Goldman Sachs bets on the kings of artificial intelligence: Boost for Onto Innovation

The dynamic world of artificial intelligence (AI) is incessantly bringing forth fresh stock stars, and Goldman Sachs, with its "Best Phase 2 AI Stocks" report, has set out to find the most promising representatives of the industry. Onto Innovation, a mid-sized company providing indispensable lithography systems and defect inspection products for semiconductor manufacturing, has secured a significant position on this list. While consumer technology stocks experienced a rapid surge during the pandemic, the AI sector today proves resilient to challenges in the financial markets. The exponential increase in demand for data center infrastructure and an enabling ecosystem for AI, which relies on semiconductor solutions from companies like Onto Innovation, is unmistakable. Moreover, the rapid development of technology is sparking a massive investment frenzy not only in Silicon Valley. In the impressive data centers set to be built across the USA according to OpenAI CEO Sam Altman's vision, companies like Onto Innovation play a crucial role. The production of the necessary chips is hardly feasible without the intelligent packaging and technology of these firms. With an astonishing 50.64% increase in share price so far this year, Onto Innovation demonstrates that it is thriving in the waters of the AI boom, and the company could continue to benefit from this momentum given the growing demand for specialized solutions in chip production. Interestingly, utility companies in the S&P Index recorded the best returns between March and May, driven by strong investments in data centers. The revenue forecasts for semiconductor companies in the coming years also shine brightly: growth of more than double compared to 2019 is expected. Such financial prospects could lead other companies in this niche to experience similar stock surges as the current AI frontrunner. In an environment where the development towards a digital cosmos is gaining momentum, companies like Onto Innovation remain relentlessly in the focus of investors betting on the success of artificial intelligence.