Broadcom has emerged as the stronger near-term performer with robust AI and data-center growth, generating nearly $63.9 billion（約10兆円） in FY 2025 revenue and a 36.2% net margin, while ON Semiconductor is in a cyclical downturn with FY 2025 revenue of nearly $6.0 billion（約9600億円） and a 2.0% net margin, but may appeal to investors betting on recovery in automotive and industrial sectors. The key trade-off is immediate earnings power versus cyclical upside, with Broadcom's premium valuation already pricing in AI strength and ON Semiconductor's lower Forward P/E offering potential recovery leverage.
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Broadcom reported FY 2025 revenue of nearly $63.9 billion（約10兆円）, up approximately 23.9% year-over-year, with net income of roughly $23.1 billion（約3.7兆円） and free cash flow of nearly $26.9 billion（約4.3兆円）. ON Semiconductor reported FY 2025 revenue of nearly $6.0 billion（約9600億円）, down approximately 15.3% versus the prior year, with net income of roughly $121.0 million（約190億円） and free cash flow of nearly $1.4 billion（約2200億円）.
Why it matters
Broadcom's strength in AI and data-center demand has driven substantial earnings power and a net margin of close to 36.2%, but its shares already trade at a premium (Forward P/E of 31.5x versus a sector benchmark of 36.4x). ON Semiconductor faces cyclical pressure from automotive and industrial markets—which account for about 51% of its revenue—but trades at a lower Forward P/E of 29.4x and may benefit from a market recovery.
What to watch
ON Semiconductor agreed in June 2026 to acquire Synaptics in an all-stock deal valued at about $7 billion（約1.1兆円）, aimed at expanding exposure to physical AI and AI-enabled devices. Broadcom's customer concentration—40% of revenue from its top five end customers—poses a risk if capital spending slows.
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