DMC Group LLC increased its position in shares of KLA Corporation (NASDAQ:KLAC – Free Report) by 887.3% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 8,560 shares of the semiconductor company’s stock after acquiring an additional 7,693 shares during the quarter. KLA accounts for about 1.8% of DMC Group LLC’s holdings, making the stock its 12th largest position. DMC Group LLC’s holdings in KLA were worth $2,583,000 at the end of the most recent reporting period.
Several other hedge funds have also made changes to their positions in the company. McIlrath & Eck LLC boosted its stake in KLA by 6.8% in the 1st quarter. McIlrath & Eck LLC now owns 94 shares of the semiconductor company’s stock worth $139,000 after purchasing an additional 6 shares during the period. Motco raised its stake in KLA by 1.8% during the 4th quarter. Motco now owns 405 shares of the semiconductor company’s stock valued at $492,000 after purchasing an additional 7 shares during the period. Nemes Rush Group LLC raised its stake in KLA by 17.1% during the 4th quarter. Nemes Rush Group LLC now owns 48 shares of the semiconductor company’s stock valued at $58,000 after purchasing an additional 7 shares during the period. SouthState Bank Corp lifted its holdings in shares of KLA by 6.7% in the fourth quarter. SouthState Bank Corp now owns 111 shares of the semiconductor company’s stock valued at $135,000 after purchasing an additional 7 shares in the last quarter. Finally, Root Financial Partners LLC lifted its holdings in shares of KLA by 1.3% in the fourth quarter. Root Financial Partners LLC now owns 796 shares of the semiconductor company’s stock valued at $967,000 after purchasing an additional 10 shares in the last quarter. Hedge funds and other institutional investors own 86.65% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research analysts have recently weighed in on the company. Jefferies Financial Group reiterated a “buy” rating and set a $210.00 price target (up from $200.00) on shares of KLA in a report on Wednesday, July 29th. Stifel Nicolaus set a $250.00 price objective on KLA and gave the stock a “buy” rating in a research note on Wednesday, July 29th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $195.00 target price (down from $220.00) on shares of KLA in a research note on Wednesday, July 29th. Citigroup reiterated a “buy” rating on shares of KLA in a report on Wednesday, June 17th. Finally, TD Cowen reissued a “buy” rating and issued a $260.00 price target (up from $200.00) on shares of KLA in a research report on Thursday, July 9th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and nine have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, KLA has an average rating of “Moderate Buy” and an average price target of $222.22.
Read Our Latest Stock Report on KLA Insider Transactions at KLA In other KLA news, CFO Bren D. Higgins sold 27,701 shares of the business’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $265.69, for a total value of $7,359,878.69. Following the completion of the sale, the chief financial officer directly owned 263,472 shares of the company’s stock, valued at $70,001,875.68. The trade was a 9.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CAO Virendra Kirloskar sold 4,504 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $195.50, for a total transaction of $880,532.00. Following the completion of the sale, the chief accounting officer directly owned 7,972 shares of the company’s stock, valued at $1,558,526. This represents a 36.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 258,533 shares of company stock valued at $55,977,470 in the last ninety days. 91.48% of the stock is currently owned by insiders.
KLA Price Performance KLAC opened at $185.60 on Monday. The stock has a fifty day moving average price of $205.50 and a 200 day moving average price of $188.93. The company has a current ratio of 2.88, a quick ratio of 2.03 and a debt-to-equity ratio of 0.93. KLA Corporation has a 1 year low of $87.83 and a 1 year high of $307.37. The stock has a market cap of $242.50 billion, a price-to-earnings ratio of 50.61, a PEG ratio of 1.65 and a beta of 1.45.
KLA (NASDAQ:KLAC – Get Free Report) last issued its earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.05. KLA had a return on equity of 87.66% and a net margin of 35.57%.The company had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.61 billion. During the same period in the prior year, the firm posted $0.94 EPS. The business’s revenue was up 15.2% compared to the same quarter last year. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. Analysts forecast that KLA Corporation will post 5.42 EPS for the current fiscal year.
KLA Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Monday, August 17th were issued a $0.23 dividend. This is an increase from KLA’s previous quarterly dividend of $0.23. This represents a $0.92 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Monday, August 17th. KLA’s dividend payout ratio is currently 25.07%.
KLA Company Profile (Free Report)
KLA is a provider of process control and yield management solutions for the semiconductor and related microelectronics industries. The company designs and manufactures equipment, software and services used by chipmakers to analyze and control manufacturing processes, detect defects, measure critical dimensions and improve yield across wafer fabrication, photomask and packaging operations. KLA’s offerings are aimed at enabling production of advanced logic, memory, and specialty devices at progressively smaller technology nodes and more complex package structures.
Its product portfolio includes optical and e-beam inspection systems, metrology tools for critical dimension and film measurement, mask and reticle inspection platforms, as well as enterprise software and data analytics that aggregate process data and drive automated process control.
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KLA čeká, že tržby z řízení procesů v oblasti advanced packaging dosáhnou v kalendářním roce 2026 zhruba 1,1 miliardy USD, tedy meziročně více než 70 %. Růst táhne AI, HPC a hybrid bonding.
Key Takeaways KLA expects advanced packaging process-control revenues to top $1.1B in 2026, rising more than 70%.Hybrid bonding, HPC and HBM are increasing inspection and measurement steps, supporting KLA's tool demand.Onto raised its 2026 packaging growth outlook to 80%, while Applied Materials expects over 50% growth. KLA (KLAC - Free Report) is benefiting from accelerating demand for advanced packaging as AI and high-performance computing (HPC) chips require increasingly complex integration of logic and memory. Rising package complexity, higher performance requirements and growing chip values are increasing the need for inspection, metrology and process-control tools. KLA stated that the increasing complexity and value of semiconductor packages, particularly for AI and HPC applications, is driving significant growth in its advanced packaging business. The company’s strong portfolio is strengthening competitive prowess against Onto Innovation (ONTO - Free Report) and Applied Materials (AMAT - Free Report) .
The momentum is already translating into strong revenue growth. KLA expects advanced packaging process-control systems revenues to reach approximately $1.1 billion in calendar 2026, representing growth of more than 70% year over year. The company attributed the expansion to rising process-control intensity as chip designs become more complex and performance specifications become more demanding. Technology transitions such as hybrid bonding are creating additional opportunities. Along with HPC and High-Bandwidth Memory (HBM) adoption, advanced packaging technologies like hybrid bonding are increasing the number of inspection and measurement steps required during manufacturing, supporting demand for KLA's tools.
KLA’s broad portfolio allows the company to capture spending across multiple stages of advanced packaging. KLAC’s wafer inspection and metrology systems help manufacturers detect and monitor defects and process excursions in wafer-level packaging, while chemistry process-control systems monitor materials used in wafer-level and panel-level packaging and IC substrates. Advanced packaging is also benefiting businesses beyond KLA’s core Semiconductor Process Control operations. HPC packaging and integration are driving demand within its Specialty Process and PCB and Component Inspection businesses, with these combined products expected to grow more than 25% in calendar 2026.
Tough Competition Hurts KLAC’s ProspectsOnto Innovation and Applied Materials are well known for their advanced packaging process control offerings.
