Yahoo Finance ON Semiconductor Sensors to Enhance Automotive Applications
ON Semiconductor ON recently announced that it will showcase complete integrated in-cabin monitoring system in collaboration with Ambarella AMBA and Eyeris, at AutoSens Conference, Belgium.
The system utilizes ON Semiconductor’s latest sensors, including three 2.3 MP (or megapixel) RGB-IR image sensors and one MP AR0144AT image sensor to monitor driver and passenger activity.
Monitoring applications demand advanced sensors to capture images across various lighting modes, ranging from pitch black to direct sunlight conditions. This is where ON Semiconductor’s automotive sensors come in handy.
The sensors are receptive to both IR (infrared) and RGB (red, blue and green) light and can take images in varied lighting conditions with NIR (Near-infrared) illumination.
The latest system also leverages CV2AQ video processing System-on-Chip (SoC) from Ambarella and AI software capabilities from Eyeris. Robust collaborations with software and processor companies are expected to reduce time-to-market of the latest in-cabin systems.
Evolving automotive industry is leading to robust demand for vision-enabled in-cabin applications. ON Semiconductor’s strength in in-cabin sensors favors adoption, which in turn is expected to bolster revenue growth in the days ahead.
Strengthening Automotive Portfolio Holds Promise
ON Semiconductor’s strength in automotive segment is a key catalyst. Notably, the company is focused on investing in growth areas such as ADAS and wireless charging in the automotive business to broaden its exposure. This is expected to further enhance its financial performance.
ON Semiconductor Revenue (Quarterly)
ON Semiconductor Corporation revenue-quarterly | ON Semiconductor Corporation Quote
The product launches in the automotive end market for next generation automobile designs and the existing product portfolio hold promise, given the long-term prospects.
Per MarketsandMarkets data, automotive sensors market is projected to hit $41.5 billion by 2025 from $26.3 billion valuation in 2018 at a CAGR of 7% between 2019 and 2025.
Wrapping Up
Strict movement rules, increasing electrification, and evolving demand for comfort and safety are fueling demand for automotive image sensors, parking sensor interface and power supply products, which favor prospects of ON Semiconductor’s automotive solutions over the longer haul.
However, weakness in majority of the company’s end-markets remains a headwind.
Further, Huawei related headwinds, soft demand from Greater China and Asia, uncertainty in macroeconomic environment, and stiff competition and high debt burden remain major concerns.
Zacks Rank and Stocks to Consider
Currently, ON Semiconductor carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the broader technology sector are Anixter International AXE and Perficient PRFT, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Anixter and Perficient is currently pegged at 8% and 10.75%, respectively.
5 Stocks Set to Double
Zacks experts released their picks to gain +100% or more in 2020. One is a famous cutting-edge food company that is “hiding in plain sight.” Swamped with competitors and ignored by Wall Street, its stock price floundered. Now, suddenly, it acquired a company that gives it an advantage none of its peers have.
Today, see all 5 stocks with extreme growth potential >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Perficient, Inc. (PRFT) : Free Stock Analysis Report
Ambarella, Inc. (AMBA) : Free Stock Analysis Report
Anixter International Inc. (AXE) : Free Stock Analysis Report
ON Semiconductor Corporation (ON) : Free Stock Analysis Report
To read this article on Zacks.com click here.
