According to the smart financial APP, investment bank Oppenheimer initiates coverage of semiconductor supplier onto innovation (ONTO.US) with an "outperform" rating and a target price of $260, which is 28% higher than the current level.

Analyst Edward Yang of Oppenheimer said: "Onto is a key driver of artificial intelligence (AI). Onto provides advanced packaging and high-bandwidth memory (HBM) yield enhancement tools, achieving triple-digit growth through partnerships with the main suppliers of nvidia (NVDA.US) and taiwan semiconductor (TSM.US) and SK hynix."

Similar to ultra clean semiconductors (UCTT.US), onto has a relatively small exposure to the Chinese market, accounting for only about 10% of total revenue.

Yang pointed out:" We expect the annual sales growth rate for the next three years to exceed 20%, and the revenue for 2025-26 is expected to be 2% higher than market expectations. Onto's flexibility, value, and strength in the overlooked backend packaging area, as well as leading frontend technology, help gain more market share from customers seeking to diversify from a single supplier."

Despite some fluctuations in the summer, Onto's stock price has risen 33% year-to-date and over 60% in the past 12 months.

Overall, Wall Street analysts rate Onto as a "strong buy" with an average target price of $252.50, 24% higher than the current level.