ON Semiconductor (NASDAQ:ON) ranks seventh on a recently published list of 10 stocks projected for significant gains by 2027, with an average upside potential of 36 percent. The company has attracted substantial hedge fund attention, with 86 holders as of Q2 2026.
Jeff Brown, author of the Near Future Report, identifies ON Semiconductor as a top equity play for the emerging robotics wave, explicitly linking the stock's prospects to Tesla's Optimus robot program.
Brown's thesis centers on ON's specialized chips that control and power the motors required in a robot's arms, legs, and fingers. These components offer superior efficiency compared to standard alternatives, allowing Optimus robots to operate more smoothly, maintain cooler temperatures, and extend run times between charges. Brown also suggests ON could supply the sensors robots use for environmental perception and tactile feedback.
Morgan Stanley recently endorsed ON Semiconductor as a primary investment vehicle to capitalize on the robotics trend. Brown introduced ON as his top robotics pick in mid-2025 and has consistently reiterated the bullish stance, positioning it as a low-profile beneficiary of Elon Musk's major initiatives.
Tesla shares trade at $358.22, up 4.2 percent in recent trading.
