Onto Innovation Inc. (NYSE: ONTO): Analyst Bullish on Semiconductor Growth and AI Infrastructure

• Analyst Rating: Morgan Stanley initiated coverage with an "Overweight" rating and a $371 price target for Onto Innovation Inc.
• Strong Performance & Growth Drivers: The stock has gained over 174% in the past year, fueled by robust demand for AI infrastructure and advanced semiconductor packaging.
• Strategic Investments: Onto Innovation Inc. plans a $710 million investment in Rigaku to expand its metrology capabilities and broaden its technology portfolio.

Onto Innovation Inc. (NYSE: ONTO) is a leading company that provides essential equipment and software for the semiconductor industry. Its innovative products help chip manufacturers control their production processes, ensuring optimal quality and efficiency. A key competitor for ONTO in this specialized market is KLA Corporation (NASDAQ: KLAC).

On June 14, 2026, Morgan Stanley analyst Shane Brett initiated coverage on ONTO with an "Overweight" rating. This positive rating suggests the analyst believes the stock will perform better than others in its sector. Brett set a price target of $371 for the company.

At the time of the announcement, ONTO's stock was priced at $323.88, which means the new target represents a potential upside of approximately 14.55%. This positive outlook follows a period of strong market performance. As highlighted by Zacks Investment Research, ONTO's shares have gained over 174% in the past year.

The stock's growth is fueled by strong demand for AI infrastructure and advanced semiconductor packaging. The company projects its 2026 revenue will surpass $1.3 billion. It also anticipates its advanced packaging revenue will grow by more than 50% in 2026, thanks to recent customer wins.

To bolster its market position, ONTO plans a $710 million investment for a stake in Rigaku. This strategic move is intended to expand its metrology capabilities, which are essential for measuring and inspecting semiconductor components. This is part of a larger strategy to broaden its technology portfolio through partnerships and acquisitions.