Auto Chip Stocks: 60% Gains & Future Potential
- After a challenging period, several semiconductor stocks heavily invested in the automotive sector are experiencing a resurgence.
- Despite this positive movement, these stocks remain below their 52-week and all-time highs, suggesting potential for further growth in the semiconductor industry.Here's a closer look at three companies...
- Onsemi (ON): After hitting a low of around $32 in early April,Onsemi's stock has surged to nearly $54 as of June 16,a roughly 69% increase.
Auto chip stocks are experiencing a notable recovery in 2025, with many names in teh semiconductor industry showing ample gains. Several auto-focused companies have seen their stock values jump over 60% since early 2025,indicating a strong rebound from previous lows. Onsemi anticipates a bottoming out of automotive chip demand,signaling potential for further growth. Indie Semiconductor shows promise, while STMicroelectronics highlights increasing demand signals. News Directory 3 examines these trends, delivering insights into the market dynamics and expert analysis. Despite past challenges, opportunities emerge for investors. Discover what’s next for auto chip stocks and the future of the automotive market.
Auto Chip Stocks Show Signs of Recovery in 2025
After a challenging period, several semiconductor stocks heavily invested in the automotive sector are experiencing a resurgence. These companies are rebounding significantly from their lows earlier in 2025,with some stocks up more than 60% since April.
Despite this positive movement, these stocks remain below their 52-week and all-time highs, suggesting potential for further growth in the semiconductor industry.Here’s a closer look at three companies leading this charge:
Onsemi (ON): After hitting a low of around $32 in early April,Onsemi’s stock has surged to nearly $54 as of June 16,a roughly 69% increase. While the stock is still about 32% below its 52-week high of almost $79 (reached in July 2024) and 50% below its all-time high of $108 (August 2023), the company anticipates a turnaround.
At the Bank of America global Technology conference on June 3,Chief Executive Officer Hassane El-Khoury said onsemi expects automotive chip demand to bottom out in the second quarter of 2025. El-Khoury noted growing electric vehicle production and shipments, along with early recovery signs in the industrial market. onsemi projects stronger demand in the second half of the year, fueling an 11% stock increase on June 3 and another 6% the following day.
indie Semiconductor (INDI): Indie Semiconductor’s stock is trading at $3.41 as of June 16, up about 113% from its April low of $1.60. However, it remains 54% below its 52-week high of $7.42 (July 2024). Despite a nearly 48% drop in the last three years from its 2021 peak of over $15, analysts are optimistic.
While the company cautioned in May that tariffs could increase vehicle prices and dampen demand, MarketBeat reports that analyst price targets average $6, implying a potential 76% upside from the June 16 closing price.
STMicroelectronics (STM): STMicroelectronics’ stock is trading near $30, a 67% rebound from its April low. It remains about 28% below its 52-week high and 45% below its all-time peak. The company’s revenue fell more than 27% year-over-year in late April.
Though, at the BNP Paribas Exane conference on june 3, STMicroelectronics indicated that the first quarter woudl likely be its revenue low point. The company’s book-to-bill ratio in the automotive and industrial sectors moved “above parity” in the first quarter, meaning orders exceeded fulfillment capacity, signaling growing demand. This is a significant shift from the fourth quarter of 2024, when the ratio was below parity.
What’s next
The automotive semiconductor market shows promising signs of recovery. While these stocks have already seen considerable gains, analyst price targets and their