A pullback looms in this chipmaker after it doubled. Trading the potential decline with options

On Semiconductor has turned into one of the market's hottest recovery stories, but the stock may now be running well ahead of its fundamentals. The stock has nearly doubled from the low $50s to $100 in just a few months as investors rushed back into anything tied to EV and AI data-center power. The problem is that EV demand has become far more uneven, price-sensitive and policy-driven, while ON's core automotive business is still operating declining growth and weak margins. Global EV sales rose more than 20% in 2025 and Europe's March 2026 EV registrations were strong, so the long-term EV story is still intact. But February 2026 global EV registrations fell 11% year over year, with China down 32% and North America down 35% — highlighting how fragile near-term demand can be when subsidies fade and the macro backdrop worsens. The stock is now being valued on the idea of a clean rebound in EV and industrial demand, yet the company's recent results still reflect inventory overhangs, auto weakness and growing competition in silicon carbide from Chinese players. In other words, investors are paying up for the recovery before the recovery has shown up in the numbers. Trade timing & outlook ON now looks technically stretched after a near-vertical run from about $50 to almost $100. The stock is extremely overbought, momentum has become crowded, and the latest pullback suggests buyers may finally be tiring near the highs. …