Teradyne, Inc. (NASDAQ:TER) is one of the stocks Jim Cramer commented on. Cramer mentioned that he likes the company, as he commented: Second most powerful theme, again, a technology theme. The semiconductor capital equipment companies that make the machines needed to boost memory and storage production. There are only a handful of these, think KLA, Lam. And then there are other companies that test what these companies make. Again, only a handful. I like Teradyne. Photo by Nicholas Cappello on Unsplash ...

21 February 2026 | 12:05PM EST Equity Research GLOBAL TECHNOLOGY: SEMICONDUCTOR CAPITAL EQUIPMENT Raising 2026/27 WFE estimates, driven by memory and foundry strength Bottom Line: Positive semiconductor CapEx datapoints during 4Q earnings season drive our WFE estimates meaningfully higher. We raise our 2026/27/28 WFE estimates to $132/$160/$174 bn (+20%/+21%/+9%) from $124/$132/$144 bn (+11%/+6%/+9%) previously, reflecting recent CapEx revisions and a more constructive outlook from SPE suppliers. We see mem ...

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 ...

Financial Data and Key Metrics Changes - The company reported record revenue of $267 million for Q4 2025, representing a 22% increase from Q3 [12] - Gross margin improved by about 50 basis points to 54.6% from Q3, while operating margins increased to 25.2%, up 410 basis points from the previous quarter [12] - For the full year, revenue reached $1,005 million, also a record for the company [12] Business Line Data and Key Metrics Changes - Advanced packaging and specialty devices generated approximately $145 million in Q4, accounting for slightly more than half of total revenue, with sales from the 2.5D packaging business doubling compared to Q3 [13] - Advanced nodes revenue more than doubled in 2025 to $308 million, driven by growth in both DRAM and logic, which together represent about 75% of the total [14] - Advanced packaging revenue is expected to grow over 30% in 2026, while advanced nodes are projected to grow in the range of 10%-20% [8][10] Market Data and Key Metrics Changes - The semiconductor capital equipment spending is projected to experience a powerful upcycle driven by AI investments, with NVIDIA forecasting a 40% CAGR for global AI infrastructure over the next five years [3] - Analysts project strong wafer fab equipment (WFE) growth in the range of 10%-20% in 2026, contingent on the availability of new clean room space [4] - The company has a backlog that has nearly doubled over the last three months, supporting strong growth expectations [10] Company Strategy and Development Direction - The company is focused on expanding its technology portfolio to meet the insatiable demand for AI, with a volume purchase agreement valued at over $240 million covering metrology demand through 2027 [4][5] - The company is ramping up extended factories to support a $2 billion run rate, indicating confidence in capacity to meet demand [24] - The integration of Semilab is expected to enhance operational discipline and improve scalability and profitability [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong momentum in advanced packaging and advanced nodes, with expectations for revenue in Q1 2026 to be in the range of $275 million-285 million [10][15] - The company anticipates continued margin expansion each quarter in 2026, with gross margin expected to improve by approximately 50 basis points from Q4 levels [16] - Management noted that customer discussions are increasingly constructive, with several extending forecasts into 2027 [4] Other Important Information - The company completed the acquisition of Semilab for $445 million in cash and stock, which is expected to contribute to revenue growth in 2026 [15] - The adoption of the One Big Beautiful Bill Tax Act resulted in cash tax savings of $19 million in 2025 and an estimated $14 million in 2026 [14] Q&A Session Summary Question: Market outlook for the year - Management expects advanced packaging to grow over 30% this year, with broad-based demand across various manufacturers [21] Question: Backlog and capacity for growth - The company is set up to serve a $2 billion run rate, with no significant capacity issues anticipated, though supply chain constraints are being managed [24][25] Question: Expectations for advanced packaging growth - Advanced packaging revenue is expected to be stable throughout the year, with potential upside from the adoption of G5 technology [30] Question: Visibility in advanced nodes growth - Advanced nodes are expected to grow in the range of 10%-20%, with ongoing discussions around volume purchase agreements providing better insight [33] Question: Contribution of Semilab to revenue - Semilab is expected to contribute low hundreds to $110 million in revenue for 2026, with challenges anticipated in the power semiconductor segment [59] Question: Growth rates for CoWoS and HBM inspection businesses - Growth rates for both segments are expected to be relatively similar, with demand for memory expanding [50]

Onto Innovation (NYSE:ONTO) Q4 2025 Earnings call February 19, 2026 04:30 PM ET Company ParticipantsBrian Roberts - CFOCraig Ellis - Director of ResearchMichael Plisinski - CEOSidney Ho - VP of Investor RelationsConference Call ParticipantsBlayne Curtis - Managing Director and Senior Equity AnalystBrian Chin - Senior Equity Research AnalystCharles Shi - Managing Director and Senior AnalystDavid Dooley - Senior Research AnalystEdward Yang - Equity Research AnalystVedvati Shrotre - Director and Equity Researc ...

