Should I Buy Onto Innovation (ONTO)? Finance YouTuber Analysis

The YouTuber suggests Onto Innovation for its critical role in inspecting defects in complex HBM stacks. He notes its high-speed imaging technology, the selection of its Dragonfly G5 system for next-gen HBM4, and a significant multi-year purchase agreement from a leading memory maker, indicating its indispensable position in the supply chain.

“That's nearly a quarter of a full year's revenue committed years in advance by a single buyer. Which is about as close as you're going to get to a guaranteed forward business as this industry is going to see.”

The YouTuber suggests Onto Innovation as a buy, noting its role in providing optical process solutions to the semiconductor market, which benefits from VR, robotics, and self-driving trends. He points to strong sales growth (37% annualized over three years) and significant improvement in operating margin.

“Here we see sales growth and margins for the company and I'll explain that next but it's exactly what we're looking for sales grew at a 29 pace over the last 12 months and 37 annualized over the last three years.”