Onto Innovation Hits Record High; Buys Rigaku Stake For $710M

• Onto and Rigaku to collaborate on developing X-ray solutions for semiconductor manufacturing process.
• External analysts estimate the market opportunity for these solutions could exceed $1 billion within five years, Onto stated.
• Onto Innovation is on track to record its highest ever monthly gains.

Onto Innovation (ONTO) shares rose in after-market trading to hit record highs after acquiring a 27% stake in X-ray technology manufacturer Rigaku Holdings Corporation (RGAKF) for approximately $710 million. 

The transaction is expected to close in the second half of 2026, subject to regulatory approvals.

ONTO will integrate its Ai Diffract analysis software with Rigaku’s critical dimension small‑angle X‑ray scattering (CD‑SAXS) platforms, both of which are used in the process of semiconductor manufacturing. This new offering has already been selected by two key customers, and addresses a market that external analysts estimate to be in excess of $1 billion within the next five years, according to ONTO. 

Onto’s Dragonfly G5 Platform Piques Analyst Interest

Onto Innovation in March this year launched its Dragonfly G5 platform, used for advanced packaging applications, with initial shipments anticipated in June.

Analysts at B.Riley, Evercore, Oppenheimer and Stifel all raised the target price on the stock by an average of 22% following the announcement. 

Furthermore, Cantor Fitzgerald raised its price target on ONTO to $300 from $275 earlier this month, reiterating its ‘Overweight’ rating on the stock ahead of the firm’s earnings on May 6, where Cantor expects ONTO to beat revenue expectations. 

According to data from Koyfin, all seven of the seven analysts covering ONTO rate it ‘Buy’ or higher. The 12-month average price target on the stock is $330.71, representing a potential upside of about 12% from last close. 

What Do Retail Investors Say?

On Stocktwits, retail sentiment on ONTO stock was ‘bullish’ with ‘high’ message volumes. 

One user signalled to a buying opportunity, taking support from the host of analyst price target upgrades on the stock. 

https://stocktwits.com/IN0V8/message/650816261

The stock gained 87% year-to-date. 

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