From Financial Modeling Prep: 2025-01-13 12:24:00

Needham analysts reiterated their Buy rating for Onto Innovation (NYSE:ONTO) with a lowered price target of $220. The company was added to the Needham Conviction List as the top pick for 2025 due to its strong position in advanced technologies and minimal exposure to China. Onto’s limited reliance on the Chinese market is seen as a key strength amidst geopolitical challenges in the semiconductor industry.

Onto Innovation’s strategic focus on advanced node technologies and partnerships with leading clients position it for industry-leading growth in 2025. Analysts expect AI demand to be a significant growth driver, especially through Onto’s involvement in advanced packaging. The company’s advanced packaging segment is forecasted to remain strong throughout 2025, with advanced node revenue expected to grow over 40% this year.

Growth in gate-all-around (GAA) technologies is anticipated to continue, with DRAM, particularly from Samsung, showing renewed strength in the first half of 2025. Onto’s advanced node business, which has historically leaned toward NAND, may benefit from any recovery in NAND-related spending. The company’s advanced node revenue is already showing signs of recovery, with over 40% growth projected for 2025.



Read more at Financial Modeling Prep:: Onto Innovation Named Top Pick for 2025 at Needham