10 Most Oversold Semiconductor Stocks So Far in 2025

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1. Onto Innovation Inc. (NYSE:ONTO)

Year-to-Date Performance: -40.2%

Number of Hedge Fund Holders: 31

Onto Innovation Inc. (NYSE:ONTO) is one of the most oversold semiconductor stocks so far in 2025. On June 30, Benchmark Co. analyst Mark Miller reiterated a Buy rating on Onto Innovation, with an unchanged price target of $190. The key development behind this view is the company’s agreement to acquire Semilab International’s materials analysis business for about $545 million.

According to Miller, the deal will help Onto Innovation meaningfully. The acquisition brings in four high-growth product lines that complement the company’s existing portfolio and are expected to strengthen its position in the semiconductor metrology space.

Importantly, the deal also appears financially prudent as it is expected to be immediately accretive. Miller notes that the transaction should immediately enhance Onto’s gross and operating margins and lift adjusted EPS by more than 10% in the first year after closing (as per the company’s estimates). The acquisition is also expected to contribute around $130 million in additional annual revenue.

Onto Innovation Inc. (NYSE:ONTO) is a semiconductor equipment and process control company that provides advanced metrology, inspection, and data analytics solutions for chip manufacturing.

While we acknowledge the potential of ONTO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ONTO and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 11 Best Debt-Free Stocks to Invest in Right Now and 10 Most Oversold S&P 500 Stocks So Far in 2025.

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