Shares of Onto Innovation Inc. (ONTO) plummeted 23.54% in early 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 forecast, several analysts have downgraded Onto Innovation's stock and cut their price targets. Notably, Stifel downgraded the stock to Hold from Buy and reduced its price target to $117 from $165. Benchmark lowered its target price to $190 from $230, while Oppenheimer adjusted its price target to $130 from $150, maintaining an Outperform rating. These downgrades have further contributed to the negative sentiment surrounding the stock, exacerbating the sell-off.