KLA Corporation provides process control and process-enabling solutions for manufacturing wafers, reticles/masks, chemicals/materials, integrated circuits (ICs), packaged ICs, and printed circuit boards. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. The company offers inspection, review, and metrology systems, as well as software and service programs, serving semiconductor and electronic device manufacturers. It operates in China, Taiwan, Korea, North America, Japan, Europe, Israel, and rest of Asia. Formerly known as KLA-Tencor Corporation, it changed its name to KLA Corporation in July 2019. Incorporated in 1975, it is headquartered in Milpitas, California.
KLA rides AI-driven equipment demand and massive Korean chip investment
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Citi raises WFE forecast and KLAC price target Citi lifted its KLA price target to $290 from $206.40, citing a new bull-case forecast for wafer fab equipment spending of $145B in 2026 and $250B in 2028. This signals analysts see a longer, stronger equipment upcycle, supporting KLAC's sales outlook.
Directly raises the earnings outlook for KLA and its peers, a core reason the stock is moving.
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KLA projects $215B wafer equipment market by 2030 KLA said the wafer fab equipment market could reach $215B by 2030, with its process-control share rising to 58%. Services growth of 13-15% and advanced packaging add steady revenue, reinforcing the long-term demand story that underpins the stock.
Company's own long-term market forecast directly shapes investor expectations for KLAC's growth.
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Samsung and SK Hynix plan $1.3 trillion Korean chip hub South Korea's Samsung and SK Hynix will invest over $500B in a new chip hub, part of a $1.3T national plan. Each new fab and packaging line needs KLA's inspection tools, creating a decade-long order pipeline that boosts demand visibility.
A massive, concrete capacity build-out that directly increases future orders for KLA's equipment.
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Stock split and raised outlook, but sharp daily swings KLA completed a 10-for-1 stock split and raised its 2026 advanced packaging outlook, making shares more accessible. But the stock still swung over 9% in single days on sector news, a reminder that AI-spending sentiment can cut both ways.
Captures the split and outlook raise while flagging the real counterweight of volatility.
Latest
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KLA's AI-driven order boom meets China export-control drag
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AI demand lifts chip-equipment orders AI data-center spending is driving record orders for chip-making tools. KLA's advanced-packaging revenue is set to grow over 70% to about $1.1 billion in 2026, and its order backlog is around $12.5 billion. More orders mean more future sales and profit, pushing the stock up.
This is the core positive force behind KLAC's business momentum and price.
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China export-control fears weigh on the stock Renewed anxiety over U.S. export controls on China and a broad rotation out of chip-equipment names drove KLA shares down 14% over the past month, even as management raised guidance. The business is strong, but the threat of lost China sales keeps a lid on the stock.
This is the main counterweight explaining why the stock fell despite good results.
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Record $135 billion equipment spending forecast Industry wafer-fab equipment spending is projected to hit a record $135.2 billion in 2026, up 16.9%, with memory equipment growing even faster. KLA sells inspection and measurement tools used at every stage, so a bigger overall market means more potential sales and supports the stock.
It shows the broad industry tailwind that underpins KLA's growth outlook.
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JPMorgan names KLA top pick, raises forecasts JPMorgan raised its chip-equipment market growth forecasts and named KLA its top U.S. pick, citing its underperformance versus peers and underappreciated foundry and logic exposure. Analyst upgrades like this can draw buyers and lift the stock.
It is a fresh, specific catalyst that can change investor sentiment toward KLAC.
Q3 2026
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KLA rides record AI equipment demand but export and China risks bite
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Advanced packaging and record equipment demand Advanced-packaging revenue is set to grow over 70% to about $1.1 billion in 2026, with a roughly $12.5 billion backlog and record industry wafer-fab equipment spending of $135.2 billion. JPMorgan named KLA its top U.S. pick, citing underappreciated foundry and logic exposure.
This is the core new positive force behind KLA's demand outlook this period.
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Guidance disappointment after big rally KLA's guidance disappointed investors after the stock had already rallied 57% year-to-date, a reminder that high expectations can make even solid results look weak.
This explains a key negative price driver this period.
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Export-control fears and sector rotation The stock fell 14% in a month on renewed U.S. export-control fears and rotation out of chip equipment, showing how policy and sector sentiment can quickly hit KLA.
This is a major new negative force on the stock this period.
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China DUV breakthrough and broad chip sell-offs China's homegrown immersion DUV breakthrough threatens future sales, while custom AI chips, Samsung profit-taking, Middle East tensions, and broad semiconductor sell-offs leave KLA exposed to sector-wide swings.
This captures additional new competitive and sentiment risks this period.
News & notes movingKLAC
United States
Semiconductors
Teradyne Launches Magnum E2 Memory Tester as Memory Revenue Hits Record $212 Million
Teradyne has launched the Magnum E2, a next-generation high-speed memory test system built on its Near-DUT Test architecture, supporting advanced DRAM and flash interfaces including LPDDR6, DDR6, GDDR7 and NAND flash. The platform offers higher parallelism, improved signal integrity and support for NRZ, PAM3 and PAM4 signaling, and combines memory and logic testing on a single platform. The launch expands Teradyne's memory test portfolio, led by its Magnum platforms, as the company competes with KLA and Cohu in the semiconductor test-equipment market. In the second quarter of 2026, Teradyne's memory revenues reached a record $212 million, the third consecutive quarter above $200 million, with memory book-to-bill exceeding 2. Management expects the 2026 memory test TAM to be more than 40% higher than 2025 and expects memory revenues to grow in the second half compared to the first half. KLA reported record fourth-quarter fiscal 2026 revenues of $3.66 billion, up 15% year over year and 7% sequentially, while Cohu is extending its Neon inspection platform across HBM3, HBM4 and HBM4E production.
Semiconductors › Advanced Packaging & Test (OSAT) Technology
TER · Capital · Positive Teradyne's memory revenues hit a record $212M in Q2 2026, third straight quarter above $200M, with book-to-bill above 2 and expected H2 growth.
TER · Technology · Positive Teradyne launched the Magnum E2 next-generation high-speed memory test system supporting LPDDR6, DDR6, GDDR7 and NAND flash.
COHU · Competition · Neutral Mentioned only as a competitor extending its Neon inspection platform across HBM3/HBM4/HBM4E, no impact on Cohu stated.
KLAC · Capital · Neutral Reported record Q4 fiscal 2026 revenues of $3.66B, up 15% YoY, but only as context alongside Teradyne's memory test news.
