ONTO semiconductor industry growth

What happened: The semiconductor industry is projected to experience significant growth, with revenues expected to reach $1.3 trillion in 2026, a 64% year-over-year increase, according to Gartner. This surge is driven by a global memory crunch, indicating strong demand across various semiconductor products. Meanwhile, Onto Innovation (NYSE: ONTO), a promising player in the semiconductor space, has gained attention from analysts at Motley Fool. TCW funds, in their fourth-quarter 2025 investor letter, highlighted ON Semiconductor (ON) as a resilient company, praising its performance amidst market fluctuations.

Market impact: The semiconductor industry's growth will positively affect companies involved in manufacturing, designing, and distributing these products. Onto Innovation and ON Semiconductor are likely to benefit from increased demand and higher revenue. The broader semiconductor sector may see improved valuations and investor interest, given the strong growth projections.

What to watch next: Investors should closely monitor the upcoming earnings reports from Onto Innovation (expected on May 11, 2026) and ON Semiconductor (expected on April 27, 2026) to gauge their performance in the face of growing demand. Additionally, Gartner's semi-annual semiconductor forecast, scheduled for release in July 2026, will provide an updated outlook on the industry's growth trajectory and potential market shifts.