Key Takeaways Amkor is expanding HDFO capacity to capture rising AI and chiplet-driven demand.Multiple HDFO programs are nearing qualification, with AI data center volumes acting as a catalyst.The Zacks Consensus Estimate for advanced product revenues signals solid year-over-year growth.Amkor Technology (AMKR) is accelerating its High-Density Fan Out (HDFO), with the platform emerging as a key revenue catalyst. As the semiconductor industry shifts toward chiplet architectures and heterogeneous integration, ...

Onto Innovation Inc. (NYSE:ONTO) is among the 10 Unstoppable AI Stocks to Invest In Now. B. Riley Raises PT on Onto Innovation Inc. (ONTO) Stock Onto Innovation Inc. (NYSE:ONTO) is one of the Unstoppable AI Stocks to Invest In Now. On February 20, B. Riley lifted its price objective on the company’s stock to $275 from $240, while keeping a “Buy” rating, as reported by The Fly. The analyst opines that Onto Innovation Inc. (NYSE:ONTO)’s Q4 2025 results fell short of expectations. That being said, guidance ...

Core Viewpoint - Lam Research Corporation (LRCX) is experiencing significant growth driven by strong demand in the semiconductor industry, particularly in AI and advanced packaging, justifying its high valuation despite a premium price-to-earnings (P/E) ratio compared to peers and the industry average [2][9]. Financial Performance - LRCX reported Q2 FY26 revenues of $5.34 billion, reflecting a 22% year-over-year increase, and exceeded the Zacks Consensus Estimate by 2.1% [10]. - The company achieved non-GAAP earnings of $1.27 per share, surpassing the consensus mark by 8.5%, with a year-over-year increase of 39.6% [11]. - Non-GAAP operating margin rose to 34.3%, up 360 basis points from the previous year, indicating effective cost management [11][12]. Market Position and Growth Drivers - LRCX's stock has surged 174.9% over the past year, significantly outperforming the industry average gain of 35.1% and its peers [6][8]. - The company is well-positioned to benefit from the growing demand for advanced nodes and AI-driven technologies, with anticipated revenue growth of 19.5% and 21.2% for fiscal 2026 and 2027, respectively [18]. - Lam Research's innovative products, such as the ALTUS ALD tool and Aether platform, are critical for manufacturing next-generation semiconductors, which are essential for AI and cloud data centers [13][14]. Strategic Focus - The company is expanding its market share in AI and datacenter fabrication, with management projecting a strong 40% year-over-year growth in revenues from advanced packaging for 2026 [15][19]. - LRCX's consistent execution has maintained quarterly revenues above $5 billion for three consecutive quarters, driven by demand from major chipmakers like Taiwan Semiconductor Manufacturing and Samsung [17].

Group 1 - Alibaba-W (09988) increased by over 4.7% following the announcement of an investigation into the competitive landscape of the food delivery platform service industry by the State Council's Anti-Monopoly and Anti-Unfair Competition Committee [1] - Jiumaojiu (09922) rose nearly 3% after reporting a decline in same-store daily sales for its brands, with Taier, Songhuo Hotpot, and Jiumaojiu showing year-on-year decreases of 3.0%, 19.0%, and 16.4% respectively [2] - Xixiangfeng Group (02473) surged over 8% after announcing a strategic cooperation agreement with New Stone Technology, focusing on areas such as autonomous vehicle procurement and market promotion [3] - COSCO Shipping Energy (01138) increased by over 7.2% due to reports of the U.S. government's indefinite control over Venezuelan oil circulation and sales [4] Group 2 - Weilong Delicious (09985) rose over 2% as Goldman Sachs highlighted management's guidance for over 15% year-on-year revenue growth in FY2025, with a net profit margin between 18% and 20% [5] - Li Fu China (02136) surged by over 26.8% after announcing a board meeting to consider and approve the declaration of a special dividend to shareholders [6] - Kuaishou-W (01024) increased by over 5.8%, with a cumulative rise of over 20% in the month, driven by the popularity of its AI features on global social media platforms [7] - CATL (03750) fell nearly 3% as lithium carbonate prices surged past multiple thresholds, reaching 150,000 yuan per ton [8] Group 3 - Yidu Tech (02158) saw its stock price rise by over 8.8% after the approval of a key laboratory for the development of a multi-modal intelligent diagnosis and treatment system [9] - LFG Investment Holdings (03938) skyrocketed over 123.6% after announcing the transfer of 61.43% equity from its former major shareholder to an independent third party [10] Group 4 - Aktis Oncology (AKTS.US) debuted on the U.S. market with a rise of over 24.44%, focusing on developing alpha particle radiopharmaceuticals for common solid tumors [5] - Atlas Critical Minerals (ATCX.US) fell 41.33% after transitioning from OTCQB to NASDAQ, despite being an upgrade [6] - Critical Metals (CRML.US) rose 11.17%, with significant gains over the past week, driven by the approval of a new facility in Greenland [7] - Semiconductor equipment and materials stocks saw a broad increase, with ASML (ASML.US) reaching a historical high [8]