Onto is emerging as a particularly strong challenger in packaging inspection and metrology. The company raised its 2026 advanced packaging growth outlook to approximately 80%, up from 50% previously, driven by strong demand from HBM manufacturers and outsourced semiconductor assembly and test (OSAT) customers. Onto secured more than $200 million of Dragonfly orders from a single OSAT, with most shipments scheduled for 2027. The company’s Dragonfly inspection business grew 30% sequentially in the second quarter of 2026, supported by 2.5D logic and HBM applications.
Applied Materials is increasingly challenging KLA in process diagnostics and control. Applied Materials expects this business to grow more than 50% in 2026, supported by greater use of e-beam metrology and inspection for increasingly complex structures and new optical-inspection products aimed at gaining application share. Moreover, its EPIC co-innovation strategy gives Applied deeper access to customers developing future chip and packaging architectures, potentially allowing it to secure process-control positions earlier in the technology-development cycle.
KLAC’s Share Price Performance, Valuation & EstimatesKLAC shares have jumped 50.9% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 15.4%.
KLAC Stock’s Performance
Image Source: Zacks Investment Research
KLA stock is overvalued, with a forward 12-month price/sales of 13.05X compared with the broader sector’s 6.32X. KLAC has a Value Score of D.
KLAC Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $5.43 per share, up 7.1% over the past 30 days, suggesting 44.41% growth from the figure reported in fiscal 2026.
KLA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KLA za měsíc po poslední výsledkové zprávě přidala asi 8 % a překonala S&P 500. Firma zároveň zvýšila výhled tržeb na 4 miliardy USD pro první čtvrtletí fiskálního roku 2027.
A month has gone by since the last earnings report for KLA (KLAC - Free Report) . Shares have added about 8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is KLA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
KLAC Q4 Earnings Beat on AI Demand, Revenues Increase Y/YKLA reported fiscal fourth-quarter 2026 non-GAAP earnings of $1.05 per share, up 11.7% year over year, and beat the Zacks Consensus Estimate by 5%.
Revenues increased 15.2% year over year to $3.66 billion and beat the consensus mark by 1.32%. Results benefited from AI infrastructure investment, leading-edge foundry/logic demand and rising process control intensity. Advanced packaging process control revenues are now expected to reach about $1.1 billion in calendar 2026.
KLAC Segment Growth Remains Broad-BasedSemiconductor Process Control revenues were $3.26 billion, accounting for 89% of revenues. The segment grew 13% year over year and 6% sequentially, supported by demand for inspection, metrology and related services across advanced logic, memory and packaging applications.
Specialty Semiconductor Process revenues rose 13% year over year to $160 million but declined 3% sequentially.
PCB and Component Inspection revenues surged 56.5% year over year and 44% sequentially to $241.1 million, reflecting stronger demand tied to high-performance computing packages and integration.
KLA Product Mix Highlights Patterning MomentumWafer Inspection remained the largest product category, generating $1.78 billion, or 49% of revenues. Sales increased 1% year over year and 2% sequentially.
Patterning revenues jumped 61% year over year and 18% sequentially to $728 million, representing 20% of the top line.
Services revenues advanced 17% year over year and 6% sequentially to $820 million, and accounted for 22% of revenues. Management noted that customers are running tools at high utilization, while the growing installed base and contract-heavy service model support visibility. About 80% of service revenues are contract-based.
KLAC End Markets Reflect Logic LeadershipFoundry and logic represented 79% of Semiconductor Process Control systems revenues to semiconductor customers. Memory accounted for the remaining 21%, reflecting demand for high-bandwidth memory and increasingly complex DRAM manufacturing processes.
Geographically, Taiwan generated 31% of total revenues, followed by China at 26% and North America at 18%. Korea contributed 10%, Japan 6%, Europe 5% and the Rest of Asia 4%.
KLA Margins Expand With Operating LeverageThe non-GAAP gross margin was 62.4%, at the upper end of guidance. A favorable service mix and manufacturing scale offset higher memory component costs and tariff pressures. Non-GAAP operating margin reached 43.7%, while incremental operating margin was 59%.
Non-GAAP operating expenses totaled $682 million, including $399 million in research and development (up 13% year over year) and $291.5 million in selling, general and administrative expenses (up 11% year over year).
KLAC Cash Flow Supports Shareholder ReturnsKLAC ended the quarter with $4.90 billion in cash, cash equivalents and marketable securities and $5.89 billion in debt.
Cash flow from operations was $906 million, while free cash flow totaled $817 million. The company returned $876 million to shareholders during the quarter, comprising $571 million in share repurchases and $305 million in dividends.
Over the past 12 months, capital returns totaled $3.3 billion, while the free cash flow margin was 28%.
KLA Issues Strong First-Quarter OutlookFor the first quarter of fiscal 2027, KLA expects revenues of $4 billion (plus or minus $200 million). Non-GAAP diluted earnings are projected at $1.16 per share (plus or minus 10 cents), while non-GAAP gross margin is forecast at 62.5% (plus or minus 1 percentage point).
Foundry/logic is expected to account for about 73% of Semiconductor Process Control systems revenues to semiconductor customers, with memory at roughly 27%. Within memory, DRAM is projected at about 90% and NAND at 10%. Non-GAAP operating expenses are anticipated to be approximately $690 million.
KLA expects second-half calendar 2026 revenues to rise about 20% from the first half as supply capacity improves. Management also raised its calendar 2026 wafer fabrication equipment market outlook, including advanced packaging, to the low-$150 billion range and expects significant growth to continue in calendar 2027.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM ScoresAt this time, KLA has a subpar Growth Score of D, a score with the same score on the momentum front. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise KLA has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
KLA ve čtvrtém fiskálním čtvrtletí zvýšila tržby o 15,21 % na 3,66 miliardy USD a non-GAAP EPS ve výši 1,05 USD překonal odhady. Management zároveň zvedl výhled na rok 2026.
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At $183.99, KLA Corporation (NASDAQ:KLAC | KLAC Price Prediction) looks compelling at current levels. The stock has fallen 14.2% over the past month even as management raised its outlook on the two fastest-growing corners of the semiconductor equipment market, creating a rare dislocation in a stock that rarely goes on sale.
KLA sells the inspection, metrology, and process-control tools that chipmakers rely on to keep yields high as transistor geometries shrink. Management says the company runs at roughly 6x its nearest rival in overall process-control share, giving it a near-monopoly position on a segment that grows faster than the underlying market as complexity rises.
The pullback traces to renewed anxiety about U.S. export controls on China and a broad rotation out of semi-cap names, not to any deterioration in the business. Fiscal Q4 revenue reached $3.66 billion, up 15.21% year over year, with non-GAAP EPS of $1.05 beating expectations, the fifth consecutive beat.
Why the Dip Looks Like an Invitation Management raised its calendar 2026 wafer-equipment market outlook to the low $150 billion range and lifted advanced-packaging systems revenue guidance to roughly $1.1 billion, growth of more than 70% year over year. CEO Rick Wallace said “momentum across our business accelerating in the second half of calendar 2026 and continuing through 2027.”
