ON Semiconductor ON recently announced that its Wi-Fi chipset has been adopted by Europe-based broadband service provider, Orange France.
To be precise, high-performance Wi-Fi chipset from ON Semiconductor’s Quantenna Connectivity Solutions division has been implemented in latest gateway from Orange France — Livebox 5.
The chipset offers around 2 Gbps performance enabling Orange France to deliver an engaging Wi-Fi experience to users.
Moreover, ON Semiconductor’s robust Wi-Fi chipset helped Orange France to design Livebox 5 in a compact design utilizing recycled plastics to reduce carbon footprint by approximately 30% over the prior version.
Notably, Wi-Fi chipset from ON Semiconductor is also being leveraged Orange France in “Décodeur TV UHD,” in order to provide enhanced TV services.
ON Semiconductor is benefiting from expanding clientele via synergies from Quantenna Communications acquisition concluded in June, this year. The buyout is enabling it in strengthening its connectivity portfolio with high performance Wi-Fi solutions.
Growing Clout of Wi-Fi Connectivity Solutions Bodes Well
Rapid proliferation of IoT, increasing popularity of smart connected devices and growing adoption of cloud computing are fueling demand for an efficient network support infrastructure.
ON Semiconductor’s efforts to roll out robust chips to enhance performance of the latest connected devices compliant with latest wireless standards bode well in the long haul.
Notably, Quantenna division’s chipsets have been selected by Icotera to enhance its Wi-Fi 6 enabled product portfolio comprising gateways, routers, and access points.
Increasing adoption of ON Semiconductor’s offerings is expected to benefit its top line in the days ahead.
ON Semiconductor Corporation Revenue (Quarterly)
ON Semiconductor Corporation revenue-quarterly | ON Semiconductor Corporation Quote
Moreover, rising usage of smartphones, increasing rollout of public Wi-Fi networks by governments and rapid development of Wi-Fi 6 compliant devices are boosting the utilization of robust Wi-Fi chipsets.
Per ResearchAndMarkets data, global Wi-Fi chipset market is expected to hit $ 21.4 billion by 2024 from $17.2 billion valuation in 2018, at a CAGR of 3.7% between 2019 and 2024. This reinforces ON Semiconductor’s business prospects in the domain.
Accelerated deployment of 5G is expected to bolster demand for the company’s latest high-performance Wi-Fi chipsets, which enable complex connectivity applications.
Although ON Semiconductor’s innovative product launches enhance long-term growth prospects, weakness in majority of the company’s end-markets remains a headwind.
Moreover, Huawei related headwinds, soft demand from Greater China and Asia, uncertainty in macroeconomic environment, stiff competition and high debt burden remain major concerns.
Further, stiff competition from peers like Broadcom and Skyworks in the Wi-Fi chipset market, add to woes.
Zacks Rank & Stocks to Consider
Currently, ON Semiconductor carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are Alteryx AYX, Synopsys SNPS and Keysight Technologies KEYS, 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 Alteryx, Synopsys and Keysight is currently pegged at 17.62%, 12% and 10%, respectively.
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