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    Does Semilab Deal and Conference Activity Signal a Strategic Shift for Onto Innovation (ONTO)?

    Simply Wall St·08/25/2025 12:31:43
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    • Onto Innovation recently participated in the 6th Annual Needham Virtual Semiconductor & SemiCap 1x1 Conference and the Oppenheimer 28th Annual Technology, Internet & Communications Conference, showcasing its latest developments and strategic direction.
    • These events came shortly after the announcement that Onto Innovation is acquiring Semilab International’s materials analysis unit, a move expected to significantly enhance its revenue and margin profile by the second half of 2025.
    • We'll explore how the anticipated boost from the Semilab acquisition and mixed analyst signals may reshape Onto Innovation's investment narrative.

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    Onto Innovation Investment Narrative Recap

    To own Onto Innovation, an investor needs to believe that demand for advanced packaging and AI-driven chip technologies will rebound, fueling growth for Onto's metrology and inspection solutions. The company's recent participation in key industry conferences supports its technology leadership but does not directly affect its most pressing catalyst, the successful integration and impact of the Semilab acquisition, nor does it materially reduce the primary risk of delayed customer spending in core end markets.

    Among recent announcements, the expected acquisition of Semilab International’s materials analysis unit stands out. This move is set to expand Onto's product offering and is projected to lift both revenue and profit margins, serving as a central driver for potential earnings growth and reinforcing Onto’s role in next-generation chip production.

    Yet, despite these growth opportunities, investors should be aware that a slower than expected recovery in AI packaging demand or delays in customer spending could...

    Read the full narrative on Onto Innovation (it's free!)

    Onto Innovation's narrative projects $1.4 billion revenue and $311.2 million earnings by 2028. This requires 11.0% yearly revenue growth and a $111.3 million increase in earnings from $199.9 million today.

    Uncover how Onto Innovation's forecasts yield a $125.00 fair value, a 15% upside to its current price.

    Exploring Other Perspectives

    ONTO Community Fair Values as at Aug 2025
    ONTO Community Fair Values as at Aug 2025

    Three members of the Simply Wall St Community put Onto Innovation’s fair value between US$125 and US$165.99 per share. While opinions vary, many continue to watch the risk from customer demand cycles, reminding you that outlooks can differ sharply and are well worth comparing.

    Explore 3 other fair value estimates on Onto Innovation - why the stock might be worth as much as 53% more than the current price!

    Build Your Own Onto Innovation Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Onto Innovation research is our analysis highlighting 3 key rewards that could impact your investment decision.
    • Our free Onto Innovation research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Onto Innovation's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.