Core Viewpoint - The semiconductor equipment and materials sector experienced a significant rally, with multiple companies reaching new highs in their stock prices [1] Group 1: Company Performance - ASML (ASML.US) saw its stock price increase by over 5%, reaching an all-time high [1] - Lam Research (LRCX.US) rose nearly 6% [1] - Applied Materials (AMAT.US) increased by almost 4% [1] - Onto Innovation (ONTO.US) experienced a rise of over 3% [1] - Teradyne (TER.US) had a modest increase of 0.6% [1]

Group 1 - The semiconductor equipment and materials sector experienced a broad rally on Friday, with significant gains across major companies [1] - ASML saw its stock price increase by over 5%, reaching a historic high [1] - Lam Research (LRCX) rose nearly 6%, while Applied Materials (AMAT) increased by almost 4% [1] Group 2 - Onto Innovation (ONTO) experienced a stock price increase of over 3% [1] - Teradyne (TER) saw a modest gain of 0.6% [1]

Core Thesis - Onto Innovation Inc. is positioned favorably within the semiconductor industry, leveraging its advanced inspection and metrology systems to enhance production efficiency and quality control [1][2][5] Company Overview - Onto Innovation Inc. has a market capitalization of $6.47 billion and operates at the intersection of hardware and software, providing integrated solutions for semiconductor manufacturing [3] - The company’s share price was trading at $147.00 as of December 1st, with trailing and forward P/E ratios of 41.41 and 23.92 respectively [1][3] Financial Performance - Onto Innovation has demonstrated resilient fundamentals, with a revenue growth rate of 3.9% CAGR over three years, accelerating to 15.5% in the past year [3] - The company maintains gross margins of 53.5% and free cash flow margins of 23%, alongside a return on invested capital of 14.7% [3] Market Position and Growth Potential - The company has a beta of 1.60, indicating higher volatility, yet it has achieved a 34.7% compound annual growth rate in share price over the last five years [4] - Onto Innovation is well-positioned to benefit from trends in semiconductor miniaturization, heterogeneous integration, and AI-driven chip design, which are driving demand for its precision measurement systems [4][5] Strategic Importance - The company's technologies are critical for logic and memory manufacturers transitioning to advanced nodes, highlighting its strategic importance in the evolving semiconductor landscape [5]

Core Insights - Semtech Corporation (NASDAQ:SMTC) is a mid-cap technology company recognized for its innovative semiconductor products and operates in a competitive market alongside firms like LYFT, GTLB, EPAM, and ONTO, which exhibit strong demand trends and potential for significant brokerage upside [1] Market Performance - On November 24, 2025, Morgan Stanley set a price target of $64 for SMTC, indicating a potential downside of approximately -5.79% from the current trading price of $67.93, while SMTC's current price of $68.13 reflects a 6.70% increase, or $4.28, showcasing positive market sentiment [2] - The U.S. stock markets have experienced a bull run since early 2023, with the Dow, S&P 500, and Nasdaq Composite gaining 9.1%, 12.5%, and 15.5% respectively, supporting the growth potential of mid-cap stocks like SMTC [3] Stock Volatility and Metrics - SMTC's stock has demonstrated significant volatility, with a 52-week high of $79.52 and a low of $24.05, and it fluctuated between $64.51 and $68.39 on the current day, with a market capitalization of approximately $5.91 billion and a trading volume of 753,419 shares [4] Investment Strategy - Investing in mid-cap stocks like SMTC is viewed as a beneficial strategy for portfolio diversification, offering the growth potential of small caps combined with the stability of large caps, making them attractive for investors looking to capitalize on current market trends [5]