The service business anchors the model. Services revenue hit $820 million, up 17% year over year, with roughly 80% under contract. Fabs must run inspection tools around the clock regardless of the equipment cycle, which softens downturns. Capital intensity per wafer also rises at each successive node, so process-control spend expands faster than baseline WFE growth. Shares trade at a 34 forward P/E, well below the 50 trailing multiple as earnings scale into guidance.
Where the Bear Case Bites KLA carries real China risk. Management acknowledged that competitors have shifted into fabs in China KLA cannot serve, and any tightening of Bureau of Industry and Security rules would compress the addressable market. Gross margin of 62.4% is absorbing tariff headwinds and memory-pricing pressure that may persist through 2027.
Insider activity adds caution. In August, the CEO, CFO, and multiple executive officers executed sizable open-market disposals, including a 87,568-share sale by Wallace at $198.95. Free cash flow slipped, with Q4 FCF of $817 million, down 23.24% year over year as working capital funds the ramp.
Reasons to Wait KLA is not obviously cheap. A 17.7 price-to-sales ratio and 38 price-to-book leave little margin for a cyclical stumble. With shares up 51.99% year to date and 112.04% over one year, a patient investor could wait for the September quarter print to confirm the accelerating second-half thesis before committing.
What the Numbers Say KLAC trades at $183.99 against a consensus analyst target of $231.78, implying meaningful upside. Coverage skews constructive, with 5 strong buy, 13 buy, 11 hold, and 0 sell ratings across 29 analysts.
KLAC is up 51.99% year to date while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) has moved from 729.46 at the Q4 filing to 765.72 currently. Shares sit well below the 50-day moving average of $220.07 and closer to the 200-day of $168.52.
Why the Selloff Is the Opportunity At $183.99, the setup looks attractive. Q1 FY2027 guidance calls for revenue of $4.0 billion plus or minus $200 million and non-GAAP EPS of $1.16 plus or minus $0.10. Management expects second-half calendar 2026 growth of roughly 20% over the first half, with backlog around $12.5 billion.
The risk/reward at a 34 forward P/E favors buyers. Advanced packaging alone is expected to grow almost two times faster than the market, and HBM plus EUV-driven DRAM intensity should carry process-control demand into calendar 2027. The company returned $876.33 million to shareholders in Q4 and just added a $7 billion buyback authorization.
What would invalidate the thesis: a broader China export-control escalation that cuts guidance, or a September-quarter miss that breaks the beat streak. Absent that, the setup pairs an accelerating end market with a stock trading nearly 40% below its 52-week high of $307.03. Buying the dominant process-control franchise during an AI capex acceleration, at a discount to its own recent multiple, is a research-worthy setup at this price.
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Bank of New York Mellon Corp ve 2. čtvrtletí koupila nový podíl ve společnosti KLA za zhruba 2,522 miliardy USD a držela 0,64 % společnosti. KLA zároveň oznámila EPS 1,05 USD a tržby 3,66 miliardy USD, obojí nad odhady.
Bank of New York Mellon Corp purchased a new position in KLA Corporation (NASDAQ:KLAC – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm purchased 8,360,447 shares of the semiconductor company’s stock, valued at approximately $2,522,430,000. Bank of New York Mellon Corp owned 0.64% of KLA at the end of the most recent reporting period.
A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the stock. McIlrath & Eck LLC grew its stake in KLA by 6.8% in the 1st quarter. McIlrath & Eck LLC now owns 94 shares of the semiconductor company’s stock worth $139,000 after acquiring an additional 6 shares in the last quarter. Motco increased its holdings in KLA by 1.8% during the 4th quarter. Motco now owns 405 shares of the semiconductor company’s stock worth $492,000 after purchasing an additional 7 shares during the period. Nemes Rush Group LLC increased its holdings in KLA by 17.1% during the 4th quarter. Nemes Rush Group LLC now owns 48 shares of the semiconductor company’s stock worth $58,000 after purchasing an additional 7 shares during the period. SouthState Bank Corp raised its position in KLA by 6.7% during the 4th quarter. SouthState Bank Corp now owns 111 shares of the semiconductor company’s stock valued at $135,000 after purchasing an additional 7 shares in the last quarter. Finally, West Michigan Advisors LLC raised its position in KLA by 2.7% during the 4th quarter. West Michigan Advisors LLC now owns 305 shares of the semiconductor company’s stock valued at $371,000 after purchasing an additional 8 shares in the last quarter. Institutional investors own 86.65% of the company’s stock.
Insider Buying and Selling at KLA In other news, CFO Bren D. Higgins sold 27,701 shares of the firm’s stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $265.69, for a total value of $7,359,878.69. Following the completion of the sale, the chief financial officer owned 263,472 shares of the company’s stock, valued at $70,001,875.68. This trade represents a 9.51% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Mary Beth Wilkinson sold 14,392 shares of the business’s stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $285.30, for a total value of $4,106,037.60. Following the transaction, the executive vice president owned 53,367 shares in the company, valued at approximately $15,225,605.10. This trade represents a 21.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 258,533 shares of company stock valued at $55,977,470. Corporate insiders own 91.48% of the company’s stock.
Analysts Set New Price Targets A number of research firms have recently issued reports on KLAC. Susquehanna set a $215.00 price target on KLA and gave the stock a “neutral” rating in a research report on Wednesday, July 29th. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $230.00 price objective on shares of KLA in a research note on Tuesday, July 28th. Barclays reiterated an “overweight” rating and set a $225.00 target price on shares of KLA in a report on Monday, July 20th. Morgan Stanley reissued an “overweight” rating and set a $253.00 target price on shares of KLA in a research report on Wednesday, July 29th. Finally, Citigroup restated a “buy” rating on shares of KLA in a report on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and nine have issued a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $223.70. View Our Latest Stock Report on KLA
KLA Price Performance Shares of KLAC stock opened at $185.86 on Friday. The stock’s 50-day moving average is $221.46 and its 200 day moving average is $186.03. KLA Corporation has a 1-year low of $83.22 and a 1-year high of $307.37. The company has a debt-to-equity ratio of 0.93, a current ratio of 2.88 and a quick ratio of 2.03. The company has a market cap of $242.84 billion, a P/E ratio of 50.68, a PEG ratio of 1.44 and a beta of 1.45.
KLA (NASDAQ:KLAC – Get Free Report) last announced its earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 EPS for the quarter, topping analysts’ consensus estimates of $1.00 by $0.05. The business had revenue of $3.66 billion during the quarter, compared to the consensus estimate of $3.61 billion. KLA had a net margin of 35.57% and a return on equity of 87.66%. The firm’s revenue was up 15.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.94 earnings per share. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. Research analysts predict that KLA Corporation will post 5.42 earnings per share for the current fiscal year.
KLA Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Monday, August 17th will be issued a $0.23 dividend. This is an increase from KLA’s previous quarterly dividend of $0.23. This represents a $0.92 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Monday, August 17th. KLA’s dividend payout ratio is presently 25.07%.
