From Yahoo Finance: 2025-05-21 16:24:00

Jefferies downgraded Onto Innovation Inc. (ONTO) to “Hold” from “Buy” on May 20, lowering the price target to $110 from $135 due to concerns over the AI Packaging market correction. The company must prove its ability to regain market share in 2027.

A technician observed the precision of Onto Innovation Inc.’s macro defect inspection process.

Jefferies analyst raised doubts about Onto Innovation Inc.’s potential for double-digit growth and highlighted the lasting impact on the company’s CoWoS market opportunity. The semiconductor equipment company faces challenges in the AI packaging solutions industry.

Investors are advised to consider other AI stocks with higher return potential and limited downside risk. For more information on promising AI stocks, check out our report on the cheapest AI stock.

Read more: Jefferies Downgrades Onto Innovation (ONTO) to Hold, Cuts PT