Anyone invested in the semiconductor sector knows that the industry is headed into a down cycle. Huge demand during the pandemic led to chip shortages, but now that central banks are tightening up their fiscal policies to tamp down on inflation -- and economic growth -- demand has slumped, suppliers are loaded with inventory, and prices are falling for memory chips worldwide. Despite a rally this week, the iShares Semiconductor ETF (NASDAQ: SOXX) is still down 39% on the year.

And yet, the semiconductor industry is going to grow over the long term, and likely at a much faster rate than the overall economy. Today, many chip stocks trade at bargain levels, setting up those who invest in them now for potentially outsized gains once the market recovers.

One under-the-radar company in this space that looks like a terrific buy today is equipment supplier Onto Innovation (NYSE: ONTO).

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Source Fool.com