Needham raises target price to $360 from $330 for Onto Innovation Inc.

Needham & Company has raised its price target for Onto Innovation Inc. (NYSE: ONTO) to $360 from $330, maintaining a Buy rating on the stock. This adjustment follows the firm’s review of the company’s recent financial performance and updated margin expectations. While the latest quarterly results were largely in line with prior expectations, the firm noted stronger-than-anticipated operating margins as key factors supporting the upward revision.

Onto Innovation, a provider of process control, metrology, and defect inspection systems for semiconductor manufacturing, has seen increased demand driven by advancements in AI and high-performance computing. The company recently announced $1.1 billion private offering of convertible senior notes due 2031, with potential for an additional $165 million in notes, to fund strategic initiatives, stock repurchases, and general corporate needs.

Analysts at other firms have also raised their price targets for ONTO in recent months, with Jefferies and Cantor Fitzgerald setting targets as high as $400 and $410, respectively. The stock has experienced significant growth in 2026, driven by strong AI-related demand and a record backlog of $1.1 billion.