KLA Company Profile (Free Report)
KLA is a provider of process control and yield management solutions for the semiconductor and related microelectronics industries. The company designs and manufactures equipment, software and services used by chipmakers to analyze and control manufacturing processes, detect defects, measure critical dimensions and improve yield across wafer fabrication, photomask and packaging operations. KLA’s offerings are aimed at enabling production of advanced logic, memory, and specialty devices at progressively smaller technology nodes and more complex package structures.
Its product portfolio includes optical and e-beam inspection systems, metrology tools for critical dimension and film measurement, mask and reticle inspection platforms, as well as enterprise software and data analytics that aggregate process data and drive automated process control.
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Abacus FCF Advisors LLC ve 2. čtvrtletí koupila nový podíl v KLA za zhruba 20,8 milionu USD. KLA zároveň oznámila tržby ve výši 3,66 miliardy USD a EPS 1,05 USD, což bylo nad odhady.
Abacus FCF Advisors LLC purchased a new stake in KLA Corporation (NASDAQ:KLAC – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 68,818 shares of the semiconductor company’s stock, valued at approximately $20,763,000. KLA makes up about 3.8% of Abacus FCF Advisors LLC’s investment portfolio, making the stock its 3rd largest holding.
Several other large investors have also modified their holdings of the business. Bank of New York Mellon Corp acquired a new stake in shares of KLA during the second quarter valued at $2,522,430,000. Handelsbanken Fonder AB boosted its position in KLA by 978.2% during the second quarter. Handelsbanken Fonder AB now owns 858,984 shares of the semiconductor company’s stock worth $259,164,000 after acquiring an additional 779,317 shares during the last quarter. Wedge Capital Management L L P NC grew its stake in KLA by 781.5% in the 2nd quarter. Wedge Capital Management L L P NC now owns 359,277 shares of the semiconductor company’s stock worth $108,397,000 after acquiring an additional 318,520 shares during the period. Bessemer Group Inc. grew its stake in KLA by 0.7% in the 1st quarter. Bessemer Group Inc. now owns 180,279 shares of the semiconductor company’s stock worth $265,444,000 after acquiring an additional 1,291 shares during the period. Finally, Clal Insurance Enterprises Holdings Ltd raised its holdings in KLA by 151.2% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 116,292 shares of the semiconductor company’s stock valued at $171,230,000 after acquiring an additional 70,000 shares during the last quarter. 86.65% of the stock is currently owned by institutional investors and hedge funds.
KLA News Roundup Here are the key news stories impacting KLA this week:
Positive Sentiment: Wall Street analysts remain broadly optimistic on KLA, with Wells Fargo maintaining an “Overweight” rating. The company’s latest quarterly results also exceeded consensus estimates, with revenue of $3.66 billion and earnings of $1.05 per share. Is KLA a Buy as Wall Street Analysts Look Optimistic? Positive Sentiment: Institutional interest was mixed but included significant second-quarter additions by Invesco, Norges Bank, Capital International Investors and JPMorgan, potentially providing longer-term support for KLAC. KLA Falls as Investors Digest Guidance and Sector Pressure Insider Buying and Selling at KLA In related news, EVP Mary Beth Wilkinson sold 13,802 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $195.50, for a total transaction of $2,698,291.00. Following the completion of the sale, the executive vice president directly owned 22,110 shares of the company’s stock, valued at approximately $4,322,505. This trade represents a 38.43% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Bren D. Higgins sold 27,701 shares of the business’s stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $265.69, for a total value of $7,359,878.69. Following the completion of the transaction, the chief financial officer owned 263,472 shares in the company, valued at approximately $70,001,875.68. This trade represents a 9.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 258,533 shares of company stock worth $55,977,470. 91.48% of the stock is currently owned by insiders. Analyst Ratings Changes A number of equities research analysts have recently commented on KLAC shares. New Street Research lifted their price objective on KLA from $146.00 to $177.00 and gave the company a “neutral” rating in a research report on Wednesday, April 29th. Scotiabank set a $200.00 target price on KLA in a research report on Wednesday, June 10th. Oppenheimer reissued an “outperform” rating and issued a $260.00 price target (up from $200.00) on shares of KLA in a research note on Thursday, July 16th. Stifel Nicolaus set a $250.00 price target on KLA and gave the company a “buy” rating in a report on Wednesday, July 29th. Finally, Cantor Fitzgerald restated an “overweight” rating and set a $325.00 price objective on shares of KLA in a report on Wednesday, July 29th. One research analyst has rated the stock with a Strong Buy rating, nineteen have given a Buy rating and nine have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $223.70.
Check Out Our Latest Stock Analysis on KLAC
KLA Stock Performance Shares of KLAC stock opened at $187.27 on Thursday. The company has a current ratio of 2.88, a quick ratio of 2.03 and a debt-to-equity ratio of 0.93. The company has a market cap of $244.68 billion, a PE ratio of 51.07, a P/E/G ratio of 1.50 and a beta of 1.45. The company’s fifty day simple moving average is $222.57 and its 200-day simple moving average is $185.73. KLA Corporation has a 52 week low of $83.22 and a 52 week high of $307.37.
KLA (NASDAQ:KLAC – Get Free Report) last announced its quarterly earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 earnings per share for the quarter, topping analysts’ consensus estimates of $1.00 by $0.05. KLA had a net margin of 35.57% and a return on equity of 87.66%. The firm had revenue of $3.66 billion during the quarter, compared to analysts’ expectations of $3.61 billion. During the same period in the prior year, the company earned $0.94 EPS. The firm’s revenue was up 15.2% on a year-over-year basis. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. As a group, equities research analysts anticipate that KLA Corporation will post 5.42 EPS for the current year.
KLA Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, August 17th will be paid a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 0.5%. This is a boost from KLA’s previous quarterly dividend of $0.23. The ex-dividend date is Monday, August 17th. KLA’s payout ratio is currently 25.07%.
About KLA (Free Report)
KLA is a provider of process control and yield management solutions for the semiconductor and related microelectronics industries. The company designs and manufactures equipment, software and services used by chipmakers to analyze and control manufacturing processes, detect defects, measure critical dimensions and improve yield across wafer fabrication, photomask and packaging operations. KLA’s offerings are aimed at enabling production of advanced logic, memory, and specialty devices at progressively smaller technology nodes and more complex package structures.
Its product portfolio includes optical and e-beam inspection systems, metrology tools for critical dimension and film measurement, mask and reticle inspection platforms, as well as enterprise software and data analytics that aggregate process data and drive automated process control.
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KLA za měsíc oslabila o 9,3 % kvůli tlaku na marže, problémům v dodávkách a rizikům při rozšiřování kapacit. Firma ale dál těží ze silných investic do AI a očekává růst tržeb.
Key Takeaways KLA shares fell 9.3% in a month amid margin pressure, supply constraints and execution risks.AI spending, HBM and advanced packaging are expected to drive strong KLA growth through 2027.KLA targets about $26 billion in 2030 revenue as process-control intensity and market share rise.
KLA (KLAC - Free Report) shares dropped 9.3% in the past month, underperforming the broader Zacks Computer and Technology sector’s return of 1.4%. The underperformance can be attributed to investor concerns around near-term margins, execution risks and elevated expectations. The company expects higher memory-component costs and tariffs to keep gross margin under pressure, with memory pricing pressure likely to persist through 2027. Shortages in certain long-lead-time components as well as rising execution risk related to KLAC’s capacity expansion initiatives to meet high demand are concerns. KLA also faces significant geopolitical and regulatory uncertainty related to China, tariffs and broader trade restrictions.
