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KLA Corporation (KLAC), headquartered in Milpitas, California, designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. With a market cap of $100.1 billion, the company offers surface profilers, nanomechanical testers, chips, and semiconductor assembly solutions.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and KLAC perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the semiconductor equipment & materials industry. KLAC is a market leader in semiconductor process control, known for innovative solutions that drive high volume production efficiency. With a strong financial performance despite economic challenges, the company's reputation for quality and reliability sets it apart from competitors.
Despite its notable strength, KLAC slipped 14.9% from its 52-week high of $896.32, achieved on Jul. 11, 2024. Over the past three months, KLAC stock gained 7.6%, outperforming the Dow Jones Industrials Average’s ($DOWI) 3.5% dip during the same time frame.
In the longer term, shares of KLAC rose 21% on a YTD basis, outperforming DOWI’s YTD marginal losses. However, the stock climbed marginally over the past 52 weeks, underperforming DOWI’s 9.4% returns over the last year.
To confirm the bullish trend, KLAC has been trading above its 50-day and 200-day moving averages since early May.
On Apr. 30, KLAC shares closed up more than 2% after reporting its Q3 results. Its adjusted EPS of $8.41 beat Wall Street expectations of $8.06. The company’s revenue was $3.1 billion, beating Wall Street forecasts of $3 billion. For Q4, KLAC expects adjusted EPS to range from $7.75 to $9.31.
KLAC’s rival, Applied Materials, Inc. (AMAT) shares lagged behind the stock, with a 3.3% loss on a YTD basis and 26.9% decline over the past 52 weeks.
Wall Street analysts are moderately bullish on KLAC’s prospects. The stock has a consensus “Moderate Buy” rating from the 25 analysts covering it, and the mean price target of $796.38 suggests a potential upside of 4.5% from current price levels.
