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Here's How Much a $1000 Investment in Onto Innovation Made 10 Years Ago Would Be Worth Today

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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in Onto Innovation (ONTO - Free Report) ten years ago? It may not have been easy to hold on to ONTO for all that time, but if you did, how much would your investment be worth today?

Onto Innovation's Business In-Depth

With that in mind, let's take a look at Onto Innovation's main business drivers.

Headquartered in Wilmington, MA, Onto Innovation specializes in design, development, manufacture and support of metrology and inspection tools primarily for semiconductor device fabricators, silicon wafer manufacturers and advanced packaging manufacturers in the semiconductor space.

The company was formed through a merger between Nanometrics Incorporated and Rudolph Technologies on Oct 25, 2019. Built on the rich legacies of these two companies, Onto Innovation has emerged as a strong player in the semiconductor equipment industry with unique perspectives across the semiconductor value chain.

Onto Innovation’s products lines include Automated Metrology Systems, Integrated Metrology System, Macro Defect Inspection, Silicon Wafer All-surface Inspection/Characterization, Automated Defect Classification and Pattern Analysis, Yield Analysis, Opaque Film Metrology, Advanced Packaging Lithography and Industrial, Scientific, and Research Markets (4D Technology), Process Control Software and Yield Management Software.

The company has an extensive geographical footprint and supports a diverse range of customers in more than 18 countries. It provides best-in-class direct sales and application support through its offices located in the United States, Japan, Taiwan, South Korea, China, Singapore and Europe. Onto Innovation has its manufacturing operations in Wilmington, MA, Tucson, AZ; Bloomington, MN; Milpitas, CA and at various other locations globally.

In 2023, the company reported total revenues of $815.9 million.

The company faces competition in each of the markets it operates. Some of the key competitors include KLA Corporation, Nova Ltd, Camtek Ltd, GigaVis Co. Ltd and PDF Solutions, Inc.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Onto Innovation ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in May 2014 would be worth $13,271.66, or a gain of 1,227.17%, as of May 30, 2024, according to our calculations. This return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 174.32% and gold's return of 79.49% over the same time frame.

Analysts are anticipating more upside for ONTO.

Onto Innovation’s performance is gaining from increasing demand for its Dragonfly inspection system. The system is witnessing strong adoption owing to higher demand for advanced packaging of AI compute devices. Revenues from the system in Q1 jumped 30% sequentially. Management expects demand for the system to remain robust in second-quarter 2024 as well. It projects overall revenues in the $230-$240 million band for the quarter. Increasing orders to support advanced logic devices is driving the top line from the advanced nodes market. It is focused on inventory reduction to boost cash-flow performance. Improvements in supply-chain initiatives are likely to drive margin performance. Weak global macro conditions, forex fluctuations and fierce competition are concerns. Management expects DRAM revenues to remain soft in the second quarter.

Over the past four weeks, shares have rallied 22.38%, and there have been 3 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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