ONTO stock declined 13% due to trade tensions, but has growth potential

From Nasdaq: 2025-04-16 08:01:00

Onto Innovation’s stock has declined by 12.8% in the past month, outperforming the Nanotechnology industry’s 14.2% drop. The Computer and Technology sector and S&P 500 composite also saw declines. Trade tensions and tariffs have impacted market performance.

Despite recent losses, ONTO stock rose 0.3% in the last session, closing at $120.47. It’s trading 50% below its 52-week high of $238.93. Investors are weighing the opportunity versus risk of investing in ONTO given its current price.

Onto Innovation had a strong 2024, with the fourth quarter marking six consecutive quarters of growth. AI-driven semiconductor packaging is a key market for the company, with a 180% year-over-year growth in AI-packaging revenues. The transition to 3D NAND is also driving growth.

In 2025, Onto Innovation expects revenue growth to continue, particularly in the advanced nodes segment. The company projects total revenues in the range of $260-$274 million for the first quarter. However, escalating expenses and macroeconomic uncertainties pose challenges.

ONTO stock is currently trading at a premium compared to the industry. While the company has strong growth potential, uncertainties in the global macro environment and competition raise concerns. Investors are advised to hold onto their positions for now.

Analysts have revised earnings estimates for ONTO downward in the past 60 days. Other tech stocks like Broadcom, Cisco Systems, Inc., and NETGEAR Inc. present better options. Broadcom has a Zacks Rank #1 (Strong Buy), while Cisco and NETGEAR have a Zacks Rank #2 (Buy) each.



Read more at Nasdaq: ONTO Slides 13% in a Month: How Should Investors Play the Stock?