KLA Stock Outpaces Market as Earnings Forecast Points to EPS of $1.18
KLA shares rose 2.76% to close at $200.31, outpacing the S&P 500's 0.2% daily gain, while the Dow and the Nasdaq each added 0.04%. The semiconductor equipment maker's stock has climbed 13.16% over the past month, ahead of the Computer and Technology sector's 4.78% gain and the S&P 500's 0.35% loss. For its upcoming earnings disclosure, KLA is forecast to report an EPS of $1.18, a 34.09% increase from the year-ago quarter, on revenue of $4.04 billion, up 26.02%. For the full year, the Zacks Consensus Estimates forecast earnings of $5.42 per share and revenue of $17.84 billion, changes of +44.15% and +31.35% respectively from the prior year. KLA currently holds a Zacks Rank of #4 (Sell), with a Forward P/E ratio of 35.99 versus an industry average of 20.73 and a PEG ratio of 1.73 against an industry average of 1.39.
KLAC · Capital · Positive KLA is forecast to report EPS of $1.18 (+34.09%) on revenue of $4.04B (+26.02%), with full-year estimates of $5.42 EPS and $17.84B revenue.
KLA Corporation's backlog climbed to $12.57 billion at the end of fiscal 2026 from $7.86 billion a year earlier, driven primarily by demand tied to the AI infrastructure buildout. In the fourth quarter of fiscal 2026, the company raised its calendar 2026 wafer fabrication equipment market expectation, including advanced packaging, to the low-$150-billion range, up from its earlier view of more than $140 billion and compared with roughly $120 billion in calendar 2025. KLA expects second-half calendar 2026 revenues to increase roughly 20% from the first half as additional supply becomes available, and it forecasts advanced-packaging process-control systems revenues of approximately $1.1 billion in calendar 2026, up more than 70% year over year. Rivals are expanding too: Applied Materials expects its process diagnostics and control business to grow more than 50% in 2026, while ASML Holding expects full-year 2026 advanced foundry and logic revenues to rise about 25%, memory revenues to increase 75% and EUV revenues to grow roughly 45%. KLA shares have risen 55.7% year to date, and the Zacks Consensus Estimate for its earnings stands at $1.18 per share, unchanged over the past 30 days and implying 34.09% year-over-year growth.
Semiconductors › Process Control — Metrology & Inspection ▲Demand
KLAC · Demand · Positive KLA's backlog surged to $12.57 billion from $7.86 billion on AI-infrastructure-driven demand, with advanced-packaging process-control revenue seen up over 70% in calendar 2026.
AMAT · Demand · Positive Applied Materials expects its process diagnostics and control business to grow more than 50% in 2026, cited as a rival expanding on the same AI-driven equipment demand.
ASML.AS · Demand · Positive ASML expects full-year 2026 advanced foundry/logic revenues up ~25%, memory up 75% and EUV up ~45%, reflecting the same AI-driven equipment demand.
Onto Innovation Raises Advanced Packaging Outlook to 80% on Dragonfly G5 Demand
Onto Innovation has raised its full-year 2026 advanced packaging growth outlook to at least 80% from more than 50% previously, citing strong demand for its Dragonfly G5 inspection platform. The company generated $343.1 million of quarterly revenue, up 35.3% year over year, while its inspection business, dominated by Dragonfly systems, grew approximately 30% sequentially on demand from 2.5D logic and HBM applications. Onto launched Dragonfly G5 in March 2026 and disclosed in April that the platform had been qualified for 2.5D AI packaging applications, with demand strongest among HBM manufacturers and AI-focused OSATs, including more than $200 million in Dragonfly orders from a single OSAT, most slated for 2027. Management said demand for the Dragonfly platform is expected to grow more than 50% in 2026 from 2025 and expects further growth in 2027 with no signs of customer overcapacity. Competitors are also benefiting from the same AI-driven spending: KLA now expects 2026 wafer fabrication equipment spending in the low-$150 billion range, up from $135-$140 billion, and Applied Materials expects advanced packaging revenue to grow more than 70% in 2026, up from its prior outlook of more than 50%.
ONTO · Demand · Positive Onto raised its 2026 advanced packaging growth outlook to at least 80% on strong Dragonfly G5 demand, including more than $200 million in orders from a single OSAT.
AMAT · Demand · Positive Applied Materials expects advanced packaging revenue to grow more than 70% in 2026, up from prior outlook of more than 50%, on the same AI-driven spending.
KLAC · Demand · Positive KLA now expects 2026 wafer fabrication equipment spending in the low-$150 billion range, up from $135-$140 billion, benefiting from the same AI-driven spending.
Teradyne Leads Semiconductor Manufacturing Stocks With Record Q2, Revenue Up 104%
Teradyne reported Q2 revenues of $1.33 billion, up 104% year on year, exceeding analysts' expectations by 9.3% and posting the biggest analyst estimate beat and highest guidance raise among the 14 semiconductor manufacturing stocks tracked. The company, a US-based supplier of automated test equipment for semiconductors, also beat analysts' EPS and operating income estimates, and its stock is up 20.8% since reporting, trading at $387.50. Across the group, revenues beat consensus estimates by 3.5% while next quarter's revenue guidance came in 6.5% above expectations, and share prices are up 7.2% on average since the latest earnings results. Kulicke and Soffa reported revenues of $330.4 million, up 123% year on year and 5.7% above expectations, the fastest revenue growth of the group, though its stock is down 3.2% since reporting at $90.86. KLA Corporation reported revenues of $3.66 billion, up 15.2% year on year and 1.3% above expectations, with its stock down 1.5% at $188.03, while Entegris reported revenues of $883.2 million, up 11.5% and 5.5% above expectations, with its stock up 19.8% at $149.97, and Amtech reported revenues of $22.38 million, up 14.5% and 4.1% above expectations, with its stock down 5.2% at $15.19.
TER · Capital · Positive Teradyne reported record Q2 revenue of $1.33B, up 104% YoY, beating EPS and operating income estimates with the biggest beat and highest guidance raise of the group.
ASYS · Capital · Positive Amtech reported Q2 revenue of $22.38M, up 14.5% YoY and 4.1% above expectations.
ENTG · Capital · Positive Entegris reported Q2 revenue of $883.2M, up 11.5% YoY and 5.5% above expectations.
KLAC · Capital · Positive KLA reported Q2 revenue of $3.66B, up 15.2% YoY and 1.3% above expectations.
KLIC · Capital · Positive Kulicke and Soffa reported revenue of $330.4M, up 123% YoY and 5.7% above expectations, the fastest growth of the group.
