Needham ups Onto Innovation target, removes from Conviction List

Needham analyst Charles Shi raised the firm’s price target on Onto Innovation (ONTO) to $200 from $150 and keeps a Buy rating on the shares. The firm also removed Onto Innovation from its Conviction List in place of BE Semiconductor. Needham says high bandwidth memory is transitioning from brute-force stacking to a “plethora of new innovation-based scaling.” This ensures HBM “remains the king” of artificial intelligence memory for another 5-10 years, the analyst tells investors in a research note. Needham believes the back-end semiconductor capital equipment names will outperform the front-end in 2026. It encourages investors to “look for names in this space that has been forgotten for a while.”