10 High-Flying Stocks to Buy Now

8) Onto Innovation Inc. (NYSE:ONTO)

% Increase on a YTD Basis: ~38%

Expected Upside Potential: 30.86%

Number of Hedge Fund Holdings: 39

Onto Innovation Inc. (NYSE:ONTO) is engaged in designing, developing, manufacturing, and supporting process control tools that perform optical metrology.

Wall Street analysts believe that long-term demand for Onto’s Dragonfly systems should continue to aid moving forward. Such systems, that are used in advanced packaging, are anticipated to benefit from the growing AI market.

Onto Innovation Inc. (NYSE:ONTO) announced the launch of its Packaging Applications Center of Excellence (PACE) in Wilmington, Massachusetts. This center will help foster innovation in panel-level packaging (PLP), which is a critical component of advanced AI and memory packages. Onto Innovation Inc. (NYSE:ONTO) rolled out a new suite of products, including the JetStep X500 lithography system and the Firefly G3 inspection system. These products are designed to help the industry’s shift to glass core panels for advanced IC substrates and panel-level packaging.

Market experts believe that Onto Innovation Inc. (NYSE:ONTO) is expected to see strong growth as a result of its involvement with Nvidia’s primary suppliers, TSMC and SK Hynix. Onto Innovation Inc. (NYSE:ONTO)’s tools are critical for advanced packaging and HBM applications. These areas continue to experience rapid expansion.

In Q2 2024, Onto Innovation Inc. (NYSE:ONTO) saw revenues of $242 million, outpacing the high end of guidance. This was aided by additional pilot line expansions for high-performance computing using gate-all-around transistor architecture and HBM aiding the AI market growth. For Q3 2024, the company expects revenue in the range of $245 million – $255 million and GAAP diluted EPS of between $0.98 to $1.08.

Analysts at Benchmark reissued a “Buy” rating on the shares of Onto Innovation Inc. (NYSE:ONTO), issuing a price target of $230.00 on 9^th August. Artisan Partners, an investment management company, released its second-quarter 2024 investor letter. Here is what the fund said:

“During the quarter, we initiated new GardenSM positions in Liberty Formula One, Elastic and Onto Innovation Inc. (NYSE:ONTO). Onto Innovation provides process control solutions and inspection systems needed for advanced semiconductor packaging inspection and optical metrology. Wafer-level packaging inspection is a small yet rapidly growing segment within process control tied to increasing chipset sales from AI, edge computing and wearable technology advancements. Optical metrology growth is driven by a transition to 3D architecture, which requires greater numbers of sensitive layers to be measured and tracked. This growth is further supported by gross margin and operating margin expansion, as increasing complexity should drive pricing power.”