ON Semiconductor Stock: The After-Earnings Rally Looks Like An Overreaction (NASDAQ:ON)

JHVEPhoto/iStock Editorial via Getty Images Investment thesis The last time I covered ON Semiconductor (NASDAQ:ON), I was cautious with a “Hold” rating, but that did not age well. The stock outperformed the broader U.S. market by a notable margin since November 1, when the previous thesis went live. Yesterday’s release of Onsemi’s Q4 earnings was met with enthusiasm in the market, resulting in significant movement in the stock price post-earnings. While I recognize the company’s robust long-term prospects, my analysis indicates a clouded near-term outlook. Yesterday’s surge in the stock price appears emotionally driven, and sustaining such a rally without…