On Semiconductor Reports Strong Q2 Results Amid Market Challenges

After releasing a better-than-expected second-quarter report, On Semiconductor, a chipmaker focused on power and sensing technologies for the automotive and industrial markets, saw an 11.5% increase in shares. Revenue and earnings both beat Wall Street`s estimates, with Onsemi exceeding the profit estimate and meeting its own guidance. The company used $590.9 million in cash running its operations during the quarter, compared to the year-ago period. Onsemi has been struggling to grow revenue due to the slowdown in its end markets, particularly automotive and industrial companies. Electric vehicle sales are in the early stages of rebounding, and overall auto sales are expected to pick up if the Federal Reserve starts cutting interest rates.