KLA Lifts Calendar 2026 WFE Market Estimate to Low-$150 Billion Range
KLA Corporation is benefiting from accelerating artificial intelligence infrastructure spending, which is driving higher investments in leading-edge foundry and logic technologies and boosting demand for its process-control solutions. In fiscal 2026, the Semiconductor Process Control segment's revenues increased 12% year over year, and overall fiscal 2026 revenues rose 12% year over year to $13.58 billion. During the fourth quarter of fiscal 2026, management raised its calendar 2026 wafer-fabrication equipment market estimate, including advanced packaging, to the low-$150 billion range, up from its previous $140 billion-plus view and approximately $120 billion in calendar 2025. KLAC expects second-half 2026 revenues to be approximately 20% higher than the first half, aided by high-performance computing, high-bandwidth memory, increasing extreme ultraviolet adoption in DRAM and advanced packaging technologies such as hybrid bonding, and said backlog was expected to reach about $12.5 billion. The company faces intensifying competition from Applied Materials, which expects its process diagnostics and control business to grow more than 50% in calendar 2026, and from ASML, which expects advanced foundry and logic revenues to rise about 25% in 2026 and extreme ultraviolet revenues to increase roughly 45%.
KLAC · Capital · Positive Management raised its calendar 2026 WFE market estimate to the low-$150 billion range from $140 billion-plus and guided second-half 2026 revenues ~20% above the first half.
KLAC · Demand · Positive AI infrastructure spending is driving leading-edge foundry/logic investment and demand for KLA's process-control solutions, with fiscal 2026 revenue up 12% to $13.58 billion and backlog near $12.5 billion.
AMAT · Competition · Neutral Named as an intensifying competitor whose process diagnostics and control business is expected to grow over 50% in calendar 2026.
ASML.AS · Competition · Neutral Cited as a competitor expecting advanced foundry/logic revenues up ~25% and EUV revenues up ~45% in 2026.
Applied Materials Posts Record Q2 Revenue of $9.12 Billion, Up 24.8%
Applied Materials reported quarterly revenues of $9.12 billion, up 24.8% year on year, exceeding analysts' expectations by 0.9%, as the 14 semiconductor manufacturing stocks tracked by the report delivered a very strong Q2 in which group revenues beat consensus estimates by 3.5% and next quarter's revenue guidance came in 6.5% above. President and CEO Gary Dickerson called it another record-breaking quarter with the highest sequential revenue growth in the company's history, citing significant improvement in inventory levels and next-quarter revenue guidance above analysts' expectations, though the stock is down 15.3% since reporting and trades at $453.00. Among peers, Kulicke and Soffa posted the group's fastest growth with revenues of $330.4 million, up 123% year on year and 5.7% above expectations, yet its stock is down 11.7% at $82.90, while KLA Corporation, the weakest of the group, reported revenues of $3.66 billion, up 15.2% and 1.3% above expectations, with its stock down 7.3% at $176.86. FormFactor reported revenues of $258.2 million, up 31.9% and 7.6% above expectations, with its stock up 34.7% at $112.38, and Lam Research reported revenues of $6.72 billion, up 30% year on year, meeting expectations, with its stock up 17.8% at $297.23.
JPMorgan Names KLA Top Chip-Equipment Pick, Lifts WFE Forecasts
JPMorgan raised its forecasts for the wafer fabrication equipment market and named KLA as its top pick among U.S. chip-equipment makers in a note to clients on Friday. Analyst Mio Shikanai lifted the bank's WFE market growth estimates to 31% for 2026, taking the market to $163 billion, 38% for 2027 at $225 billion and 17% for 2028 at $263 billion, a 28% compound annual growth rate over 2025 to 2028. Shikanai said cloud service providers are accelerating their investments in response to further growth in AI-related demand, with spending by the top four U.S. players seen growing at a 58% annual rate through 2028. DRAM memory and TSMC drove the upgrade, with the analyst expecting memory supply to lag demand even in 2028 and TSMC's leading-edge capacity to stay above 100% utilization. Shikanai said she sees the most attractive risk/reward in KLA given its relative underperformance year to date, underappreciated exposure to foundry and logic-led WFE spending in 2027, and potential for upward revisions to consensus revenue estimates, noting KLA shares are up about 50% this year but have lagged peers Lam Research and Applied Materials, up roughly 85% and 82%, respectively.
Semiconductors › Deposition, Etch & Process Tools ▲Demand
KLAC · Capital · Positive JPMorgan named KLA its top pick among U.S. chip-equipment makers, citing underperformance and potential upward consensus revenue revisions.
AMAT · Capital · Positive JPMorgan's raised WFE market forecasts and AI-driven capex outlook lift the chip-equipment sector, benefiting Applied Materials as a peer named in the note.
LRCX · Capital · Positive Raised WFE forecasts and AI-driven spending support Lam Research, named as a peer that has outperformed KLA.
Applied Materials CEO Backs 40% Growth Forecast With Eight-Quarter Order Book
Applied Materials CEO Gary Dickerson told David Faber at Goldman's Copia Conference that the company is approaching 40% growth this year, driven entirely by AI compute demand, and he expects strong growth in 2026, 2027 and beyond, backed by rolling eight-quarter customer forecasts and longer tool-shipment commitments. The August quarter delivered revenue of $9.12 billion, up 24.8% year over year, with non-GAAP EPS of $3.50, and guidance for the October quarter calls for revenue near $10.25 billion; CFO Brice Hill said customer visibility extends in some conversations to 2030 and the company is preparing to double its quarterly system output by 2028. Dickerson said DRAM revenue grew from 22% to 26% of semiconductor systems revenue, with DRAM including HBM packaging up 52% year over year to record levels, while advanced packaging is expected to grow more than 70% in calendar 2026. Peer results corroborate the order book: Lam Research reported June-quarter revenue of $6.72 billion, up 30.0% year over year, and raised its calendar 2026 WFE view to the low $150 billion range from $140 billion; KLA posted record revenue of $3.66 billion with remaining performance obligations around $12.5 billion; and ASML plans to add 30% to its 2026 low NA EUV capacity of around 65 for 2027, with another 30% under investigation for 2028. Applied trades at a trailing P/E of 41x and forward P/E of 26x at a current price of $468.85, up 188.38% over the past year but down 10.11% over the past month and below its 52-week high of $738.88, with the 200-day moving average at $407.06.
Semiconductors › Process Control — Metrology & Inspection ▲Demand
Artificial Intelligence › AI Compute & Accelerator Silicon ▲Demand
Artificial Intelligence › HBM & AI Memory ▲Demand
AMAT · Capital · Positive August quarter revenue of $9.12B (+24.8% YoY) and EPS of $3.50 with October guidance near $10.25B.
