This article talks about a company called ON Semiconductor that makes special parts for electronic devices. The price of its shares has gone down recently, but it is still doing well in the long run. People who own these shares for a long time might want to check how much money the company earns compared to the price they paid for the shares. This can help them decide if they should keep or sell their shares. Read from source...

- The title is misleading and sensationalist, implying that there is something unusual or problematic about ON Semiconductor Inc's price over earnings ratio, when in fact it is a normal and common aspect of stock analysis.

AI recommends that you invest in ON Semiconductor Inc. (ON) with a long-term horizon of at least one year, given its strong performance over the past year and its potential for growth in the semiconductor industry. The stock currently trades at a price-to-earnings ratio (P/E ratio) of 21.96, which is slightly above the industry average of 20.75, but still reasonable for a company with a stable and growing earnings base. The P/E ratio reflects the market's expectations of future earnings growth and indicates that ON has room to increase its earnings per share (EPS) in the coming years.

The main risks associated with investing in ON are:

- The cyclical nature of the semiconductor industry, which is sensitive to economic cycles, demand fluctuations, and technological changes. This means that ON's revenues and profits may vary significantly depending on the overall health of the global economy and the performance of its customers in various end markets, such as automotive, industrial, communications, computing, and consumer electronics.
- The competition from other semiconductor companies, especially from larger rivals like NXP Semiconductors NV (NASDAQ:NXPI), Texas Instruments Inc. (NASDAQ:TXN), and Analog Devices Inc. (NASDAQ:ADI), who may offer similar or superior products, services, or technologies at lower costs or higher quality. This could erode ON's market share, margins, and competitive advantage in certain segments or regions.
- The potential for disruptive innovations or new business models that could reduce the demand for traditional semiconductor solutions, such as the rise of artificial intelligence, Internet of Things, 5G, cloud computing, and edge computing. These emerging trends may require ON to invest more in research and development, acquisitions, or partnerships to stay relevant and adapt to the changing market dynamics.