The company’s shares have underperformed its peers, including Entegris (ENTG - Free Report) and Lam Research (LRCX - Free Report) , but outperformed MKS (MKSI - Free Report) over the past month. Entegris shares have returned 14.5% over the same time frame while Lam Research and MKS dropped 4.7% and 13.5%, respectively. So, what should investors do with KLAC shares? Let’s find out.
KLAC Stock’s Price Performance
Image Source: Zacks Investment Research
KLA Shares Trade at PremiumKLAC shares are trading at a premium, as suggested by the Value Score of D.
In terms of the forward 12-month price/sales, KLAC is trading at 14.92X, higher than the broader sector’s 6.55X. KLAC shares are trading at a premium compared with MKS, Entegris, and Lam Research, shares of which are trading at 3.77X, 6.41X, and 11.76X, respectively.
KLAC Stock’s Valuation
Image Source: Zacks Investment Research
KLAC’s Prospects Ride on Strong AI DemandKLA’s growth outlook remains strong for the remainder of calendar 2026 and into 2027, supported primarily by accelerating AI infrastructure spending, leading-edge foundry/logic investment, high-bandwidth memory (HBM) adoption and advanced packaging. The company expects second-half calendar 2026 revenues to grow approximately 20% from the first half as additional supply capacity becomes available, while its September-quarter (first-quarter fiscal 2027) revenue guidance of $4 billion (plus or minus $200 million) at the midpoint implies another meaningful sequential increase.
Advanced packaging is emerging as a strong contributor, with KLA forecasting approximately $1.1 billion of process-control systems revenue in calendar 2026, up more than 70% year over year (which increases from prior guidance of high 50% growth). Specialty Process and PCB/Component Inspection businesses are expected to grow more than 25%. Services business is expected to provide another source of momentum as higher system shipments enlarge the installed base. In the fourth quarter of fiscal 2026, Services revenues increased 17% year over year to $820 million. The company also sees broad-based investment across leading-edge logic, DRAM, HBM, NAND and new greenfield fabs supporting significant growth in 2027.
KLA should benefit from structurally rising process-control intensity as semiconductor devices become more complex and valuable. Faster product cycles, more stringent performance specifications, greater design variability, higher-value wafers and masks, increased EUV adoption, HBM and advanced packaging all require more inspection, metrology and yield-management capability.
KLA’s 2030 framework assumes the process-control market will grow faster than overall wafer-fabrication equipment, supported by intensity and market-share gains at the leading edge, advanced packaging and a greater than 150-basis-point increase in KLA’s share of WFE. The company targets revenues of about $26 billion (plus or minus $2.5 billion) by 2030, representing an estimated 13-17% CAGR, while Services is expected to grow 13-15%.
KLAC’s Earnings Estimate Revision Shows Rising TrendThe Zacks Consensus Estimate for first-quarter fiscal 2027 revenues is currently pegged at $4.03 billion, suggesting 25.42% growth from the figure reported in the year-ago quarter. The consensus mark for earnings is currently pegged at $1.17 per share, up four cents over the past 30 days. The figure suggests 32.95% growth from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for fiscal 2027 revenues is currently pegged at $17.85 billion, suggesting 31.46% growth from the figure reported in fiscal 2026. The consensus mark for earnings is currently pegged at $5.43 per share, up 7.7% over the past 30 days. The figure suggests 44.41% growth from the figure reported in fiscal 2026.
ConclusionKLA’s recent share-price weakness appears to offer a potentially attractive entry point for investors willing to look beyond near-term margin and supply-chain pressures. The company is benefiting from strong AI-driven semiconductor spending, rising process-control intensity, expanding HBM and advanced-packaging adoption, and a growing services base. Encouragingly, earnings estimates for both the fiscal first quarter and fiscal 2027 have moved higher, reinforcing confidence in the company’s growth trajectory. Although KLAC’s premium valuation warrants some caution, its market leadership, improving demand visibility and ambitious 2030 growth targets support a favorable long-term outlook. Investors may consider using the recent pullback as an opportunity to accumulate the stock for its compelling growth prospects.
KLA currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
KLA za měsíc klesla o 10,74 % kvůli obavám z exportních omezení do Číny, přesto má za sebou překonání očekávání a silný výhled do budoucna. Cantor Fitzgerald vidí cílovou cenu 325 USD, tedy zhruba 66% růst.
KLA Corporation (NASDAQ:KLAC | KLAC Price Prediction) trades at $195.78 against a consensus 12-month analyst target of $230.85, implying roughly 17.9% of upside. One Wall Street pro thinks that gap should be nearly four times wider.
KLA is the dominant supplier of semiconductor process control and yield management systems. Its inspection and metrology tools sit between chipmakers and shippable wafers, making it a leveraged play on the AI infrastructure buildout across foundry/logic, memory, and advanced packaging.
KLA just posted a clean beat and strong forward guidance, yet the stock sold off hard. That combination is what put a $325 target on the table.
An Export-Rules Panic Overwhelmed a Clean Earnings Beat The 10.74% one-month drop traces to renewed worries about U.S. Bureau of Industry and Security export restrictions on sales into China, where KLA generated roughly $4.04 billion in the last fiscal year, approximately 30% of annual revenue.
Management guided Q1 FY2027 revenue to $4.0 billion plus or minus $200 million with non-GAAP EPS of $1.16 plus or minus $0.10, implying sequential acceleration but landing below several sell-side models. Profit-taking on a big YTD run added fuel. Insider selling drew attention as well, roughly $34 million across multiple officers in recent weeks, though disclosed under Rule 10b5-1 plans adopted February 2, 2026.
Why Cantor Fitzgerald Sees Roughly 66% Upside From Here The bull case rests on process control intensity at leading-edge nodes. Cantor Fitzgerald’s C.J. Muse holds an Overweight rating with a $325 price target, implying about 66% upside from current levels. As logic scales to 2nm and below with Gate-All-Around transistors and Backside Power Delivery Networks, yield management becomes exponentially harder, and KLA’s optical and electron-beam inspection tools become indispensable. That drives a structural increase in KLA’s share of total Wafer Fabrication Equipment spending.
The second pillar is advanced packaging and High-Bandwidth Memory stacking. Multi-chiplet architectures and HBM3e/HBM4 stacking require ultra-precise wafer screening before die assembly. Muse frames KLA as a near-monopoly in high-end process control for heterogeneous integration, positioning it as a tollbooth on the AI hardware buildout he expects to push the industry toward a $3.5 trillion run-rate.
The broader Street is friendly but less aggressive. Of 29 analysts, 5 rate KLAC Strong Buy, 13 Buy, 10 Hold, and 1 Sell. Zacks upgraded the name to Strong Buy on August 1, 2026. The fifth consecutive EPS beat gives the thesis a live catalyst: the Q1 FY27 report needs to clear the guided $4.0 billion midpoint to force sell-side revisions higher toward Cantor’s outlier.
