ONTO

AMAT, ONTO and BSET made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on July 7, 2026.

Onto Innovation's 25.5% rally reflects AI-led demand, advanced packaging gains and new product momentum, but rich valuation raises questions about the next move.

Chip company Onto Innovation, Inc. (ONTO) up 238% in a year from AI demand.

Onto Innovation which has surged by over 260% and has outperformed the Russell 1000 by 10x over the past year, is still deemed worthy of a buy rating. ONTO is positioned across front-end and back-end semiconductor manufacturing, with over 60% of revenue now AI compute-related, with >$1B worth of opportunities ahead. Operating margins which are at 26.7% are poised to expand to 30% by the end of the year, as advanced node opportunities pick up.

Onto Innovation and KLA are riding AI-driven chip demand, but their growth paths, valuations and advanced packaging exposure differ.

ONTO is benefiting from AI-driven advanced packaging demand with Dragonfly G5 adoption, expanding customer wins and a pipeline targeting new market share.

Onto Innovation (ONTO) closed at $316.15 in the latest trading session, marking a -5.9% move from the prior day.

The crowd on Polymarket is pricing a 100% probability that SpaceX completes its IPO by June 30, with the offering targeted at $135 per share for a $75 billion raise.

Shares of Onto Innovation, Inc. ONTO have been one of the standout performers in the semiconductor equipment industry, delivering a remarkable 174.2% gain over the past year, outperforming the Zacks Nanotechnology industry's growth of 171.5%. The company has outpaced the Zacks Computer and Technology sector and the S&P 500 composite's growth of 42.8% and 26.3%, respectively.

Onto is expanding through acquisitions and partnerships, adding X-ray, metrology and inspection technologies to boost growth and future revenues.