Group 1 - Nova Ltd. is recognized as one of the most technologically advanced and rapidly growing niche semiconductor equipment suppliers [1] - The company's metrology solutions are essential for the production of advanced GAA transistors, 3D NAND, and advanced chip packaging technologies such as HBM and Chiplet [1]

Core Viewpoint - Credo Technology Group (CRDO) and Nova Limited (NVMI) are highlighted as standout companies in the tech sector, particularly in the semiconductor industry, which is currently performing well [1][11]. Company Overview - Credo specializes in high-performance connectivity solutions, while Nova provides metrology solutions for advanced process control in semiconductor manufacturing [2]. Growth Trajectories - Credo's total sales are projected to increase by 86% in FY26 to $811.4 million from $436.77 million in FY25, with FY27 sales expected to rise another 21% to $987.2 million. Annual earnings per share (EPS) are forecasted to exceed 100% growth in FY26 to $1.48, up from $0.70 in FY25, and to increase by 22% in FY27 to $1.80 [3][5]. - Nova's sales are anticipated to grow by 28% this year, reaching $923.4 million in FY26, with EPS expected to rise by 26% in FY25 and another 10% in FY26 to $9.33 [5][6]. Stock Performance - Credo's stock has increased nearly 40% year-to-date, while Nova's shares have gained 43%. Over the past three years, Credo's stock has surged over 650%, and Nova's shares have risen more than 200%, outperforming broader market indexes [7]. Earnings Estimates and Revisions - Credo's FY26 and FY27 EPS estimates have risen over 30% in the last 60 days, indicating potential for further upside [8][9]. - Nova's FY25 EPS estimates have seen slight increases in the past two months, with FY26 estimates up by 3% [9]. Market Position - Both companies are positioned in the top 35% of Zacks' Electronics-Semiconductors Industry, reflecting a strong business environment and growth potential [1][11].

Core Insights - The semiconductor industry is experiencing growth driven by the artificial intelligence (AI) boom, leading to a comparison between Applied Materials (AMAT) and Onto Innovation (ONTO) as potential investment picks [2] Group 1: Company Overview - Applied Materials (AMAT) is a major manufacturer of semiconductor fabrication equipment, providing solutions for deposition, etching, inspection, and metrology [3] - Onto Innovation (ONTO) specializes in metrology and inspection solutions, including automated metrology systems and advanced packaging services [10] Group 2: Financial Performance - AMAT's revenues from advanced semiconductor nodes exceeded $2.5 billion in fiscal 2024, with expectations to double in fiscal 2025 [7] - The Zacks Consensus Estimate for AMAT's fiscal 2025 revenues is $28.8 billion, reflecting a year-over-year growth of 6% [7] - ONTO's fiscal 2025 revenues are estimated at $992.6 million, indicating a modest year-over-year growth of 0.53% [13] Group 3: Growth Prospects - AMAT's integration of AI-based image recognition in its inspection solutions is expected to enhance the analysis of nanoscale defects in advanced chips [5] - ONTO's 3Di bump metrology solution is gaining traction due to the demand for complex AI chip packages, although it faces competition in the 2.5D AI packaging market [12] Group 4: Market Challenges - AMAT is positioned for continued growth in fiscal 2025, while ONTO is experiencing tool slot losses in AI packaging and revenue challenges due to US-China tensions [11] - ONTO's reliance on the Chinese market, which contributed 10% of its total revenues in fiscal 2024, raises concerns amid ongoing geopolitical tensions [13] Group 5: Valuation and Stock Performance - In the past three months, AMAT shares gained 5.8%, while ONTO shares declined by 29.4% [15] - Both companies are trading below the sector average in terms of forward price-to-sales multiples, with AMAT at 4.36X and ONTO at 4.57X, indicating AMAT is relatively cheaper [17] Group 6: Investment Outlook - AMAT is viewed as having a stronger growth profile and solid fundamentals, making it a more attractive investment compared to ONTO, which has weaker growth projections [18] - AMAT holds a Zacks Rank 3 (Hold), while ONTO has a Zacks Rank 5 (Strong Sell), indicating a clear advantage for AMAT in the current market [19]

Core Viewpoint - Onto Innovation Inc. reported better-than-expected first-quarter financial results but issued second-quarter guidance below analyst estimates [1][2]. Financial Performance - Quarterly earnings were $1.51 per share, exceeding the analyst consensus estimate of $1.47 per share [1]. - Quarterly sales reached $267.00 million, surpassing the analyst consensus estimate of $266.30 million [1]. Future Guidance - The company expects second-quarter adjusted earnings to be between $1.21 and $1.35 per share, compared to analysts' estimates of $1.50 per share [2]. - Sales guidance for the second quarter is projected to be between $240.00 million and $260.00 million, while analysts expected $269.10 million [2]. Market Reaction - Following the earnings announcement, Onto Innovation shares fell by 29.1%, trading at $89.90 [3]. Analyst Ratings - Needham analyst Charles Shi maintained a Buy rating but lowered the price target from $230 to $150 [5]. - Benchmark analyst Mark Miller also maintained a Buy rating, reducing the price target from $230 to $190 [5].

REHOVOT, Israel, May 8, 2025 /PRNewswire/ -- Nova (Nasdaq: NVMI) today announced financial results for the first quarter, the three-month period ended March 31, 2025.First Quarter 2025 Highlights: Record Quarterly revenue of $213.4 million, a 10% QoQ increase up 50% YoY. Record GAAP net income of $64.8 million, or $2.03 per diluted share, exceeding the Company guidance, a 28% increase QoQ, and up 77% YoY. Record non-GAAP net income of $70.0 million, or $2.18 per diluted share, exceeding the Company guidance ...