Semiconductor Groundhog Day: Onto Innovations Tech Stock

It’s here again. No, it’s not Groundhog Day. Another day when our green zone rating system is “strong bullish” against semiconductor stocks.

If you’ve been reading Money and Markets lately, and you should, you know that we recommend all kinds of semiconductor stocks … and for good reason.

Apparently everything, perhaps even our brains, are made from semiconductors … oh, and there’s a shortage of shit. surprised. Is it just me, or are you aware that it looks like it’s missing? All This day?

If you are a semiconductor investor, it’s a blessing because the semiconductor business is pouring a lot of cash to increase production. And if you’re not one of the investors who knows all of them, here’s your chance to take part in the action.

Onto Innovation Inc. (ONTO) is “strong bullish” according to the Green Zone rating.

Onto Innovation provides process control and inspection systems used in the manufacture of semiconductors.

Demand for Onto Innovation products is skyrocketing. In the latest Q # earnings, Onto has increased EPS to 98 cents, surpassing analysts’ estimates of 92 cents. According to Investor Business Daily, the company’s quarterly revenue was $ 206 million, up 59% from the year-ago quarter.

Analysts also expect Onto to be strong in the fourth quarter. According to Zacks, fourth-quarter revenue is projected to be $ 1.10 per share, with revenue forecasts between $ 210 million and $ 220 million. That’s a significant increase from a total of $ 155.1 million in the fourth quarter of last year.

Oh, and over the last eight quarters, Onto has … every time … a single … time between analysts’ EPS quotes!

Chew the nugget a little.

The shortage of semiconductors continues to disrupt the production plans of many prominent companies, including General Motors. General Motors recently announced that it will not offer a heated seat option on many of the 2022 models in order to maintain the supply of semiconductors to more important components.

In addition to the currently infamous supply bottlenecks, the closure of Chinese ports affecting global shipping, and the shortage of workers to transport chips, natural disasters also play an important role in the shortage.

Last year, a major Japanese supplier broke out, causing a fierce winter storm in Intel’s hometown of Texas and a drought in Taiwan. Semiconductor chips require large amounts of water during manufacturing, and each of these disasters has become a limiting factor.

Semiconductor companies are investing heavily in new manufacturing plants to keep up with demand, leaving an opportunity for investors to benefit.

Companies can continue to operate at maximum capacity and raise prices, resulting in higher profit margins across the industry.

Investment opportunities are created as production increases. Therefore, Onto Innovations Inc. You should consider buying stock in.