AMAT · Demand · Positive CEO cites ~40% growth driven by AI compute demand with an eight-quarter order book and record DRAM/HBM and advanced packaging demand.
ASML.AS · Supply · Positive ASML plans to add 30% to its 2026 low NA EUV capacity for 2027 with another 30% under investigation for 2028.
KLAC · Demand · Positive KLA posted record revenue of $3.66B with remaining performance obligations around $12.5B, corroborating the strong order book.
LRCX · Demand · Positive Lam Research reported June-quarter revenue of $6.72B, up 30% YoY, and raised its 2026 WFE view, corroborating the order book.
Memory Boom to Drive Chip Equipment Spending to Record $135.2 Billion in 2026
Global wafer-fabrication-equipment spending is projected to rise 16.9% to a record $135.2 billion in 2026, up from $115.7 billion in 2025, with memory equipment growing faster than the broader market. Within that total, 300mm DRAM equipment spending is projected to rise 29% to $37 billion and 300mm 3D NAND equipment spending is expected to increase 28% to $14 billion, while logic, foundry and other equipment spending remains the largest category at approximately $84.2 billion but grows just 10.6%. The combined $51 billion of DRAM and NAND equipment spending is being driven by Samsung Electronics, Micron Technology and SK hynix simultaneously expanding investment in advanced DRAM, high-bandwidth memory, NAND, cleanrooms and advanced packaging. Lam Research, the most direct beneficiary, reported record June-quarter revenue of $6.72 billion and fiscal 2026 revenue of approximately $23.23 billion, up from $18.44 billion in fiscal 2025, and recently raised its quarterly dividend 27% from $0.26 to $0.33 per share. KLA reported fiscal fourth-quarter revenue of $3.66 billion, up approximately 15% year over year, with fiscal 2026 revenue of $13.58 billion and GAAP net income of $4.83 billion, while ASML reported second-quarter 2026 net sales of €9.3 billion, a 54% gross margin and net income of €2.9 billion, and raised its expected 2026 net sales range to between €43 billion and €45 billion. The principal industry risk remains eventual memory overinvestment, though current investment is concentrated on advanced products, cleanrooms and process migrations.
Semiconductors › Process Control — Metrology & Inspection ▲Demand
Semiconductors › Lithography Systems ▲Demand
ASML.AS · Demand · Positive ASML reported Q2 2026 net sales of €9.3bn, 54% gross margin, and raised its 2026 sales guidance to €43-45bn amid record wafer-fab equipment spending driven by memory makers.
LRCX · Demand · Positive Lam Research, called the most direct beneficiary, posted record June-quarter revenue of $6.72B as memory equipment spending surges.
KLAC · Demand · Positive KLA reported fiscal Q4 revenue up ~15% YoY to $3.66B amid record wafer-fab equipment spending driven by memory makers.
000660.KO · Capital · Positive SK hynix is expanding investment in advanced DRAM, HBM, NAND, cleanrooms and advanced packaging, fueling record equipment spending.
005930.KO · Capital · Positive Samsung Electronics is among the memory makers simultaneously expanding investment in advanced DRAM, HBM, NAND and packaging.
MU · Capital · Positive Micron is among the memory makers simultaneously expanding investment in advanced DRAM, HBM, NAND and packaging, driving equipment demand.
Midday movers: Sandisk, Tesla, Lululemon, Quanex, AMC & more
In midday trading, several stocks made notable moves. Guidewire Software plummeted 21% after issuing weaker-than-expected current-quarter revenue guidance of $372 million to $378 million, below the LSEG consensus of $387 million. Tesla dropped 6% following a National Highway Traffic Safety Administration investigation into whether its Cybercab meets federal safety standards, after the company launched robotaxis in Austin. Sandisk and KLA rallied more than 8% and 7% respectively, as the semiconductor sector gained ahead of the long weekend, with the VanEck Semiconductor ETF (SMH) up over 2% and the Roundhill Memory ETF (DRAM) up 5%. Quanex Building Products surged 19% after beating third-quarter estimates with adjusted earnings of 79 cents per share on revenue of $501.8 million, versus the FactSet consensus of 66 cents and $497.5 million. AMC Entertainment rose 6.5% after CEO Adam Aron criticized Robinhood's stock tokens as "contemptible, outrageous, disgusting," while Robinhood slipped nearly 1%. Credit monitoring firms Equifax, TransUnion, and Fair Isaac fell after Federal Housing Finance Agency Director Bill Pulte said they have been "overcharging Americans for too long," with Fair Isaac down over 15%, Equifax down 6.8%, and TransUnion down over 7%. Smith & Wesson gained 6% on an earnings beat, reporting 6 cents per share versus an expected loss of 6 cents, on revenue of $112.6 million versus the $98.7 million consensus. Lululemon Athletica tumbled 17% after forecasting current-quarter earnings of 93 to 98 cents per share on revenue of $2.29 billion to $2.32 billion, below analyst expectations of $2.40 per share and $2.53 billion. Zscaler slipped 5% despite beating earnings estimates, while Adobe fell 6% after announcing Anil Chakravarthy as its next CEO. Asana dropped 14% on weak guidance, Samsara advanced 4% on strong full-year outlook, UiPath lost 16% despite in-line guidance, and Oxford Industries sank 17% after cutting its full-year guidance.
KLA Sees Advanced Packaging Revenue Surge, Faces Rivals
KLA is benefiting from accelerating demand for advanced packaging driven by AI and high-performance computing, with the company expecting its 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's broad portfolio, including wafer inspection and metrology systems and chemistry process-control systems, positions it to capture spending across multiple stages of advanced packaging, while HPC packaging and integration are also driving demand in its Specialty Process and PCB and Component Inspection businesses, with these combined products expected to grow more than 25% in calendar 2026. However, KLA faces tough competition from Onto Innovation and Applied Materials, with Onto raising its 2026 advanced packaging growth outlook to approximately 80% and securing more than $200 million of Dragonfly orders from a single OSAT, and Applied Materials expecting its process diagnostics and control business to grow more than 50% in 2026. KLA shares have jumped 50.9% year to date, outperforming the broader Zacks Computer and Technology sector's return of 15.4%, but the stock is overvalued with a forward 12-month price/sales of 13.05X compared with the sector's 6.32X. 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 fiscal 2026, and KLA currently carries a Zacks Rank #2 (Buy).
