“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
ON Semiconductor Corp stock has delivered a strong five-year return from mid-2021 through late July 2026. A $10,000 investment in shares of ON Semiconductor Corp (NASD: ON) on 07/30/2021 would have grown to $20,192.40 as of 07/29/2026, based on the price performance shown below. That represents a total return of 101.89% and an annualized return of 15.09%.
The result is notable because it came without any contribution from dividend reinvestment. ON Semiconductor does not pay a regular dividend, so the full gain in this period came from share price appreciation. For investors evaluating semiconductor stocks, this is an important distinction: returns were driven by capital gains rather than income.
ON Semiconductor 5-Year Return at a Glance
| Start date: | 07/30/2021 |
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| End date: | 07/29/2026 | ||||
| Start price/share: | $39.06 | ||||
| End price/share: | $78.86 | ||||
| Starting shares: | 256.02 | ||||
| Ending shares: | 256.02 | ||||
| Dividends reinvested/share: | $0.00 | ||||
| Total return: | 101.89% | ||||
| Average annual return: | 15.09% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $20,192.40 | ||||
What Drove the Return?
The mechanics of the return are straightforward. The share price rose from $39.06 to $78.86 over the period, nearly doubling the value of the original position. Because the share count remained unchanged at 256.02, the ending value reflects price appreciation alone.
In practical terms:
- $10,000 invested at $39.06 per share bought approximately 256.02 shares.
- At an end price of $78.86, those shares were worth $20,192.40.
- No dividends were paid or reinvested, so total return equaled price return.
This kind of outcome highlights a core feature of many semiconductor investments: returns can be highly sensitive to changes in earnings expectations, end-market demand, margins, and valuation multiples. In a cyclical industry, a favorable period can produce outsized gains, but those gains often arrive with above-average volatility.
Why ON Semiconductor Matters in the Chip Sector
ON Semiconductor, now commonly branded as onsemi, is known for its exposure to power management, intelligent sensing, and automotive and industrial semiconductor markets. Those segments have attracted sustained investor attention in recent years because they are tied to long-duration themes such as vehicle electrification, advanced driver-assistance systems, energy infrastructure, and factory automation.
That context helps explain why a five-year holding period can matter more than short-term trading swings. Semiconductor stocks are often re-rated not only on current results but also on expectations for future content growth in vehicles, efficiency applications, and industrial systems. When those expectations improve, equity performance can be powerful. When the cycle weakens, the same stocks can retrace sharply.
Key Takeaways From This 5-Year ON Investment
A concise summary of the five-year ON Semiconductor investment result:
- Initial investment: $10,000 on 07/30/2021
- Ending value: $20,192.40 on 07/29/2026
- Total return: 101.89%
- Annualized return: 15.09%
- Dividend contribution: none
The broader lesson is that long-term stock returns are ultimately determined by business performance and the price paid at entry, not by the day-to-day noise between those two points. In ON Semiconductor’s case, the five-year period rewarded patience with a return that more than doubled the original capital.
The figures above were computed with the Dividend Channel DRIP Returns Calculator.
“While it might seem that anyone can be a value investor, the essential characteristics of this type of investor-patience, discipline, and risk aversion-may well be genetically determined.” — Seth Klarman
