On Semiconductor's 0.60% Decline and 77% Volume Surge to $510M Highlight Trump-Era Market Turmoil, Ranking 199th in Trading Activity

On August 20, 2025, On Semiconductor (ON) closed with a 0.60% decline, trading at a volume of $510 million—a 77.06% surge from the previous day—ranking 199th in market activity. The stock’s performance coincided with broader political developments under the Trump administration, which intensified scrutiny of national security protocols. Director of National Intelligence Tulsi Gabbard announced the revocation of security clearances for 37 current and former officials, accusing them of politicizing intelligence and leaking classified data. While no direct corporate ties to ON were cited, the move heightened market sensitivity to regulatory shifts and geopolitical risks, often impacting defense-linked sectors. The administration’s actions, including earlier revocations for figures like Joe Biden and Kamala Harris, underscored a pattern of leveraging security clearances as a political tool, potentially influencing investor sentiment toward companies operating in defense or cybersecurity spaces.

Legal and policy experts criticized the revocations as unprecedented and politically motivated. National security lawyer Mark Zaid labeled the decisions “unlawful” and “a politicization of the clearance process,” noting deviations from established norms. The White House’s broader strategy to purge perceived disloyal officials, including a 40% workforce reduction at the Office of the Director of National Intelligence, raised concerns about institutional stability. For firms like ON, which may rely on government contracts or partnerships, such volatility could create operational uncertainties, though the direct financial impact remains unquantified. Analysts observed that the administration’s focus on reshaping intelligence priorities might indirectly affect supply chains or procurement timelines in the semiconductor industry.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return averaged 0.98%, with a total return of 31.52% over 365 days. This indicates the strategy captured some short-term momentum but also reflected market volatility and potential timing risks.