Onto Innovation (ONTO) Reports Third Quarter Earnings

We recently published 13 Best Semiconductor Equipment Stocks to Buy According to Hedge Funds. Onto Innovation Inc. (NYSE:ONTO) is one of the stocks Jim Cramer recently discussed.

Onto Innovation Inc. (NYSE:ONTO)’s products cater to several parts of the chip manufacturing process. These include defect inspection, metrology, and packaging. The shares have lost 23% year-to-date despite the AI-generated tailwinds that have helped the semiconductor sector.

The most recent dip in Onto Innovation Inc. (NYSE:ONTO)’s shares came yesterday after the firm reported its earnings report for the third quarter. The results saw it post $218 million in revenue and $0.92 in earnings per share. Analysts, on the other hand, were expecting Onto Innovation Inc. (NYSE:ONTO) to earn $220 million in revenue and $0.89 in earnings per share.Onto Innovation (ONTO) Reports Third Quarter Earnings

Onto Innovation Inc. (NYSE:ONTO) has also been expanding its operations to grow its presence in the semiconductor supply chain and AI manufacturing.  The firm announced in June that it would buy the materials business of Hungarian-origin firm Semilab. Onto Innovation Inc. (NYSE:ONTO) also announced in September that its G6 metrology system would target leading-edge chip fabrication technologies such as gate-all-around (GAA) processes.

While we acknowledge the potential of ONTO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

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