ONTO
Onto Innovation Inc.

Onto Innovation Inc.ONTO

Technology · Semiconductor Equipment & Materials
283.81USD
+2.84%
Sep 23, 2026
ONTO overview ready
Critical provider of advanced packaging metrology and yield analytics tools
Onto supplies semiconductor process-control equipment and software, including optical metrology, macro-defect inspection, 2D/3D packaging inspection, panel-substrate lithography and yield analytics.
Strong narrative exposure
Exposed to the Semiconductor Supply Chain Localization narrative through Advanced Packaging and Semiconductor Test — bottleneck supplier.
No clear price read
Longer-term context reads near trend floor, with a near-term setup of daily advance.
Demanding valuation
The price embeds expectations that run ahead of the cash the business currently produces.
Unremarkable fundamentals
Primary risk
Cyclicality of semiconductor capital spending.
Market Sep 22Filing Jun 30Price action Sep 22Research Sep 8

Conviction Level

NarrativeHeat8.7ThemeHeat8.6PriceAction6.3Valuation1.2CompanyPosition9.5
Price
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Price Action

No clear price read
Longer-term context reads near trend floor, with a near-term setup of daily advance.
EntryReset + recovery

The stock remains extended from its long-term weekly base, but the recent reset toward the daily SMA200 aligned with support at the weekly EMA21. Daily structure is recovering above the fast averages, improving the current entry location.

Key Financials

Market Cap
$13.9B
Avg Volume (60D)
1.1M
60 sessions
Revenue Growth YoY
+21.0%
FY2024 vs FY2023
Gross Margin
+50.4%
Trailing twelve months
Operating Margin
+12.0%
Trailing twelve months
Free Cash Flow Yield
+1.8%
Distance from 200DMA
+14.4%
Next Earnings
2026-11-05
P/E
105.0x
Market metrics as of Sep 22, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Fundamentals & Valuation

Both valuation perspectives agree this company is expensive.
Onto Innovation Inc. has an Expensive valuation stance because the price embeds expectations that run ahead of the cash the business currently produces. It trades at a 1.8% free-cash-flow yield, which requires sustained delivery to be justified.

What changed

Company Research

Thesis
Onto supplies semiconductor process-control equipment and software, including optical metrology, macro-defect inspection, 2D/3D packaging inspection, panel-substrate lithography and yield analytics.
Opportunity
High opportunity
Chipmaker and AI-system investment in domestic advanced packaging, assembly and test capacity, requiring increasingly capable yield-management, inspection, metrology and process-control equipment.
Key risk
Cyclicality of semiconductor capital spending.

Narrative & Theme

Semiconductor Supply Chain Localization
Part of Advanced Packaging and Semiconductor Test, with strong fit.
It is nevertheless a strong adjacent beneficiary of the same advanced-packaging and semiconductor-test demand system: complex multi-die packages need more inspection and metrology steps to control overlay, defects, panel/substrate quality and yield.
Narrative HeatHot8.7 / 10
Theme HeatHot8.6 / 10

Business & Markets

Technology · Semiconductor Equipment & Materials
What they do

Onto Innovation Inc. designs, develops, manufactures, and supports process control tools for semiconductor manufacturing, including defect inspection and metrology systems used globally.

How it earns

The company generates revenue primarily through transactional sales of equipment and software solutions to semiconductor manufacturers.

Products & services
Lithography systems
Process control analytical software
Automated and integrated metrology systems
Silicon wafer all-surface inspection
Macro defect inspection
Automated defect classification and pattern analysis
Yield analysis
Opaque film metrology
Advanced packaging lithography
Customers & end markets
Semiconductor manufacturers
Advanced packaging fabs
Market position

Niche player specializing in advanced process control and inspection tools within the semiconductor equipment industry.

Demand drivers
High cyclicality

Semiconductor equipment demand is closely tied to the cyclical semiconductor manufacturing investment cycles.

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