Onto Innovation initiated with an Outperform at Oppenheimer

Oppenheimer initiated coverage of Onto Innovation (ONTO) with an Outperform rating and $260 price target. Onto is a key AI enabler through yield enhancement tools for advanced packaging and high-bandwidth memory, or HBM, generating triple-digit growth through Nvidia’s (NVDA) primary suppliers TSMC (TSM) and SK Hynix, the analyst tells investors. Onto is a critical “picks-and-shovels” play that addresses Nvidia’s “most pressing bottlenecks” while Onto’s niche leading-edge focus “insulates it somewhat from China decoupling,” the analyst added.