KLAC Fell Harder Than Its Peers The semi-cap group all pulled back last month, but KLAC took the worst of it.
Applied Materials (NASDAQ:AMAT) trades at $527.48 against a $629.09 target, about 19% upside. It fell 4.87% over the past month. Sentiment is firmly positive with 32 Buy or Strong Buy ratings against 7 Holds.
Lam Research (NASDAQ:LRCX) sits at $305.77 with a $368.13 target, roughly 20% upside. Down 6.24% in the last month. 29 Buy or Strong Buy calls versus 6 Holds, with recent guidance well received.
Onto Innovation (NYSE:ONTO) trades at $268.70 versus a $369.60 target, about 38% upside, the largest consensus setup in the group. Down 4.01% for the month, with all 10 covering analysts at Buy or Strong Buy.
On consensus math, ONTO screens with the biggest implied upside. But KLA is the only name where a top-tier analyst has staked out a target implying 60%-plus upside, so the bull case has meaningfully more room to run if the AI capex thesis holds.
A 59% YTD Run That Just Gave Some Back KLAC is down 10.74% over one month, still up 59.43% year to date, and up 118.92% over one year. The S&P 500 is up 12.71% YTD, so KLAC remains well ahead of the index even after the drawdown. Twenty-nine analysts cover the stock, with a consensus 12-month target of $230.85.
Valuation reflects the run: trailing P/E of 53x, forward P/E of 36x, revenue TTM of $13.58 billion, and diluted EPS TTM of $3.61. FY26 free cash flow was $3.77 billion, and the company returned $2.29 billion via buybacks.
The Setup The bull case strengthens if the Q1 FY27 report clears the $4.0 billion revenue midpoint and management reiterates AI capex commentary. That confirms the buildout Muse is betting on and would force the sell-side toward the $325 outlier. Advanced packaging and HBM demand look durable, and five straight EPS beats show the operating model is working.
The bear case takes over if U.S. export rules on China tighten further. China is roughly 30% of revenue, and even a partial reset would knock estimates down quickly. A 53x trailing multiple leaves no margin for error if AI capex momentum slows.
The 66%-to-70% upside case requires China exposure to hold and AI capex to accelerate, though the sharp reset has already priced in real fear. The skew looks favorable on the current setup for investors comfortable with the China risk.
Contact [email protected] for any questions or corrections.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The KLA Corporation (NASDAQ: KLAC) Board of Directors today declared a quarterly cash dividend of $0.23 per share on its common stock, payable on Sept. 1, 2026 to KLA shareholders of record as of the close of business on Aug. 17, 2026.
About KLA:
KLA Corporation ("KLA") develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging and printed circuit boards. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward. Investors and others should note that KLA announces material financial information including SEC filings, press releases, public earnings calls and conference webcasts using an investor relations website (ir.kla.com). Additional information may be found at: www.kla.com.
KLA očekává, že tržby z řízení procesů výroby pro advanced packaging dosáhnou v kalendářním roce 2026 asi 1,1 miliardy USD, tedy více než 70% meziroční růst. Firma zároveň očekává zrychlení růstu ve druhé polovině roku 2026 a pokračování do roku 2027.
Key Takeaways KLA expects advanced packaging process control revenue to reach $1.1B in 2026, up more than 70%.AI chiplets, 2.5D/3D integration and hybrid bonding are increasing process control intensity.KLA expects revenue growth to accelerate in the second half of 2026 and continue into 2027. KLA (KLAC - Free Report) is benefiting from the rapid adoption of advanced packaging, which has become a key enabler of AI infrastructure. As AI processors become more complex, the requirement for advanced packaging technologies such as chiplets, 2.5D/3D integration and hybrid bonding is increasing rapidly. These technologies require significantly higher process control intensity, creating strong demand for KLA’s inspection, metrology and yield-management solutions.
Advanced packaging roadmaps are increasingly adopting sophisticated wafer front-end manufacturing techniques, requiring more front-end process control capabilities, according to KLA management. Driven by the industry’s most comprehensive process control portfolio, KLA expects its Advanced Packaging process control systems revenue to reach approximately $1.1 billion in calendar 2026. This represents more than 70% year-over-year growth, well above KLAC’s previous expectation of high-50% growth and nearly twice the growth rate of the advanced packaging market.
Beyond its core Semiconductor Process Control business, advanced packaging is also driving growth in KLA’s Specialty Process, PCB and Component Inspection businesses. High-performance computing packages and increasingly complex AI chip packaging are boosting demand for these products. KLA expects these combined businesses to grow more than 25% in calendar 2026, reflecting the benefits of the Orbotech acquisition.
KLA sees advanced packaging as a long-term growth engine. The company raised its outlook for the wafer equipment market, including advanced packaging, to approximately the low-$150 billion range in calendar 2026 (up from prior expectation of more than $140 billion) and continues to expect significant industry growth in calendar 2027, driven by investments across leading-edge logic, DRAM, HBM, NAND and advanced packaging capacity. KLAC expects technologies such as hybrid bonding, together with AI computing, HBM and EUV adoption, to increase process control intensity across the semiconductor ecosystem. This will support accelerating revenue growth in the second half of 2026 and continued momentum into 2027.
Tough Competition Hurts KLAC’s ProspectsKLAC is facing stiff competition from the likes of Onto Innovation (ONTO - Free Report) and Applied Materials (AMAT - Free Report) , both of which are well known for their advanced packaging process control offerings.
Onto Innovation’s expanding inspection and metrology portfolio for AI-driven packaging applications is a key catalyst. ONTO expects advanced packaging revenues to grow more than 50% in 2026, supported by qualification of its Dragonfly G5 inspection platform at a leading 2.5D logic customer, growing adoption of its 3DI metrology systems for shrinking micro-bump inspection and JetStep lithography wins for panel-level packaging. Onto Innovation also highlighted a pipeline of more than 15 applications across over 10 customers, positioning it to gain market share in both existing and new packaging applications.
Applied Materials’ advanced packaging technology portfolio extends beyond process control into deposition, etch, hybrid bonding and packaging integration. AMAT expects advanced packaging revenue to increase more than 50% in calendar 2026, driven by AI-related demand for high-bandwidth memory (HBM) and 3D chiplet architectures. Applied Materials has invested heavily in hybrid bonding, panel-level packaging, glass substrates and packaging inspection technologies, including the planned NEXX acquisition and X-ray capabilities, while emphasizing leadership in HBM packaging equipment.
KLAC’s Share Price Performance, Valuation & EstimatesKLAC shares have jumped 40% year to date, outperforming the broader Zacks Computer and Technology sector’s return of 8.9%.
KLAC Stock’s Performance
Image Source: Zacks Investment Research
KLA stock is overvalued, with a forward 12-month price/sales of 12.68X compared with the broader sector’s 6.13X. KLAC has a Value Score of F.
KLAC Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2027 earnings is pegged at $5.07 per share, up 2.5% over the past 30 days, suggesting 34.84% growth from the figure reported in fiscal 2026.
KLA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analytik Chris Caso tvrdí, že nadbytek čipů je nejdříve v roce 2028 nepravděpodobný, protože kapacity továren i datacenter nestačí. Nejvíce omezené zůstávají paměti DRAM a HBM.