Market Overview - U.S. stock markets have experienced a significant bull run in 2023, with the Dow, S&P 500, and Nasdaq Composite increasing by 9.1%, 12.5%, and 15.5% respectively, while the S&P 400 index is up 2.2% year to date [1] Mid-Cap Stocks - Investment in mid-cap stocks is recognized as a strong portfolio diversification strategy, combining attributes of both small and large-cap stocks, with high potential for profitability and market share growth [2] - Mid-cap stocks are less susceptible to losses compared to large-cap stocks during economic slowdowns due to lower international exposure, and they can outperform small caps in a thriving economy due to established management and access to capital [3] Recommended Mid-Cap Technology Stocks - Five mid-cap technology stocks with favorable Zacks Rank and short-term price upside potential are Lyft Inc. (LYFT), GitLab Inc. (GTLB), EPAM Systems Inc. (EPAM), Onto Innovation Inc. (ONTO), and Semtech Corp. (SMTC), all carrying a Zacks Rank 2 (Buy) [4][8] Lyft Inc. (LYFT) - Lyft operates a ridesharing marketplace in the U.S. and Canada, benefiting from strong rider and driver growth, and aims to enter the robotaxi market through strategic partnerships [5][6] - Expected revenue and earnings growth rates for LYFT are 14.6% and 25.9% respectively for next year, with a short-term average price target indicating an 18.6% increase from the last closing price of $19.78, suggesting a maximum upside of 61.8% [9] GitLab Inc. (GTLB) - GitLab offers a DevOps platform that enhances software development efficiency, with strong enterprise demand for its AI-native solutions driving growth [10][11] - Expected revenue and earnings growth rates for GTLB are 19.7% and 16.7% respectively for next year, with a short-term average price target suggesting a 38.8% increase from the last closing price of $41.49, indicating a maximum upside of 73.5% [12] EPAM Systems Inc. (EPAM) - EPAM is benefiting from digital transformation trends and strategic acquisitions, with a focus on Gen AI capabilities expected to boost growth [13][14] - Expected revenue and earnings growth rates for EPAM are 6.9% and 9.9% respectively for next year, with a short-term average price target indicating a 15.7% increase from the last closing price of $180.98, suggesting a maximum upside of 40.9% [15] Onto Innovation Inc. (ONTO) - Onto Innovation is leveraging its diversified portfolio and AI-driven advanced packaging, with strong sales growth expected in the fourth quarter [16][17] - Expected revenue and earnings growth rates for ONTO are 14.8% and 19.9% respectively for next year, with a short-term average price target suggesting a 23.4% increase from the last closing price of $127.18, indicating a maximum upside of 41.5% [18] Semtech Corp. (SMTC) - Semtech is experiencing strong demand in industrial and datacenter markets, particularly for its connectivity solutions [19][20] - Expected revenue and earnings growth rates for SMTC are 10.1% and 24.5% respectively for next year, with a short-term average price target indicating a 15.3% increase from the last closing price of $63.85, suggesting a maximum upside of 41% [21]

Group 1 - Onto Innovation Inc. (NYSE:ONTO) has experienced a 23% decline in share price year-to-date despite positive trends in the semiconductor sector driven by AI [1] - The company reported third-quarter earnings of $218 million in revenue and $0.92 in earnings per share, falling short of analyst expectations of $220 million in revenue and $0.89 in earnings per share [2] - Onto Innovation is expanding its operations within the semiconductor supply chain and AI manufacturing, including the acquisition of Semilab's materials business and the introduction of its G6 metrology system targeting advanced chip fabrication technologies [3]