Zacks Names Teradyne, Garmin, KLA Top Electronics Stocks
Zacks Investment Research highlights Teradyne, Garmin, and KLA as top stocks in the Electronics – Miscellaneous Products industry, which has outperformed the S&P 500 over the past year. The industry gained 57.8% versus the S&P 500's 20.8% and the broader sector's 28.6%, and it carries a Zacks Industry Rank of 72, placing it in the top 29% of more than 246 industries. Teradyne, a Zacks Rank #1 Strong Buy, has seen its 2026 earnings estimate jump 26.4% to $9.10 per share over the past 30 days, with shares up 88.5% year to date. Garmin, also a Zacks Rank #1, has a 2026 earnings estimate of $9.94 per share, up 4.3% over 30 days, and shares up 43.5% year to date. KLA, a Zacks Rank #2 Buy, has a fiscal 2027 earnings estimate of $5.43 per share, up 7.1% over 30 days, and shares up 49.4% year to date.
Guinness Global Innovators Fund highlighted KLA Corporation as a notable contributor in its second-quarter 2026 investor letter. The fund holds three semiconductor equipment manufacturers, which were its top performers over the quarter: Applied Materials up 111.8% in USD, KLA up 105.2%, and Lam Research up 103.0%. KLA, the leader in process control and yield management, continues to play a critical role as semiconductor manufacturing becomes increasingly complex, with demand for its inspection and metrology tools structurally supported by the transition to advanced nodes, high-bandwidth memory and advanced packaging. The fund returned 13.8% in GBP for the quarter, compared with 13.0% for the MSCI World Index and 13.1% for the IA Global sector average.
KLA Corporation shares have fallen 14.2% over the past month to $183.99, even as management raised its advanced-packaging revenue guidance by more than 70% to roughly $1.1 billion and lifted its calendar 2026 wafer-equipment market outlook to the low $150 billion range. Fiscal Q4 revenue reached $3.66 billion, up 15.21% year over year, with non-GAAP EPS of $1.05 beating expectations for the fifth consecutive quarter. The pullback stems from renewed anxiety over U.S. export controls on China and a broad rotation out of semiconductor capital equipment names, not from any deterioration in the business. CEO Rick Wallace sold 87,568 shares at $198.95 in August, and free cash flow slipped 23.24% year over year to $817 million. The stock trades at a 34 forward P/E, well below its 52-week high of $307.03, with a consensus analyst target of $231.78 and zero sell ratings among 29 covering analysts.
Shares of Entegris, Penguin Solutions, Seagate, Applied Materials, and KLA Corporation soared in afternoon trading after upbeat earnings and bullish forecasts from key AI industry players signaled robust demand for artificial intelligence technology. Super Micro Computer jumped after its earnings per share came in 84% higher than expected and it provided a revenue forecast that topped estimates, while CoreWeave rallied after its sales forecast also exceeded expectations. The positive sentiment spread globally, with Asian markets gaining as traders bought AI- and semiconductor-related shares, supported by a reported 155% year-over-year surge in South Korea's semiconductor exports for early August. Entegris jumped 6.1%, Penguin Solutions rose 4.7%, Seagate climbed 7.2%, Applied Materials gained 5%, and KLA Corporation advanced 4.2%.
Stocks Mixed as Oil Retreats on Iran Deal Hopes, Yields Dip
U.S. stock indexes were mixed on Tuesday as crude oil prices reversed early gains on signs of progress in U.S.-Iran talks over the Strait of Hormuz, pulling bond yields lower. The S&P 500 edged up 0.04%, the Dow rose 0.32%, and the Nasdaq 100 slipped 0.07%. WTI crude gave up an overnight advance of more than 2% after Pakistan's defense minister said signals suggest an agreement is near, while the 10-year Treasury yield fell 2 basis points to 4.68%. Chipmakers and AI-infrastructure stocks provided support, with ASML and KLA up over 4%, while software names lagged. In earnings, Cardinal Health gained over 4% after beating estimates and issuing strong guidance, while ON Holding tumbled more than 21% on disappointing sales.
KLA Tops Earnings, Lifts Guidance, and Hikes Dividend
KLA Corporation reported higher quarterly and full-year revenue and earnings through June 30, 2026, declared a quarterly cash dividend of US$0.23 per share payable on September 1, 2026, and issued September-quarter guidance calling for about US$4.0 billion in revenue and a GAAP gross margin near 61.6%. The results and outlook are supported by AI-driven wafer fab equipment spending and large-scale projects such as Tesla and SpaceX's Terafab complex. The company's narrative projects $21.3 billion in revenue and $8.8 billion in earnings by 2029, implying a fair value of $232.43 per share, a 21% upside to the current price. Some analysts remain cautious, with low-end estimates assuming roughly US$19.2 billion in revenue and US$7.2 billion in earnings by 2029, though these may be revised following the latest AI-driven demand and guidance.
Tesla and SpaceX plan $16.8 billion Texas chip complex
Tesla and SpaceX are moving forward with a $16.8 billion semiconductor complex in Grimes County, Texas, designed to reduce Elon Musk's dependence on outside chip suppliers. The vertically integrated Terafab facility will combine chip design, wafer production, memory, advanced packaging and testing in one location, aiming to produce more than one terawatt of AI computing capacity annually for Tesla vehicles, Optimus robots, SpaceX satellites and AI data centers. The project could create significant opportunities for semiconductor-equipment suppliers such as ASML, Applied Materials, Lam Research and KLA, with ASML already factoring expected Terafab demand into its future capacity plans. While the complex may give Musk's companies greater control over chip costs and supply, building an advanced factory at this scale carries major execution risks, and investors will monitor equipment orders, construction milestones and production timelines.
Samsung and SK Hynix test Chinese chip tools from AMEC as hedge against US export risks
Samsung Electronics and SK Hynix are evaluating chipmaking equipment from China's Advanced Micro-Fabrication Equipment (AMEC) for possible use at their Chinese factories, three people familiar with the matter said, as the South Korean firms hedge against the risk of tighter U.S. export controls. The memory chipmakers began testing AMEC etching equipment about two years ago, when uncertainty was mounting over whether Washington would continue allowing them to import U.S. chipmaking tools into China. Washington revoked the VEU authorization in 2025 and later granted an annual license to the chipmakers to bring in chip manufacturing equipment to their facilities in China for 2026. Even so, both companies remain wary that future restrictions could extend beyond new equipment to the servicing, repair or replacement of Western tools already installed at their Chinese plants, the sources said. For AMEC, winning approval from Samsung or SK Hynix would amount to a powerful commercial endorsement, though any breakthrough would still face hurdles including lengthy qualification processes and potential political pressure from Washington.
