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If You Invested $1000 in Onto Innovation a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

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

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Onto Innovation ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in October 2014 would be worth $13,626.90, or a 1,262.69% gain, as of October 8, 2024. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 194.35% and the price of gold went up 107.86% over the same time frame.

Looking ahead, analysts are expecting more upside for ONTO.

Onto Innovation is gaining from the rapid adoption of its Dragonfly inspection system. Its second-quarter revenues of $242.3 million beat the company’s view of $230-$240 million, driven by strength in all the major segments. It noted record sales of $164 million from specialty and advanced packaging customers, driven by rising demand from AI packaging customers. It is focused on inventory reduction to improve cash flow. The launch of the JetStep X500 lithography tool, designed for next-generation glass substrates used in panel-level packaging, is a plus. It expects third-quarter revenues in the $245-$255 million band on robust investments by HBM manufacturers in advanced packaging capacity and new capabilities. Our estimate for third-quarter revenues stands at $250.1 million. A weak global macro backdrop and stiff rivalry are woes.

 

The stock is up 14.44% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2024. The consensus estimate has moved up as well.

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