Artisan Small Cap Fund Picked Onto Innovation (ONTO) Amid Data Center Expansion And AI-Related Demand.

4 days ago 10

Soumya Eswaran

Fri, June 5, 2026 astatine 8:49 AM CDT 3 min read

Artisan Partners, an concern absorption company, released its first-quarter 2026 capitalist missive for the “Artisan Small Cap Fund”. A transcript of the missive is disposable to download here. US equities were mixed successful Q1 2026, with large indices hitting all-time highs successful January earlier retreating amid geopolitical tensions, changing monetary policy, and economical uncertainty. Energy stocks surged, outpacing the market, portion worth outperformed maturation arsenic investors moved from tech to commodity-sensitive sectors. Market enactment broadened, with mid- and small-cap indices performing amended than ample caps. The Iran struggle influenced marketplace behavior. AI-related investments supported superior spending and earnings, though capitalist sentiment was mixed. The portfolio saw antagonistic implicit returns but outpaced the Russell 2000® Growth Index, offering immoderate downside protection. Investor Class: ARTSX, Advisor Class: APDSX, and Institutional Class: APHSX returned -2.72%, -2.68%, and -2.69%, respectively, successful the archetypal 4th compared to -2.81% instrumentality for the index. The marketplace shifted towards cyclical, commodity sectors, little aligned with high-quality franchises, owed to geopolitical events and vigor shocks. Despite this, galore portfolio companies maintained coagulated net aligned with their nett cycles. The Firm views this situation arsenic supportive of its banal enactment approach, focused connected bottom-up banal enactment crossed industries. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2026.

In its first-quarter 2026 capitalist letter, Artisan Small Cap Fund highlighted Onto Innovation Inc. (NYSE:ONTO). Onto Innovation Inc. (NYSE:ONTO) is simply a semiconductor instrumentality and bundle institution that designs, developments, manufactures, and supports process power tools for macro-defect inspection and metrology. On June 4, 2026, Onto Innovation Inc. (NYSE:ONTO) closed astatine $274.76 per share. One-month instrumentality of Onto Innovation Inc. (NYSE:ONTO) was -3.48%, and its shares gained 185.91% implicit the past 52 weeks. Onto Innovation Inc. (NYSE:ONTO) has a marketplace capitalization of $13.67 billion.

Artisan Small Cap Fund stated the pursuing regarding Onto Innovation Inc. (NYSE:ONTO) successful its Q1 2026 capitalist letter:

"During the quarter, we initiated caller GardenSM positions successful Onto Innovation Inc. (NYSE:ONTO), Baldwin Group and Freshpet. Onto is simply a starring supplier of process power and inspection solutions utilized successful precocious semiconductor wafer manufacturing. We reentered the presumption pursuing a anterior exit driven by concerns that KLA’s increasing standard and absorption successful precocious multi-layer inspection could disrupt the competitory landscape. While KLA has continued to put successful inspection solutions benefiting from AI-driven demand, we person not seen a worldly deterioration successful Onto’s competitory positioning. Meanwhile, our condemnation has strengthened arsenic Onto benefits from an early-stage betterment successful its representation extremity market, driven by information halfway enlargement and AI-related demand. We spot this arsenic the opening of a imaginable representation supercycle, supporting accelerating growth, operating leverage and affirmative estimation revisions."

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