Zacks Adds ASML, Invesco, Citigroup, KLA, and Cheesecake Factory to Strong Buy List
Zacks Investment Research added five stocks to its Zacks Rank Number 1 Strong Buy list on July 31st. ASML Holding saw its current-year earnings consensus estimate rise 17.5% over the last 60 days. Invesco's estimate increased 8.5%, Citigroup's rose 5.1%, KLA's climbed 4.6%, and The Cheesecake Factory's estimate went up 2.5%.
Dow Plunges 1,153 Points After Fed Split on Rate Hold, Bond Yields Surge, Chip Stocks Tumble
US stocks closed sharply lower on Wednesday night, with the Dow Jones Industrial Average falling 1,153.18 points, or 2.19%, to end at 51,594.14. The Federal Reserve voted to keep its policy rate at 3.50 to 3.75 percent, but three of the 12 voting members supported a quarter-point rate hike, highlighting divisions within the committee. Meanwhile, Fed Chair Kevin Warsh gave no clear signal on the policy path for the next meeting. The yield on the 10-year Treasury note surged to 4.68 percent, and the 30-year yield breached 5.20 percent for the first time since mid-2007. AI-related chip stocks extended their sell-off, with Nvidia down 3.6 percent, KLA Corp. tumbling 10.8 percent, and Vertiv plunging 17 percent after revenue missed expectations. The S&P 500 closed at 7,316.15, down 1.52 percent, and the Nasdaq Composite ended at 24,442.94, down 1.74 percent.
Dow Sinks 900 Points as Oil Surges and Fed Decision Looms
U.S. stocks tumbled Wednesday, with the Dow Jones Industrial Average falling about 900 points, or 1.6%, as rising oil prices and renewed Middle East tensions weighed on investor sentiment ahead of the Federal Reserve's policy decision. The S&P 500 lost 1.1% and the Nasdaq Composite declined 1.3%. West Texas Intermediate crude rose about 6.9% to $89.88 a barrel after President Donald Trump said the U.S. would respond forcefully to attacks linked to Iran. Chipmakers extended recent losses, with the iShares Semiconductor ETF sliding more than 4%, while Micron Technology and Advanced Micro Devices each fell more than 5% and KLA dropped over 8%. Markets also remained focused on the Federal Reserve's policy announcement later Wednesday, with traders largely expecting policymakers to leave interest rates unchanged in a target range of 3.5% to 3.75% and attention turning to Chair Kevin Warsh's comments for clues on the rate outlook.
Stocks Tumble as Chipmakers Plunge and Oil Spikes on Geopolitical Risks
U.S. stocks fell sharply, with the S&P 500 sliding to a one-month low and the Nasdaq 100 sinking to a three-month low, as chipmakers and AI infrastructure stocks sold off and crude oil prices surged more than 7%. The Philadelphia Semiconductor Index dropped over 3% to a two-and-a-half-month low, with Nebius Group down more than 9%, KLA Corp and Sandisk down more than 7%, and Applied Materials, NXP Semiconductors, and ARM Holdings down more than 5%. Crude oil jumped after the Islamic Revolutionary Guard Corps said it targeted a U.S. airbase in Jordan with ballistic missiles and claimed to have halted three tankers in the Strait of Hormuz, while the U.S. and Saudi Arabia launched a joint attack on Iran-aligned terrorists in Iraq. The Federal Reserve kept interest rates unchanged in a 9-3 decision, and markets awaited earnings from Microsoft and Meta Platforms after the close. The 10-year Treasury yield rose 4 basis points to 4.64%, and energy stocks gained, with Diamondback Energy up more than 4% and ConocoPhillips, APA Corp, Devon Energy, ExxonMobil, and Occidental Petroleum up more than 3%.
Biogen, GE HealthCare, Ford lead premarket movers on earnings beats
Several companies made notable premarket moves following their latest quarterly reports. Biogen rose 0.7% after beating revenue consensus and raising its full-year adjusted EPS guidance. GE HealthCare Technologies surged 12% on second-quarter adjusted earnings per share of $1.13, topping the FactSet consensus of $1.04, and reaffirmed its 2026 earnings guidance. Ford Motor jumped 6% after beating adjusted earnings expectations and hiking its 2026 earnings outlook, though automotive revenue slightly missed LSEG estimates. Vertiv tumbled 13% as its 17.8% organic revenue growth fell well short of the 23.6% FactSet consensus. Generac gained 5.5% on adjusted earnings of $2.91 per share, beating the $2.01 forecast, and reiterated its revenue growth guidance. Procter & Gamble dropped over 3% after fiscal fourth-quarter revenue of $21.2 billion missed the $21.38 billion LSEG estimate, and net income fell to $3.04 billion from $3.62 billion a year ago. Deutsche Bank rose more than 2% after posting a record second-quarter after-tax profit of 1.9 billion euros. CoStar tumbled 15% on a revenue miss and current-quarter guidance of $935 million to $945 million, below the $967.5 million consensus. Rocky Brands surged 16% as adjusted earnings per share more than tripled year-over-year, aided by tariff refunds and strong double-digit growth in several brands. KLA Corp slid 7% after issuing disappointing guidance, while Seagate Technology rose 6% on an outlook that trounced expectations, and Western Digital gained 4% in sympathy. Manhattan Associates climbed 11% after beating estimates and raising full-year forecasts. Visa lost 2% as its 2026 guidance underwhelmed, and it announced plans to cut about 2,600 jobs. Teradyne surged 9% on beats across second-quarter results and third-quarter forecasts. NXP Semiconductors lost 1.7% as its third-quarter adjusted earnings guidance bracketed the LSEG estimate. Skyworks Solutions slumped 9% after adjusted margin of 44.9% narrowly missed the 45.0% expectation.
Semiconductor stocks slide on China competition and AI demand doubts
Semiconductor stocks fell sharply amid a global sell-off driven by concerns over increased competition from China and doubts about the sustainability of AI-related demand. Amkor led the decline, falling nearly 24% after its third-quarter revenue guidance missed analyst expectations, while Vishay Intertechnology, FormFactor, Penguin Solutions, and Micron dropped roughly 9% to 11%. Kulicke and Soffa fell 7.8%, Applied Materials fell 7.1%, AMD fell 7.2%, Intel fell 5.3%, and KLA Corporation fell 5.1%. The rout extended to Asian peers SK Hynix and Samsung, which dropped over 13%, as reports of China's progress in advanced chip manufacturing and the strong debut of Chinese competitor ChangXin Memory Technologies fueled fears of oversupply and pricing pressure.
