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Valued at a market cap of $111.7 billion, KLA Corporation (KLAC) designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries. The Milpitas, California-based company develops advanced inspection, metrology, and analytics systems that help chipmakers detect defects, measure critical parameters, and optimize manufacturing processes.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and KLAC fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the semiconductor equipment & materials industry. The company excels in AI-driven analytics and machine learning integration, setting it apart in precision manufacturing. Its most significant strength is its technological leadership in advanced inspection and metrology tools, backed by thousands of patents and continuous R&D investment.
This tech giant has dipped 11.8% from its 52-week high of $959.26, reached on Aug. 14. Shares of KLAC have gained 11% over the past three months, slightly underperforming the Technology Select Sector SPDR Fund’s (XLK) 11.5% return during the same time frame.
Moreover, in the longer term, KLAC has gained 3.3% over the past 52 weeks, lagging behind XLK's 17.9% uptick over the same time period. Nonetheless, on a YTD basis, shares of KLAC are up 34.3%, outpacing XLK’s 11.7% rise.
To confirm its recent bearish trend, KLAC has been trading below its 50-day moving average since mid-August. However, it is trading above its 200-day moving average since early May.
On Jul. 31, KLAC reported strong Q4 results, driven by broad-based growth across all of its reportable segments. The company’s overall revenue improved 23.6% year-over-year to $3.2 billion, surpassing consensus estimates by 2.9%. Moreover, its adjusted EPS of $9.38 advanced 42.1% from the year-ago quarter and came in 10% above the analyst expectations. However, despite delivering an upbeat performance, its shares plunged 5% after the earnings release.
KLAC has considerably outpaced its rival, Applied Materials, Inc. (AMAT), which declined 20.1% over the past 52 weeks and 3.1% on a YTD basis.
Despite KLAC’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 26 analysts covering it, and the mean price target of $930.62 suggests a 10% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