Financial Data and Key Metrics Changes - The company reported record revenue of $267 million for Q4 2025, representing a 22% increase from Q3 2025 [12] - Gross margin improved by approximately 50 basis points to 54.6% from Q3, while operating margins increased to 25.2%, up 410 basis points from the previous quarter [12] - For the full year 2025, total revenue reached $1,005 million, also a record for the company [12] Business Line Data and Key Metrics Changes - Advanced packaging and specialty devices generated approximately $145 million in Q4, accounting for slightly more than half of total revenue, with sales from the 2.5D packaging business doubling compared to Q3 [13] - Advanced nodes revenue more than doubled in 2025 to $308 million, driven by growth in both DRAM and logic, which together represent about 75% of the total [14] - Advanced packaging revenue is expected to grow over 30% in 2026, while power semiconductor revenue is anticipated to decline around 10% due to weakening demand for EVs [9][14] Market Data and Key Metrics Changes - The semiconductor capital equipment spending is projected to experience a powerful upcycle driven by AI investments, with NVIDIA forecasting a 40% CAGR for global AI infrastructure over the next five years [3] - Analysts project strong wafer fab equipment (WFE) growth in the range of 10%-20% in 2026, contingent on the availability of new clean room space [4] - The company has secured a volume purchase agreement valued at over $240 million from a customer covering metrology demand through 2027 [4] Company Strategy and Development Direction - The company is focused on expanding its technology portfolio to meet the surging demand for AI, with a strong emphasis on advanced packaging and advanced nodes [4][18] - The integration of Semilab is expected to enhance operational efficiency and contribute to revenue growth, despite anticipated challenges in the power semiconductor market [14][61] - The company aims to improve gross and operating margins consistently throughout 2026, leveraging increased production from extended factories [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to outperform in 2026, citing a doubling of backlog over the last three months and strong customer demand [18] - The operational discipline and strategic investments are expected to create meaningful shareholder value, with a focus on managing supply chain challenges [18] - Management anticipates continued growth in advanced packaging and advanced nodes, with revenue expected to exceed $300 million in Q2 2026 [11][15] Other Important Information - The company adopted the One Big Beautiful Bill Tax Act, resulting in cash tax savings of $19 million in 2025 and an estimated $14 million in 2026 [14] - The company is transitioning to a calendar quarter and fiscal year-end of March 31, June 30, September 30, and December 31 [16] Q&A Session Summary Question: Market outlook for the year - Management expects advanced packaging to grow over 30% this year, with broad-based demand across various manufacturers [21] Question: Backlog and capacity for growth - The company is set up to serve a $2 billion run rate, with no significant capacity issues anticipated, although supply chain strains are being managed [24] Question: Expectations for advanced packaging growth - Advanced packaging revenue is expected to be stable throughout the year, with potential upside from the adoption of G5 technology [30] Question: Visibility in advanced nodes for the second half of the year - Advanced nodes are expected to grow in the mid-teens, with ongoing discussions around volume purchase agreements providing better insight into growth [33] Question: Contribution of Semilab to revenue - Semilab contributed approximately $9 million in Q4, with expectations for low hundreds to 110 million in revenue for 2026 [61] Question: Growth rates for CoWoS and HBM inspection businesses - Both segments are expected to grow at similar rates, with complexities in CoWoS potentially leading to higher capital intensity [51]

Core Viewpoint - Goldman Sachs has raised price targets by over 10% on four blue-chip dividend stocks, indicating optimism about their future performance and potential for growth [1]. Group 1: Price Target Increases - Goldman Sachs raised the price target for Applied Materials from $310 to $390, reflecting a significant increase of 26% [1]. - The price target for Belden was increased from $144 to $175, representing a 21.5% rise [1]. - BorgWarner's target price was raised from $54 to $78, marking a 44.4% increase [1]. - Cameco's price target was increased from $115 to $131, which is a 13.9% rise [2]. Group 2: Company Profiles - **Applied Materials**: A semiconductor capital equipment company that provides solutions for the semiconductor and display industries, operating in three segments: Display, Applied Global Services, and Semiconductor Systems [1]. - **Belden**: A global supplier of connection solutions, focusing on network infrastructure and broadband solutions, with applications in various vertical markets including healthcare and data centers [1]. - **BorgWarner**: Engaged in clean-technology solutions for vehicles, the company operates in four segments, including PowerDrive Systems and Battery & Charging Systems, focusing on electric and hybrid vehicle technologies [1]. - **Cameco**: A Canadian company that supplies uranium fuel for nuclear reactors, involved in uranium mining and refining, with operations at Cigar Lake and McArthur River mines [2].

