Onto Innovation Inc. (ONTO): one to watch?

Business fundamentals still look solid, but the stock ran up huge on AI hype and is now unwinding — no smoking gun, just a valuation reset plus deal-financing jitters.

👀 WATCH Fundamentals57/100

Fell 24% in 11 trading day(s) — now $241.89

Why ONTO dropped

The drop is mainly a broader semiconductor-equipment/AI-trade selloff Onto Innovation shares are sliding as part of a broader sell-off hitting semiconductor equipment makers, with investors pulling money out of richly valued AI infrastructure plays and locking in profits. This is compounded by investor unease over ONTO's own $1.3B convertible note sale used to fund buybacks and a $710M stake purchase in Rigaku The drop is being amplified by fresh worries over the company's $1.3 billion convertible note sale and its planned $710 million investment in Rigaku, which are forcing investors to rethink how near-term cash will be deployed. Notably, the stock had already roughly doubled in 2026 before this pullback began, so much of the "crash" is giving back an unsustainable run-up rather than reflecting new bad news about the underlying business.

Fwd P/E 24.3Op margin 16.8%Rev growth 9.5%Debt/equity —Analyst upside 52.8%

How this scored 57/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 10.3%

✅ Generates cash Free cash flow $197M

✅ Not drowning in debt Debt/equity unknown (limit 200%)

✅ Can pay its bills Current ratio 6.2 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 10/25

Operating margin 16.8% 6/9

Net profit margin 10.3% 4/8

Return on equity 5.3% 0/8

Growth Is it getting bigger, or dying? 12/25

Revenue growth 9.5% 4/9

Earnings growth -48.5% 0/8

Expected profit change 362.6% 8/8

Value Is it cheap right now? 17/25

Forward P/E 24.3 5/10

PEG ratio 1.2 6/8

Analyst target upside 52.8% 6/7

Balance sheet Will it survive? 18/25

Debt / equity unknown 3/10

Current ratio 6.2 8/8

Free cash flow $197M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-07-29. Research only — not financial advice.