Onto Innovation Inc. (ONTO) saw its stock price plummet by 23.54% in pre-market trading on Friday, as the semiconductor equipment manufacturer shocked investors with a disappointing forecast for its second-quarter performance. The company's projections for both revenue and profit fell significantly below Wall Street expectations, triggering a wave of selling pressure and analyst downgrades.

The unexpected shortfall in Onto Innovation's Q2 guidance has raised serious concerns among investors about the company's near-term growth prospects. While specific figures were not disclosed, the magnitude of the stock's decline suggests a substantial miss compared to analyst estimates. This development has not only impacted Onto Innovation but also cast a shadow over the broader semiconductor industry, known for its cyclical nature.

In response to the weak outlook, several analysts have adjusted their views on Onto Innovation. Stifel downgraded the stock from Buy to Hold and slashed its price target from $165 to $117. Benchmark cut its target price to $190 from $230, while Oppenheimer adjusted its price target to $130 from $150, maintaining an Outperform rating. These revisions reflect growing caution about the company's future performance and have likely contributed to the sharp sell-off. As the market digests this news, investors will be closely monitoring Onto Innovation for any additional details or explanations regarding the lowered forecast, with the company's performance in coming quarters crucial in determining whether this is a temporary setback or indicative of more persistent challenges in the semiconductor equipment sector.