just ruled that President Donald Trump has exceeded his authority in implementing the reciprocal tariffs. Investors cheered at this ruling. After a month of cautious ranging behavior, optimism is returning to the stock market. Before I share my findings on this week's #PowerStocks pick, let's review last week's selection: Textron (TXT).

Review Of Last Week's Pick Of The Week

Textron (TXT) was last week's #PowerStocks pick. It's an aerospace and defense company that builds and sells aircraft and helicopters for commercial and military use. Despite its large market capitalization, its shares have been exploding higher continually. After rising by more than 19% in just weeks, I thought a pullback was here. Instead, Textron's share price continued to rise. Am I scrapping this trading plan? Nope! I'm still waiting for its share price to reverse and bounce off its support area. Do you remember where this support area is? Yes, it's around $95.50. This is also shared in my Telegram Channel. Speaking of Telegram, my team and I will never ask you for your hard-earned money for "investments". I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.

To protect you from scams, please note that my team and I WILL NEVER solicit for any investment. 

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Why Is Swing Trading ON Semiconductor (ON) Worth It?

Source: onsemi.com

ON Semiconductor provides intelligent power and sensing solutions, primarily focusing on automotive and industrials markets. It's an important participant in the smart manufacturing industry. This explains its huge market capitalization of more than $27b, ranking it in the top 50 most valuable electronics companies globally. Enjoying massive success is great. But are its shares explosive for short-term trades? Yes! Its share price is capable of bursting upwards repeatedly, between 5.9% and 31%, 29 times in just the past 11 months! After rising by 27.7% in less than 2 weeks, its share price is pulling back. This is great news because I would like to buy its shares and ride them higher. Where's a favorable price area to buy its shares at? Continue reading to get the details. P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs ON Semiconductor (ON)

What is the 1st thing I'd want to know from this analysis? I want to identify the trend of ON Semiconductor's share price. Why? Knowing the trend of its shares allows me to determine whether I'd look for a buying or shorting opportunity because following its price trend will sharply increase my chances of profitability. Given the mighty uptrend in ON Semiconductor's share price, I'd like to identify a buying opportunity. Great! But that's not all. I'll compare the performance of the S&P 500 (black) against ON Semiconductor's shares (blue). A stronger performer is more likely to continue bringing a higher return; therefore, buying the stronger performer is more likely to make my hard-earned money work harder. While the S&P 500 had climbed 4.6% in the past 3 months, the shares of ON Semiconductor shot up by almost 48% in the same time period! That's a mighty outperformance by ON Semiconductor by over 10x! I want to buy its shares for an explosive swing trade. But is this all to analyze?

How Explosive Is ON Semiconductor (ON)?

No, there's still more to analyze to boost my chances of success. Because I only wish to ride its next powerful upmove instead of hanging on to its shares, my holding period will be as short as a few days. Hence, I want its shares to have the ability to explode upwards fast. Have the shares of ON Semiconductor been exploding upwards consistently? Marking out the explosive upmoves for the past 11 months has left me stunned. There are 29 explosive upmoves, and each of them measures between 5.9% and 31%! What's even more impressive? The share movement of such huge companies is usually more subdued, but not ON Semiconductor's. Additionally, I appreciate that ON Semiconductor enjoys an enormous market capitalization, as this provides an extra layer of security against manipulation. I don't wish to lose my hard-earned money to manipulation that could be easily prevented! Here comes the golden question: Is it time to buy the shares of ON Semiconductor for an explosive swing trade?

Key Price Levels

As with many things in life, timing is key. Trading is no exception. Buying an explosive stock at the wrong time can result in significant losses and emotional distress. This will cause you to lose confidence, and you'll doubt yourself even when a fantastic trading opportunity arises straight from under your nose! Is it time to buy the shares of ON Semiconductor for an explosive swing trade? You can have this insight by uncovering its key price levels (also known as support and resistance zones). And that's what I've done in the chart above. I've marked out a strong support area around $68 which I want its shares to pull back to and bounce. Do you see what I see? The shares of ON Semiconductor have pulled back to its support area and bounced! Hence, I want its shares to catch its next explosive upmove. Here's a pro tip: Instead of staring at your screen, consider setting a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones.

Which Instrument Should You Consider Using?

  Do you ever wonder about the instrument used to trade explosive stocks? With 3 main trading instruments available - stocks, contract-for-difference (CFD), and options, you wonder which suits you best. Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options. Here are the main similarities and differences: CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1. However, due to its unique pricing mechanism, your options price doesn't rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop! Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge. Because there's a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons. Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital. While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts. You must be thinking, "What's the beauty of trading options?" Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.

And options don't have to be all about Math and dry!

It can be made easy to understand through real-life analogies.

In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort. Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process. Are you a CFD or options trader? I'm glad to be fluent in both. Finally, this is for educational purposes. Please perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

Claim Your Free (Limited Time) Stock Course Right Now:

The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!