The company is in the middle of a political storm concerning sales of high-performance chips and equipment across the Pacific Ocean.
KLAC's shares are driven by strong demand for advanced wafer inspection, but competition and macro uncertainties pose challenges ahead.
Shares of semiconductor equipment makers KLA (KLAC), Applied Materials (AMAT), and Lam Research (LRCX) posted the steepest losses in the S&P 500 on Tuesday as analysts raised concerns about near-term demand from China.
ASML's disappointing leaked results and guidance sent the sector into a tailspin. But is the bad news a harbinger of downcycling or an opportunity?
On September 30, 2024, Vanguard Group Inc, a prominent investment firm, expanded its portfolio by acquiring an additional 101,920 shares of KLA Corp (KLAC, Financial), a leader in the semiconductor industry. This transaction, executed at a price of $774.41 per share, increased Vanguard's total holdings in KLA Corp to 13,398,832 shares.
The increasing complexity of the industry through HBM and N2 could benefit KLA Corporation and widen the moat. KLAC's robust balance sheet, with $4.5 billion in cash and manageable debt, ensures financial stability and high interest coverage. KLA's high ROIC of 29% versus a WACC of 8.46% demonstrates significant value creation, supported by ongoing share buyback programs and strong growth in the coming years.
KLA (KLAC) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Shares of KLA Corp (KLAC, Financial) surged 4.27% in mid-day trading on Oct 2. The stock reached an intraday high of $785.88, up from its previous close of $753.70.
The latest trading day saw KLA (KLAC) settling at $774.41, representing a -1.02% change from its previous close.
KLA's defect inspection and metrology equipment are essential for economically manufacturing advanced chips. The company returns value to investors through dividends and highly accretive share repurchases. KLA's current P/E ratio of 39.15 is significantly above its historical median, indicating potential overvaluation.
KLA (KLAC) reachead $758.85 at the closing of the latest trading day, reflecting a -1.76% change compared to its last close.
KLA (KLAC) reachead $739.60 at the closing of the latest trading day, reflecting a +0.43% change compared to its last close.