Onto Innovation Inc.'s stock surged 7.71% during intraday trading on Friday, extending its recent positive momentum.

The significant price increase follows the company's release of better-than-expected preliminary first-quarter financial results. Onto Innovation reported Q1 revenue of approximately $292 million, surpassing its prior guidance range of $275 million to $285 million. Furthermore, the company raised its second-quarter revenue guidance to a range of $320 million to $330 million, signaling strong confidence in its near-term business outlook.

Concurrently, the stock received multiple analyst upgrades and price target increases. Stifel upgraded Onto Innovation from Hold to Buy and raised its price target to $350 from $220. B. Riley increased its target to $330 from $310, while Jefferies lifted its target to $325 from $300. Analysts cited the successful qualification and adoption of the company's new Dragonfly G5 platform, which is winning orders in high-bandwidth memory and logic for AI chips, as key drivers for the positive reassessment and the company's strong turnaround momentum in the artificial intelligence sector.