William Blair Small-Mid Cap Growth Fund on Onto Innovation
Thesis
Onto Innovation provides process-control solutions across semiconductor inspection, metrology and lithography. Strong quarterly results and higher 2026 revenue guidance were supported by robust front-end and advanced-packaging demand, better visibility and record backlog. Adoption is broadening across advanced packaging and advanced nodes as the company wins new applications, ramps silicon photonics volumes and expands its customer base. The fund trimmed after strong performance but still expects durable growth over the next few years and outperformance versus more cyclical semiconductor-capital-equipment peers.
“We continue to believe the company is poised to drive durable growth over the next few years”
Key risks
- Less compelling risk/reward following strong stock performance