Wolfe Research Senior Analyst Chris Caso used a CNBC appearance on July 29 to defend the semiconductor sector after a sharp pullback, arguing that the physical infrastructure needed to trigger an oversupply cycle simply does not exist yet. The SOXX index has pulled back 25% from its recent high following SK Hynix’s earnings report, but he believes the classic chip-cycle bust remains years away because fabs and data centers cannot be conjured up on demand.
Caso argued: “You just don’t have the physical space to make the semiconductors right now. So it’s really hard to see a situation right now where we’re in oversupply.” He added that “the current up cycle requires the building of brand new buildings that take a long time to build, and even the potential of getting to that oversupply situation is really 2028 at the very earliest.“
NVIDIA and AMD Show AI Demand Is Still Accelerating Caso pointed to TSMC being completely sold out, with no physical space to make semiconductors. That constraint radiates through the entire supply chain, from advanced logic customers like NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Advanced Micro Devices (NASDAQ:AMD) down through memory and storage.
NVIDIA’s Q1 FY2027 results underscore the demand backdrop. Revenue reached $81.61 billion, up 85.2% year over year, with Data Center at $75.25 billion and networking up 199%. Management guided Q2 revenue to $91.0 billion and disclosed total supply-related commitments of $119.0 billion. CEO Jensen Huang described the moment as “the largest infrastructure expansion in human history.”
AMD’s Q1 2026 earnings report reinforced the same theme. Revenue came in at $10.25 billion, up 37.9%, with Data Center revenue of $5.78 billion, up 57%. CEO Lisa Su said “leading customer forecasts exceeding our initial expectations” for the MI450 series.
Memory Supply Is Where the Shortage Looks Most Severe Caso was blunt on DRAM and HBM: “The memory suppliers are severely supply constrained. They can’t produce more, which is the very reason why we’re bullish on memory.” He noted Micron reported about a month before SK Hynix, with one of the best reports in company history.
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Micron Technology (NASDAQ:MU) posted Q3 FY2026 revenue of $41.46 billion, up 345.7% year over year, with GAAP gross margin of 84.6% and Q4 guidance of $50.0 billion in revenue at roughly 86% gross margin. CEO Sanjay Mehrotra highlighted that multi-year Strategic Customer Agreements now anchor the order book, with HBM4E volume production expected in calendar 2027.
Chip Equipment and Storage Stocks Confirm the Capacity Crunch KLA Corporation (NASDAQ:KLAC) sits at the front of any capacity buildout. Q4 FY2026 revenue was $3.66 billion, up 15.2%, with Q1 FY2027 guided to $4.0 billion. CEO Rick Wallace said momentum is “accelerating in the second half of calendar 2026 and continuing through 2027.” Shares still fell 6.18% on July 28 as investors focused on valuation.
Storage tells the same story. Western Digital (NASDAQ:WDC) reported Q3 FY2026 revenue of $3.34 billion, up 45.5%, with non-GAAP gross margin crossing 50.5%. CEO Irving Tan noted that “virtually every AI workload, from training, inference, agentic AI to physical AI, creates data that is stored persistently and cost-efficiently on HDDs.”
NVIDIA Is Using Its Balance Sheet to Protect the AI Supply Chain Caso also defended NVIDIA’s supply-chain investments. He cited seven tranches of bonds issued in June at a weighted-average spread of less than 0.5% and noted that NVIDIA backstopped $500 billion to SK Hynix and $250 billion to OpenAI. His view: “I’m pretty comfortable with providing equity and such to shore up the supply chain because the capital is required for your customers to expand capacity.”
If Caso’s capacity math is right, the recent semiconductor selloff reflects a shift in sentiment rather than a fundamental change in the underlying cycle. Investors should watch fab construction timelines, HBM4E qualification progress and hyperscaler capex commentary for the first concrete signals that meaningful new supply could finally arrive in 2028. Until then, the physical constraints supporting the semiconductor cycle appear to remain firmly in place.
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KLA Corp překonala odhad výnosů za 4. čtvrtletí, když vykázala tržby 3,66 miliardy USD, a očekává výhled tržeb za 1. čtvrtletí na 4 miliardy USD plus minus 200 milionů dolarů, tedy nad očekáváním Wall Street, díky pokračujícím investicím do AI. Akcie však v prodlouženém obchodování klesly o 9 %.
July 28 (Reuters) - KLA Corp (KLAC.O), opens new tab on Tuesday beat fourth-quarter revenue estimates and forecast first-quarter revenue above Wall Street expectations, but its shares fell 9% in extended trading as the results failed to meet investor expectations.
The company's shares have risen more than 57% so far this year, driven by higher demand from foundries and memory-chip makers expanding capacity to support the data-intensive requirements of generative AI applications.
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KLA provides process control and yield management systems, which are critical for identifying and correcting defects during the semiconductor manufacturing process. Its tools become more vital as chipmakers move to smaller and more complex production nodes.
Here are some details:
KLA's results and forecast were better than expected, but were not eye-popping by any means, CFRA analyst Brooks Idlet said.
"In the midst of the past few days' selling pressure, investors are hoping for blowout results that are strong enough to shake the market's bearish narrative around hyperscaler spending sustainability and emerging Chinese competition," Idlet added.
KLA expects first-quarter revenue of $4 billion, plus or minus $200 million, ahead of analysts' average estimate of $3.92 billion, according to data compiled by LSEG.
It forecast adjusted earnings of $1.16 per share, plus or minus 10 cents, for the quarter, also ahead of an estimate of $1.14.
KLA sees momentum across its business accelerating in the second half of 2026 and continuing through 2027, CEO Rick Wallace said, adding that the AI infrastructure buildout is also driving new growth opportunities in advanced packaging for the company.
The semiconductor equipment maker's fourth-quarter revenue grew 15.1% to $3.66 billion, beating estimates of $3.60 billion.
Adjusted profit came in at $1.05 per share, compared with an estimate of $1.
Reporting by Juby Babu in Mexico City; Editing by Shailesh Kuber
Our Standards: The Thomson Reuters Trust Principles., opens new tab
KLA těží z AI investic v čipech a podle společnosti by měl trh WFE dosáhnout přibližně 140 miliard USD v roce 2026. Podíl KLA v procesní kontrole vzrostl v roce 2025 na 58 %.
Key Takeaways KLA is positioned to outgrow the WFE market as AI boosts foundry, logic and memory investments.KLA projects WFE spending to reach about $140B in 2026 and roughly $215B, plus or minus $20B, by 2030.KLA lifted its process-control share to 58% in 2025, gaining 360 basis points since 2021. KLA Corporation (KLAC - Free Report) is benefiting from a new wave of artificial intelligence (AI)-driven semiconductor investment and appears well positioned to continue outperforming the broader wafer fabrication equipment (WFE) market as the current investment cycle matures. While semiconductor equipment demand remains supported by AI infrastructure spending, the company also has structural growth drivers that could allow it to grow faster than the overall WFE market through 2027 and beyond.