Financial Performance - Ichor Holdings, Ltd. reported a non-GAAP EPS of $0.01, beating the consensus estimate of -$0.06 [1][2] - The company reported revenue of approximately $223.6 million, surpassing the estimated $220.6 million [1][2] - On a GAAP basis, the company reported an EPS of -$0.46, indicating a net loss [1][2] Operational Efficiency - Ichor achieved a gross margin of 9.4% on a GAAP basis and 11.7% on a non-GAAP basis, reflecting operational efficiency [2] - Despite a decline from the previous year's non-GAAP earnings of $0.08 per share, the company managed to maintain a reasonable level of operational efficiency [2] Financial Ratios - The company has a negative trailing price-to-earnings (P/E) ratio of approximately -28.43, indicating current earnings challenges [3] - The price-to-sales ratio of about 1.21 suggests that investors are willing to pay $1.21 for every dollar of sales, showing confidence in revenue generation [3] - Ichor maintains a low debt-to-equity ratio of about 0.24 and a strong current ratio of approximately 3.16, indicating good short-term financial health and liquidity [3]

Core Insights - Ichor Holdings, Ltd. reported fourth quarter and fiscal year 2025 financial results, indicating a favorable alignment with earlier expectations and a positive outlook for fiscal 2026 driven by strengthening customer demand [1][2][3]. Financial Performance Fourth Quarter 2025 Highlights - Revenue for Q4 2025 was $223.6 million, a decrease from $239.3 million in Q3 2025 and $233.3 million in Q4 2024 [2][6]. - The gross margin was 9.4% on a GAAP basis and 11.7% on a non-GAAP basis, compared to 4.6% and 12.1% respectively in Q3 2025 [1][6]. - The net loss for Q4 2025 was $(15.96) million, with a diluted EPS of $(0.46), improving from a net loss of $(22.85) million and diluted EPS of $(0.67) in Q3 2025 [2][6]. Fiscal Year 2025 Highlights - Total revenue for FY 2025 reached $947.7 million, representing an 11.6% increase from $849.0 million in FY 2024 [3][6]. - The net loss for FY 2025 was $(52.8) million, with a diluted EPS of $(1.54), compared to a net loss of $(20.8) million and diluted EPS of $(0.64) in FY 2024 [3][6]. Non-GAAP Financial Results - For Q4 2025, non-GAAP net income was $0.3 million, with a non-GAAP diluted EPS of $0.01, down from $2.3 million and $2.8 million in Q3 2025 and Q4 2024 respectively [4][6]. - For FY 2025, non-GAAP net income was $7.9 million, with a non-GAAP diluted EPS of $0.23, compared to $5.9 million and $0.18 in FY 2024 [4][6]. Cash Flow and Balance Sheet - At the end of Q4 2025, cash and cash equivalents totaled $98.3 million, an increase of $5.8 million from the previous quarter but a decrease of $10.4 million from the prior year [8][9]. - Cash provided by operating activities for Q4 2025 was $9.2 million, driven by net cash from operations despite a net loss of $(15.96) million [10][9]. Outlook for First Quarter 2026 - The company expects Q1 2026 revenue to range from $240 million to $260 million, with GAAP diluted EPS projected between $(0.10) and $0.02, and non-GAAP diluted EPS between $0.08 and $0.16 [5][6].

Group 1 - Lam Research Corporation (NASDAQ:LRCX) is recognized as a significant stock within the S&P 500, with Jim Cramer recommending a staged investment approach [1] - The company specializes in semiconductor capital equipment, essential for enhancing chip production, and reported strong results recently [1][3] - Despite its strong performance, Lam Research experienced a nearly 6% decline following initial gains after its earnings report [1] Group 2 - Lam Research develops equipment for various semiconductor processes, including deposition, etching, and cleaning, with systems for tungsten and copper metallization, plasma and atomic-layer deposition, dielectric and conductor etch, and wafer cleaning [3]