Has anyone heard of a company called Onto innovation . A recent article on MF seemed very interesting. In summary -
They specialize in semiconductor chip packaging and scan for defects thus enabling higher chip yields (sounds similar to AEHR) . With AI driving higher capabilities in these chips the semiconductor manufacturers are also transitioning to new architecture called GAA thus ONTO will also be able to drive new revenues. Even Nvidia is reportedly moving to the new chip packaging eventually. The market for these packaging technology is huge expected to be over 15B with a dominant position for KLA Corporation but ONTO is supposedly taking market share from KLA . From a revenue perspective they are small and lumpy with 800 m currently and this is going to a down year for them as most of their revenues were tied to the PC , laptops and phones but they have won some massive orders recently which is tied to their AI offerings . As AI and the EV space evolve it will drive semiconductor industry innovation exponentially and this seems like the SAAS moment for the chip industry metaphorically speaking and the nuts and bolts layers like AEHR and ONTO will benefit in the next 5 years.
They also have about 21% from software services but not sure if it’s a recurring revenue . I am not familiar to the chips industry but if someone in this group can unpack this company technology and drivers - may help the group analyze this further because I can potentially see the growth metrics starting to explode next year for them and very few analysts cover them currently.
PS - tried posting at SAUL’S discussion board but somehow my permissions dont allow me to post after the redesign of the boards. IF some one could forward this to Bear I would appreciate that
Rajesh
