Why Onto Innovation Is A Still A Buy After More Than Doubling In 4 Years

Onto Innovation has delivered over 220% returns since 2022, outperforming the S&P 500 and maintaining strong momentum. ONTO's Q4 saw record revenue and cash generation, but revenue growth was minimal at 1.1% Y/Y, with gross margin declining to 46.4%. Advanced packaging and specialty devices now drive over half of ONTO's revenue, with management targeting a $2 billion run rate via capacity expansion.