Onto Innovation (ONTO) is rising as investors react to a string of upbeat, near-term catalysts centered on advanced packaging for AI chips. The company recently said its Dragonfly G5 inspection platform was successfully qualified for 2.5D advanced packaging applications, with initial shipments expected in June, and it lifted its preliminary first-quarter 2026 revenue estimate to $292 million versus its prior $275–$285 million outlook. (investors.ontoinnovation.com)

The move is also being reinforced by follow-through from Wall Street after the company’s pre-announcement and product-qualification update. B. Riley raised its price target to $330 from $310 while keeping a Buy rating, and Evercore ISI also lifted its target to $315 from $250 while reiterating an Outperform rating, highlighting continued momentum in advanced packaging. (insidermonkey.com)

Adding to the bullish narrative, Onto disclosed an agreement to acquire 61,123,436 shares of Rigaku Holdings—equal to 27% of Rigaku’s shares outstanding (excluding treasury shares)—for about $710 million. The filing frames the transaction as part of a broader strategic collaboration intended to expand next-generation semiconductor process-control solutions, which investors are treating as a longer-duration growth lever beyond the near-term quarter beat. (sec.gov)

Key near-term checkpoints include any updates on Dragonfly G5 ramp timing and June shipment cadence, plus whether the stronger preliminary Q1 revenue flows into higher full-year expectations when results are formally reported. Investors will also watch for more details on the Rigaku partnership economics, including how quickly it can translate into differentiated metrology/inspection offerings and incremental revenue or margin upside. (investors.ontoinnovation.com)