The investment cycle is becoming broader than previous upcycles. AI deployment is driving spending across leading-edge foundry and logic capacity, while high-bandwidth memory and advanced DRAM are supporting memory investments. Rather than depending on a single end market, KLA is gaining from demand across foundry, logic and memory, all of which require increasingly sophisticated inspection and metrology solutions. The company expects these trends to support continued expansion in WFE spending. KLA projects the WFE market to reach approximately $140 billion in calendar 2026. Looking further ahead, it expects the market to expand to roughly $215 billion, plus or minus $20 billion, by 2030, representing growth that outpaces the broader semiconductor industry.
KLA’s ability to outgrow WFE rests on its stronger exposure to process control, not just higher industry spending. As chip designs become more complex, customers need more inspection, metrology and yield-management tools across development, ramp and high-volume manufacturing. KLA’s updated 2030 framework assumes the process-control market will grow faster than overall WFE, supported by advanced packaging, services growth of 13-15% annually and more than 150 basis points of additional WFE share gains over time.
KLA already enters this cycle from a position of strength. According to third-party industry data highlighted during Investor Day, the company increased its semiconductor process-control market share to 58% in 2025, up 360 basis points since 2021. The gains were driven by leadership in optical inspection, e-beam inspection, mask inspection and advanced wafer-level packaging process control, where KLA also achieved the industry’s top market position.
KLA’s expanding process-control intensity, rising market share, growing advanced packaging exposure and resilient services business provide multiple avenues for growth beyond industry averages. If AI-driven semiconductor complexity continues increasing as expected, the company's differentiated technology portfolio could allow it to keep outgrowing the WFE market through 2027 and remain one of the industry's strongest long-term beneficiaries.
How Do Competitors Compare With KLA's WFE Growth Opportunity?KLA's closest process-control peers, Onto Innovation (ONTO - Free Report) and Nova Ltd. (NVMI - Free Report) , are also benefiting from the AI-driven semiconductor investment cycle and expect to outgrow the broader wafer fabrication equipment (WFE) market. However, their growth strategies remain more focused on specific technology niches, while KLA benefits from a broader process-control franchise spanning inspection, metrology, advanced packaging and services.
Onto Innovation is capitalizing on rising demand for advanced packaging and advanced-node process control, supported by growing adoption of its Dragonfly G5 inspection platform and Atlas G6 metrology systems. ONTO expects advanced packaging revenue to grow more than 50% in 2026 and anticipates its advanced-node business will expand faster than the overall WFE market, driven by AI-related investments in logic, DRAM and high-bandwidth memory. Management also expects to continue outgrowing WFE into 2027 as new products and customer wins gain traction.
Nova is similarly benefiting from rising AI-driven investments across logic, memory and advanced packaging. The company reported record demand for advanced DRAM, gate-all-around applications and advanced packaging, while highlighting that growing manufacturing complexity is increasing process-control and metrology intensity. Nova expects to outperform mid-teen WFE growth, supported by market-share gains, broader customer adoption and expanding exposure to advanced packaging and hybrid bonding technologies.
KLA’s Stock Price Performance, Valuation & EstimatesShares of KLA have surged 177.6% over the past year, outperforming the industry, as shown below.
KLAC One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, KLA trades at a forward price-to-earnings (P/E) multiple of 50.18, significantly above the industry’s average, as shown below.
KLAC’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KLA’s fiscal 2026 and 2027 earnings per share (EPS) implies a year-over-year increase of 11.4% and 34.3%, respectively. The EPS estimates for fiscal 2026 and 2027 have risen in the past 60 days, respectively.
EPS Trend of KLAC Stock
Image Source: Zacks Investment Research
KLAC stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways KLA's fiscal Q3 revenues rose 11% to a record $3.42B as AI drove stronger process control demand.Advanced packaging process control revenues are expected to reach about $1B in calendar 2026.Services revenues rose 16% to $775M, adding recurring cash flows that support shareholder returns. Artificial intelligence is reshaping semiconductor manufacturing, and KLA Corporation (KLAC - Free Report) appears to be one of the biggest beneficiaries. While AI demand is boosting chipmakers' investments in advanced logic and high-bandwidth memory (HBM), it is also increasing the need for sophisticated process control solutions that improve yield, reliability and manufacturing efficiency.
KLA's third-quarter fiscal 2026 results reflected this trend. Revenues rose 11% year over year to a record $3.42 billion, while non-GAAP earnings per share (EPS) increased to $9.40. Management emphasized that AI is now a core driver of the company's business, supporting stronger demand across foundry, memory and advanced packaging. The company also raised its expectations for advanced packaging process control revenues to roughly $1 billion in calendar year 2026 from about $635 million in 2025, well above its previous outlook. AI-enabled chip architectures and increasingly complex packaging technologies continue to expand KLA's addressable market.
Beyond wafer inspection, KLA is benefiting from rising process control intensity as chip designs become more complex. Larger die sizes, faster product cycles, higher-value wafers and the rapid adoption of HBM require greater inspection and metrology throughout the manufacturing process. These structural changes are helping KLA gain market share while strengthening its competitive position.
The company's services business adds another layer of stability. Services revenues increased 16% year over year to $775 million, providing recurring cash flows that support shareholder returns. Management also expects quarter-to-quarter revenue growth throughout calendar year 2026 and believes the wafer equipment market will strengthen further in 2027.
Although higher DRAM costs and tariff-related pressures remain margin headwinds, KLA's technology leadership, expanding process control portfolio and growing exposure to AI infrastructure spending position it as one of the clearest long-term winners from the semiconductor industry's AI investment cycle.
How Competitors Are Positioned Against KLA StockTwo of KLA's closest competitors are Onto Innovation (ONTO - Free Report) and Nova Ltd. (NVMI - Free Report) , both of which are benefiting from AI-driven semiconductor investments but remain more specialized than KLA.
Onto has built a strong position in advanced packaging inspection, optical metrology and lithography process control, areas seeing rising demand as AI chips become more complex. Onto continues expanding its advanced packaging portfolio and is gaining from growing adoption of chiplet architectures. However, Onto has a narrower product portfolio and significantly smaller service business, limiting its ability to match KLA's scale and broad process control ecosystem.
Nova focuses on metrology solutions that help semiconductor manufacturers improve yield at advanced process nodes. Nova is benefiting from increasing process complexity in leading-edge logic and high-bandwidth memory production, while Nova continues investing in materials metrology and AI-enabled analytics. Nevertheless, KLA maintains a wider inspection and metrology portfolio, stronger market leadership, greater exposure to advanced packaging and a much larger recurring services business, giving it a competitive advantage as AI infrastructure spending accelerates.
KLA’s Stock Price Performance, Valuation & EstimatesShares of KLA have surged 113.6% year to date (YTD), outperforming the industry, as shown below.
KLAC YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, KLA trades at a forward price-to-earnings (P/E) multiple of 52.71, significantly above the industry’s average, as shown below.
KLAC’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KLA’s fiscal 2026 and 2027 earnings per share (EPS) implies a year-over-year increase of 11.4% and 34.1%, respectively. The EPS estimates for fiscal 2026 and 2027 have risen in the past 60 days, respectively.
EPS Trend of KLAC Stock
Image Source: Zacks Investment Research
KLAC stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
