ON Semiconductor has been working with advisers recently to pursue Allegro, Bloomberg reported, citing unnamed sources.

Reportedly, semiconductor companies looking to beef up their automotive capabilities could consider buying Allegro.

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Last week, Allegro tapped Mike Doogue as its CEO, succeeding Vineet Nargolwala.

Bolton also remains positive about ON Semiconductor being highly leveraged to a cyclical recovery and expects the company to see the name perform well in the second half of the calendar for 2025.

Recently, ON Semiconductor began laying off ~2,400 of its employees across all business divisions in 2025.

ON Semiconductor expects first-quarter adjusted revenue of $1.35 billion-$1.45 billion, below the consensus of $1.69 billion.

The company expects adjusted EPS of $0.45–$0.55 below the consensus of $0.89.

Price Action: ALGM stock is up 19.3% at $26.56 at last check Monday. ON is up 0.06%.

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