Cambiar SMID Fund’s Strategic Bet on ON Semiconductor Corporation (ON) Amid Demand Inflection Ahead

6 days ago 11

Soumya Eswaran

Thu, June 4, 2026 astatine 8:11 AM CDT 3 min read

Cambiar SMID Fund, managed by Cambiar Investors, published its Q1 2026 capitalist letter. A transcript of the missive is disposable to download here. The capitalist people (CAMMX) returned 2.21%, and the organization people (CAMUX) returned 2.27%, underperforming the Russell 2500 Value Index's 4.77%. This shortfall was chiefly owed to declines successful definite healthcare and concern positions and little vulnerability to the top-performing Energy sector. The broader US equity marketplace saw mixed results, with the S&P Index down 4.3% and the Russell 2000 up 0.9%. Economic headwinds included Mag 7 stocks’ precocious capex budgets, AI disruption fears, and redemption gates successful backstage credit, exacerbated by the struggle successful Iran, starring to a wide driblet successful banal prices. Notably, worth stocks outperformed maturation stocks successful the quarter, offering immoderate downside protection. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Cambiar SMID Fund highlighted stocks similar ON Semiconductor Corporation (NASDAQ:ON). ON Semiconductor Corporation (NASDAQ:ON) is an American semiconductor institution that provides intelligent sensing and powerfulness solutions to the automotive, industrial, aerospace and defense, medical, and connection industries. One-month instrumentality of ON Semiconductor Corporation (NASDAQ:ON) was 33.12%, and its shares gained 170.35% implicit the past 52 weeks. On June 3, 2026, ON Semiconductor Corporation (NASDAQ:ON) closed astatine $133.93 per stock with a marketplace capitalization of $52.07 billion.

Cambiar SMID Fund stated the pursuing regarding ON Semiconductor Corporation (NASDAQ:ON) successful its Q1 2026 capitalist letter:

"ON Semiconductor Corporation (NASDAQ:ON) is simply a institution we are precise acquainted with – having a palmy ownership acquisition successful the precocious 2018-mid 2022 timeframe. ON produces powerfulness semiconductors and is guided by what we presumption to beryllium a best-in-class absorption team. The institution is trading astatine trough margins owed to an extended COVID driven inventory cycle. Successful ownership successful semis is each astir timing the cycle, and we judge request trends are poised to inflect higher from existent levels. ON besides has an further catalyst via an upcoming datacenter architectural displacement that volition correspond a worldly summation successful powerfulness semi content. If we are close successful our assessment, net powerfulness for ON is acceptable to determination materially higher successful the coming years."

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