10 Best Debt Free Mid Cap Stocks to Buy Now

5. Onto Innovation Inc. (NYSE:ONTO)

Number of Hedge Fund Holders: 50

Enterprise Value: $5.72 billion

Market Capitalization: $6.56 billion

​Onto Innovation Inc. (NYSE:ONTO) is a semiconductor equipment and software provider that offers process control solutions, including optical metrology and inspection systems, to enhance yield and device performance in semiconductor manufacturing. Its product portfolio encompasses unpatterned wafer quality assessment, 3D metrology for chip features, macro defect inspection, metal interconnect composition analysis, factory analytics, and lithography for advanced semiconductor packaging. ONTO ranked first on our recent list of 10 Best Mid Cap Tech Stocks to Buy Now.

Onto Innovation Inc. (NYSE:ONTO) achieved a record Q4 with revenue of $264 million, marking their sixth consecutive quarter of growth. The company demonstrated strong financial performance in 2024, achieving 21% revenue growth, 37% operating income growth, and 43% growth in both cash from operations and EPS. AI packaging emerged as a significant growth driver, with inspection tool revenue more than doubling for the year. The company’s metrology revenue in advanced packaging exceeded $50 million, more than triple that of 2023.

Looking forward, Onto Innovation Inc. (NYSE:ONTO) identified three key secular growth drivers: AI demand growing at a high pace, increased demand for gate all around DDR5 memory and high-stack 3D NAND, and the electrification trend. The company’s gross margins improved every quarter in 2024 to end at nearly 55% in the fourth quarter, with continued focus on margin improvements throughout 2025. The company also launched several new products aimed at strengthening opportunities in advanced packaging, advanced nodes, and power semiconductors, with meaningful revenue expected in 2026. With close to zero debt and 50 hedge funds owning the stock, ONTO is one of the best debt free stocks to buy.