ONTO Onto Innovation Inc.

$ONTO just posted record Q2 revenue of $343M, up 35% year over year, with backlog topping $1 billion. RBC Capital took notice too, starting coverage Outperform with a $400 target on the back of its Dragonfly G5 platform and advanced packaging exposure. Shares ran as high as $339.

RBC Capital Markets initiated coverage of Onto Innovation with an Outperform rating and a $400 price target, highlighting the company’s advanced packaging and semiconductor metrology businesses. Analyst Srini Pajjuri pointed to Onto’s exposure to fast-growing chip manufacturing technologies, including 2.5D and 3D packaging, High Bandwidth Memory, Chip-on-Wafer-on-Substrate and Embedded Multi-die Interconnect Bridge. RBC identified Onto’s Dragonfly G5 inspection platform as a key revenue driver through 2027, alongside emerging opportunities in silicon photonics. The company reported record Q2 2026 revenue of $343 million, up 35% year over year, while its backlog exceeded $1 billion. Onto shares benefited from the broader technology rally and traded as high as $339.04, after opening at $328.98. The move came as September U.S. payrolls showed only 29,000 jobs added, well below the roughly 84,000 consensus estimate. $ONTO