KLA forecasts $4 billion September-quarter revenue and lifts 2026 wafer equipment view to low $150 billion range
KLA Corporation guided September-quarter revenue to $4 billion, plus or minus $200 million, while raising its 2026 wafer equipment market outlook to approximately the low $150 billion range, up from a prior expectation of $140 billion plus. CEO Richard Wallace said June-quarter revenue reached a record $3.66 billion, above the midpoint of guidance, driven by accelerating AI infrastructure investment and continued strength in leading-edge foundry and logic. The company now expects advanced packaging process control systems revenue to grow to approximately $1.1 billion in calendar 2026, up more than 70% year-over-year, exceeding the earlier high-50% growth target. CFO Bren Higgins noted that gross margin was 62.4% in the quarter, with headwinds from memory pricing and tariffs, and guided September-quarter gross margin to 62.5% plus or minus one percentage point. Management said visibility continues to improve and expects momentum to accelerate through the second half of calendar 2026, with significant growth continuing into 2027.
Artificial Intelligence › AI Data Center & Build-out ▲Demand
Artificial Intelligence › EDA & Semiconductor IP ▲Demand
KLAC · Demand · Positive KLA raised its 2026 wafer equipment market outlook and guided strong revenue growth driven by AI infrastructure investment and advanced packaging demand.
Ford, Teradyne surge while KLA Corp, CoStar tumble in after-hours trading
Several stocks made big moves in after-hours trading following their latest earnings reports. Ford Motor surged 6% after beating second-quarter adjusted earnings expectations and raising its 2026 earnings outlook, though automotive revenue slightly missed LSEG estimates. Teradyne jumped 14% as both second-quarter results and third-quarter guidance topped FactSet forecasts, while Seagate Technology rose 8% on an outlook that trounced LSEG expectations, lifting Western Digital 4% in sympathy. On the downside, KLA Corp slid 9% after issuing disappointing guidance, CoStar tumbled 12% on a revenue miss and weak current-quarter forecast, and Skyworks Solutions slumped 10% as adjusted margin narrowly missed expectations. Visa lost nearly 2% after its 2026 fiscal-year guidance underwhelmed, despite announcing plans to cut about 2,600 jobs, or roughly 7% of its headcount.
KLA Corp shares drop 10% after guidance disappoints despite Q4 beat
KLA Corporation shares tumbled 10% on Tuesday after the company issued guidance that fell short of expectations, even as it reported fourth-quarter results that exceeded analyst estimates. The semiconductor equipment maker posted fourth-quarter earnings per share of $1.05, beating the analyst estimate of $1.00, with revenue reaching $3.66 billion compared to the consensus estimate of $3.6 billion. For the full fiscal year ended June 30, 2026, the company reported GAAP net income of $4.83 billion and GAAP diluted earnings per share of $3.66 on total revenues of $13.58 billion. KLA sees first-quarter earnings per share of $1.06 to $1.26, compared to the consensus of $1.13, and projects fiscal 2027 revenue of $3.8 billion to $4.2 billion, versus the consensus estimate of $3.91 billion. President and CEO Rick Wallace said the June quarter results reinforce that the trends driving growth are strengthening, with momentum across the business accelerating in the second half of calendar 2026 and continuing through 2027.
KLA Corp forecasts first-quarter revenue and profit above estimates on AI demand
KLA Corp forecast first-quarter revenue and profit above Wall Street estimates, betting that continued investment in AI infrastructure would sustain strong demand for its chipmaking tools. The company expects first-quarter revenue of $4 billion, plus or minus $200 million, ahead of analysts' average estimate of $3.92 billion, and adjusted earnings of $1.16 per share, plus or minus 10 cents, also ahead of an estimate of $1.14. Fourth-quarter revenue grew 15.1% to $3.66 billion, beating estimates of $3.60 billion, while adjusted profit came in at $1.05 per share compared with an estimate of $1. CEO Rick Wallace said momentum across the business is accelerating in the second half of 2026 and continuing through 2027, with the AI infrastructure buildout also driving new growth opportunities in advanced packaging. Shares of the California-based company fell 8% in extended trading despite having risen over 57% so far this year.
KLA Corporation reported total revenues of $3.66 billion for its fiscal 2026 fourth quarter, above the midpoint of its guidance range. GAAP diluted earnings per share were $1.04 and non-GAAP diluted EPS were $1.05, both at the upper end of guidance. For the full fiscal year, total revenues reached $13.58 billion, with GAAP net income of $4.83 billion and GAAP diluted EPS of $3.66. The company also provided first quarter fiscal 2027 guidance, expecting total revenues between $3.8 billion and $4.2 billion and non-GAAP diluted EPS between $1.06 and $1.26. KLA effected a ten-for-one stock split on June 11, 2026, with all share and per-share figures retroactively adjusted.
Visa, KLA, Seagate Among Companies Reporting After-Hours Earnings on July 28, 2026
A slate of major companies including Visa, KLA Corporation, and Seagate Technology are scheduled to report quarterly earnings after the market closes on July 28, 2026. Visa is expected to post earnings per share of $3.23, an 8.39% increase from the same quarter last year, with a forward price-to-earnings ratio of 27.63 versus an industry average of 25.00. KLA Corporation has a consensus estimate of $1.00 per share, up 6.38% year-over-year, and trades at a P/E of 54.81 compared to its industry's 14.50. Seagate Technology's forecast stands at $4.89 per share, more than doubling the prior-year quarter, with a P/E of 57.78 against an industry ratio of 20.40. Other notable reports include Waste Management at $1.99 per share, Mondelez International at $0.67, NXP Semiconductors at $3.20, Ford Motor at $0.33, Bloom Energy at $0.23, Teradyne at $2.04, Arch Capital Group at $2.49, Extra Space Storage at $2.06, and FirstEnergy at $0.49.
KLAC · Capital · Neutral KLA Corporation is reporting earnings after hours; the article provides estimates but no actual results or market reaction.
MDLZ · Capital · Neutral Mondelez International is reporting earnings after hours; the article provides estimates but no actual results or market reaction.
STX · Capital · Neutral Seagate Technology is reporting earnings after hours; the article provides estimates but no actual results or market reaction.
TER · Capital · Neutral Teradyne is reporting earnings after hours; the article provides estimates but no actual results or market reaction.
V · Capital · Neutral Visa is reporting earnings after hours; the article provides estimates but no actual results or market reaction.
ACGL · Capital · Neutral Arch Capital Group is mentioned as reporting earnings after hours, but no actual results or surprises are given.
