ONTO vs. KLAC: Which Semiconductor Equipment Stock is the Better Bet? - TradingView

The semiconductor equipment industry is entering a significant investment cycle, driven by AI, advanced packaging, HBM, and next-generation chip manufacturing. KLA Corporation and Onto Innovation (ONT... Read original →

AI and advanced packaging are reshaping the semiconductor equipment stack: KLA’s full-stack capabilities in 3D integration and HBM inspection have deeply embedded its process control tools into foundries like TSMC and Samsung, creating a sticky ecosystem. Onto Innovation, via its Rigaku partnership, targets AI chip packaging yield gaps with hybrid optical/X-ray metrology; its Dragonfly platform is gaining ground in low-volume, high-complexity scenarios. Tightening U.S. export controls elevate localization costs, disproportionately impacting smaller Onto due to supply chain fragility. Competitors like Applied Materials may accelerate in-house inspection integration to reduce third-party reliance. Over the next 18 months, capex for advanced packaging will surge—KLA captures steady premium as the incumbent, while Onto’s current 39x P/E implies excessive pessimism; sustained >50% growth and successful qualification in Taiwan, China could trigger significant re-rating.