Onto Innovation Inc. (ONTO): Ken Fisher’s Top Tech Pick on Growth and Margins

Onto Innovation Inc. (NYSE:ONTO) is one of the top tech stocks in billionaire Ken Fisher’s portfolio. On May 6, analysts at Needham reiterated a Buy rating on Onto Innovation Inc. (NYSE:ONTO) and increased the price target to $330 from $320.

Onto Innovation Inc. (ONTO): Ken Fisher’s Top Tech Pick on Growth and Margins

The positive stance and price target hike are in response to the company delivering quarterly results that were above expectations. The company posted record quarterly revenue of $292 million, up 10% sequentially from the fourth quarter of 2025.

The research firm flaunted the company’s gross margins, which improved to 55.7% though this was partially offset by higher operating expense expectations. Net income came in at $70.8 million, or $1.42 per diluted share, a drop from $74.8 million, or $1.51 per diluted share.

Needham has also touted the strategic capital and business alliance between Onto Innovation Inc. (NYSE:ONTO) and Rigaku Holdings Corporation. The alliance sets the stage for the combination of Rigaku X-ray technologies with Onto Innovation’s complementary optical metrology and advanced analytics software. In return, the companies are to deliver next-generation hybrid metrology solutions for complex semiconductor devices.

Onto Innovation Inc. (NYSE:ONTO) provides advanced process control, inspection, metrology, and software solutions for the semiconductor and microelectronic manufacturing industries. It focuses on identifying and solving manufacturing defects to improve yield, device performance, and quality, particularly in advanced AI chip packaging, logic, and memory fabrication.

While we acknowledge the risk and potential of ONTO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ONTO and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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