ASML and U.S. chip stocks sink on report of China’s DUV breakthrough
Semiconductor capital equipment stocks sank on Monday after a report that a Shanghai-based, state-backed company has started mass-producing homegrown immersion DUV lithography machines for the first time. ASML erased early gains of over 2% and dragged down U.S. peers Applied Materials, Lam Research, and KLA Corp following the report by The Information. The publication noted that the company assembled DUV development teams from other Chinese firms, including state-backed startup Shanghai Yuliangsheng Technology, to achieve the milestone. The breakthrough threatens ASML’s DUV sales to China, which had become a massive revenue driver after export controls banned sales of its cutting-edge EUV machines, and raises fears that a fully indigenized Chinese chip sector could displace other U.S. equipment suppliers. The development also undermines the impending U.S. MATCH Act, which aims to block China from buying or servicing DUV machines, as domestic production could render the restrictions ineffective.
KLA Corporation Rose on Strong Results and Process Control Demand
KLA Corporation continued to post strong results in the second quarter of 2026, benefiting from secular demand for its process control systems as chip complexity rises and supply chains reshore. Jensen Quality Growth Equity Strategy highlighted the stock as its top performer during the period, citing underlying financial strength, high customer demand, good revenue visibility via its backlog, and bullish long-term forward guidance. The fund noted that investor enthusiasm increased alongside strong results and thesis drivers. KLA shares closed at $210.52 on July 24, 2026, with a one-month return of negative 24.38% and a 52-week gain of 128.05%, and a market capitalization of $275 billion.
KLA Corporation will report its second-quarter earnings after the bell on Tuesday. The semiconductor manufacturing equipment maker beat revenue expectations last quarter with $3.42 billion, up 11.5% year on year. Analysts expect revenue to grow 13.7% year on year this quarter, a slowdown from the 23.6% increase in the same quarter last year. The company has a history of exceeding Wall Street estimates, and analysts have generally reconfirmed their estimates over the last 30 days. KLA Corporation shares are down 24.1% over the past month, heading into earnings with an average analyst price target of $234.04 compared to the current share price of $211.40.
KLA Set to Report Q4 Earnings Amid AI-Driven Demand and Margin Headwinds
KLA Corporation is scheduled to report its fourth-quarter fiscal 2026 results on July 28. The company expects revenues of $3.575 billion, plus or minus $200 million, while the Zacks Consensus Estimate is $3.61 billion, indicating a 13.71% increase from the year-ago quarter. The consensus earnings estimate is $1 per share, reflecting 6.38% year-over-year growth. KLA's performance is likely to have benefited from strong foundry and logic spending driven by AI infrastructure, with foundry and logic expected to account for roughly 82% of semiconductor process control systems revenues. However, higher DRAM chip prices are expected to have reduced gross margin by approximately 100 basis points, and a slightly weaker product mix may have limited margin expansion. KLA shares have jumped 80% year to date, outperforming the broader Zacks Computer and Technology sector's return of 13.2%, but the stock trades at a forward 12-month price-to-earnings ratio of 42.48, above the sector average of 23.73. The company expects advanced packaging revenues to reach approximately $1 billion in calendar 2026, up from roughly $635 million in 2025, though it faces risks from elevated memory costs and geopolitical uncertainties. KLA currently carries a Zacks Rank of 3, or Hold.
Global EUV Lithography Market Forecast to Reach $30.36 Billion by 2032
The global extreme ultraviolet lithography market is projected to grow from $15.84 billion in 2026 to $30.36 billion by 2032, a compound annual growth rate of 11.4%, according to a new report from ResearchAndMarkets.com. Light sources are expected to be the fastest-growing component segment, driven by demand for higher wafer throughput and the transition to next-generation EUV platforms. Logic chips accounted for the largest application share in 2025, reflecting widespread adoption at 7 nm, 5 nm, and 3 nm nodes for artificial intelligence, high-performance computing, and premium consumer devices. Asia Pacific is forecast to register the highest regional growth rate, supported by major foundry expansions at advanced nodes and government-backed semiconductor initiatives. ASML remains the sole EUV lithography system manufacturer, while the broader ecosystem includes component suppliers such as TRUMPF, ZEISS Group, and KLA Corporation.
TSMC's capex surge signals direct boost for chip equipment makers
Taiwan Semiconductor Manufacturing Company has raised its capital spending plans, sending a direct positive signal to semiconductor equipment makers. The company pledged an additional $100 billion in U.S. investment, bringing its total U.S. commitment to $265 billion, while also raising its growth outlook after reporting record Q2 revenue with sales rising 36% year over year on strong AI chip demand. Analysts named Applied Materials, ASML Holding, Lam Research, KLA Corporation, and MKS Instruments as direct beneficiaries of sustained tool demand tied to leading-edge nodes and advanced packaging. Applied Materials expects its semiconductor equipment business to grow more than 30% in calendar 2026, with export restrictions already incorporated into guidance. ASML is considering raising prices on its chipmaking tools despite pushback from TSMC, with China accounting for approximately 20% of total net sales and DUV tool demand particularly sensitive to export curb changes.
KLA Stock Appears Fairly Valued After AI Demand News
KLA stock seems fairly valued following fresh AI demand news, with its price-to-earnings ratio of 58.1 times roughly in line with the broader semiconductor industry's 58.7 times. The company's P/E is also close to a peer average of 52.7 times and a modeled fair P/E of 56.3 times, suggesting the stock is neither cheap nor expensive on this measure. KLA has delivered a 606.8% return over the past five years, but its overall value score is low, with the stock screening as attractive on only one of six valuation checks. The next move may depend on whether the current price already reflects AI-driven optimism or still offers enough value for long-term investors.
AI memory and chip stocks fall again as SK hynix and Samsung slump despite strong TSM results
Shares of memory and AI-related stocks fell again in premarket trading on Thursday after South Korean peers SK hynix and Samsung Electronics tumbled for a second day despite strong earnings and outlook from Taiwan Semiconductor Manufacturing. SK hynix plummeted about 12% on the Korea Exchange, while Samsung slumped nearly 9%, dragging the Kospi Index down about 6.37%. TSM raised its 2026 revenue growth outlook for the second time this year and announced plans to invest an additional $100 billion to expand U.S. chipmaking capacity, bringing its total investment plan to $265 billion, yet its stock fell about 4%. American memory giant Micron Technology fell nearly 3% premarket, Western Digital slumped about 5%, Seagate Technology fell nearly 4%, and Sandisk tumbled about 6%. AI chipmaker Nvidia dipped about 1%, while Advanced Micro Devices declined nearly 3%, Broadcom and Qualcomm each fell about 2%, and chip equipment makers Lam Research, Applied Materials, KLA, and ASML each fell around 2%.
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