Onto Innovation (ONTO) Q4 results, set for release Thursday, "should be solid" with consensus revenue at the midpoint of the company's 5% target range, Oppenheimer said in an earnings preview Tuesday.

"Onto is well-positioned with AI-focused Dragonfly, leading-edge Atlas, and rich R&D pipeline," Oppenheimer said.

The firm said that despite tariffs, "chip wars" and the Chinese startup DeepSeek that disrupted the US technology sector last week, "Onto outperforms by over-indexing AI," with derisked exposure to China, a "strong" management and $900 million cash with no debt.

Oppenheimer also said that Onto is "structurally well-positioned for long-term growth," despite the tariff concerns this week that "highlight persistent volatility."

Oppenheimer has an outperform rating for the company with a $275 price target.

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