Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund’s Investor Class fund ARTMX returned 5.11%, Advisor Class fund APDMX posted a return of 5.14%, and Institutional Class fund APHMX returned 5.14%, compared to an 8.14% return for the Russell Midcap Growth Index. US equities achieved solid Q4 gains, concluding a strong year. Following Donald Trump’s election win, optimism surged over deregulation and tax cuts. However, concerns about inflation from proposed tariffs and immigration policies emerged in December, introducing market volatility. Despite this, markets ended 2024 with strong gains, marking one of the best two-year performance stretches in decades. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Artisan Mid Cap Fund emphasized stocks such as N Semiconductor Corporation (NASDAQ:ON). ON Semiconductor Corporation (NASDAQ:ON) provides intelligent sensing and power solutions. The one-month return of ON Semiconductor Corporation (NASDAQ:ON) was -13.98%, and its shares lost 42.68% of their value over the last 52 weeks. On March 4, 2025, ON Semiconductor Corporation (NASDAQ:ON) stock closed at $44.49 per share with a market capitalization of $18.749 billion.

Artisan Mid Cap Fund stated the following regarding ON Semiconductor Corporation (NASDAQ:ON) in its Q4 2024 investor letter:

"We ended our investment campaigns in ON Semiconductor Corporation (NASDAQ:ON), Monday.com and CoStar Group during the quarter. ON Semiconductor is a leading designer and manufacturer of chips for power management and image sensing. From a battery-electric vehicle (EV) standpoint, ON is a leading producer of silicon carbide chips. Shares have been under pressure as the company grapples with multiple quarters of inventory right-sizing across the entire auto supply chain and slower-than-expected EV sales growth. While ON is seeing smaller sales declines than peers due to its market share gains, we are concerned that moderating US and European EV growth trends will weigh on the company’s 2025 performance. We exited the position."

An engineer analyzing a complex engineering schematic while surrounded by equipment and tools used in the development of optical sensing solutions.

ON Semiconductor Corporation (NASDAQ:ON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held ON Semiconductor Corporation (NASDAQ:ON) at the end of the fourth quarter which was 45 in the previous quarter. While we acknowledge the potential of ON Semiconductor Corporation (NASDAQ:ON) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed ON Semiconductor Corporation (NASDAQ:ON) and shared the list of most undervalued semiconductor stocks to buy. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.