Chip company Onto Innovation, Inc. (ONTO) up 238% in a year from AI demand.
In the latest trading session, Onto Innovation (ONTO) closed at $323.92, marking a -5.9% move from the previous day.
Onto Innovation which has surged by over 260% and has outperformed the Russell 1000 by 10x over the past year, is still deemed worthy of a buy rating. ONTO is positioned across front-end and back-end semiconductor manufacturing, with over 60% of revenue now AI compute-related, with >$1B worth of opportunities ahead. Operating margins which are at 26.7% are poised to expand to 30% by the end of the year, as advanced node opportunities pick up.
ONTO is benefiting from AI-driven advanced packaging demand with Dragonfly G5 adoption, expanding customer wins and a pipeline targeting new market share.
Onto Innovation (ONTO) closed at $316.15 in the latest trading session, marking a -5.9% move from the prior day.
Shares of Onto Innovation, Inc. ONTO have been one of the standout performers in the semiconductor equipment industry, delivering a remarkable 174.2% gain over the past year, outperforming the Zacks Nanotechnology industry's growth of 171.5%. The company has outpaced the Zacks Computer and Technology sector and the S&P 500 composite's growth of 42.8% and 26.3%, respectively.
Onto is expanding through acquisitions and partnerships, adding X-ray, metrology and inspection technologies to boost growth and future revenues.
The mean of analysts' price targets for Onto Innovation (ONTO) points to a 28.2% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.
ONTO targets more than 30% 2026 revenue growth to over $1.3B, citing AI-driven demand and new Dragonfly/Atlas systems - execution risks remain.
Onto Innovation Inc. ONTO described first-quarter 2026 as a better-than-expected start, fueled by strong AI-driven demand in advanced nodes and advanced packaging. The company also raised its 2026 outlook, projecting revenue growth of more than 30% and targeting an operating margin above 30% by the fourth quarter.
Explore Onto Innovation's (ONTO) international revenue trends and how these numbers impact Wall Street's forecasts and what's ahead for the stock.
The mean of analysts' price targets for Onto Innovation (ONTO) points to a 26.1% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.