Onto Innovation's (ONTO) turnaround looks "strong," with momentum building across artificial intelligence, including memory, with recent Dragonfly G5 platform qualification removing the stock's largest valuation overhand, Oppenheimer said in a Friday note.

Launched just last month, the company's Dragonfly G5 platform is seeing rapid qualification and adoption and is already winning key high bandwidth memory and logic orders and further "re-burnishes Onto's leadership" in process control for AI chips, the note said.

Oppenheimer also raised its 2026 revenue and earnings per share estimates by 6% and 2027 expectations by 10%, with the company reporting preliminary Q1 revenue of $292 million, above prior guidance of $275 million to $285 million and forecasting Q2 revenue to be in the range of $320 million to $330 million.

The firm raised its price target on Onto Innovation to outperform with a price target of $350.

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