KLAC - Onto Innovation: Rosy Prospects Are Aggressively Priced In
2024-07-08 05:57:17 ET
Summary
- Onto Innovation is a semiconductor process control company aiming to boost yields, performance, quality, and reliability for clients.
- The company's financial performance peaked in 2022, and after a tougher 2023, the company is setting itself up for record results.
- Shares have tripled since early 2023, trading at a high multiple of earnings, making the risk-reward less compelling.
In January, I called Onto Innovation ( ONTO ) an interesting but demanding story. The continued rise of the semiconductor sector, especially segments tied to AI and data centers, made Onto Innovation some kind of hidden gem as it was a prime beneficiary of the rise of AI....
Onto Innovation: Rosy Prospects Are Aggressively Priced In