KLA Corporation Conference Call Summary Company Overview - **Company**: KLA Corporation (NASDAQ: KLAC) - **Event**: UBS Global Technology and AI Conference - **Date**: December 4, 2024 Key Points Industry Dynamics - **Export Controls Impact**: KLA anticipates a $500 million incremental impact from new export restrictions for 2025, with 70% affecting systems and 30% affecting services [3][4] - **China Business Decline**: KLA expects its China business to decrease by approximately 20% in 2025, down from about 40% in 2024 [4] - **WFE Growth Expectations**: Despite challenges, KLA expects modest growth in wafer fabrication equipment (WFE) spending in 2025, driven by leading-edge investments [7][8] Financial Performance - **Service Growth**: Service revenue growth is projected to be in the high single digits to low double digits, down from a trend of 12% to 14% due to headwinds [5] - **Market Share**: KLA's market share in WFE is expected to increase by approximately 75 basis points, with a potential gain of 20 basis points in 2025 despite challenges in China [8][9] - **Revenue Growth Projections**: KLA anticipates a revenue growth rate of 9% to 11% over time, with operating margins between 40% and 50% [27] Product and Technology Insights - **Advanced Packaging Demand**: KLA's revenue from advanced packaging is projected to grow from $300 million in 2023 to $750 million in 2025, driven by high-performance computing [14] - **Software Integration**: KLA emphasizes the importance of software in its value proposition, with standalone software revenue doubling to $175 million over the past four to five years [42] - **AI Utilization**: KLA is leveraging AI to enhance its systems and improve yield learning cycles, collaborating with NVIDIA on advanced computing architectures [45][46] Market Trends and Customer Behavior - **Backlog and RPO**: KLA's backlog has increased to approximately 10-11 months, reflecting both cyclical and secular changes in customer ordering behavior [47][52] - **Regionalization Effects**: The emergence of government stimulus in Japan and other regions is expected to create opportunities for KLA, particularly in service and support for new foundries [54][56] Challenges and Considerations - **Gross Margin Stability**: KLA's gross margins have been stable around 61% to 62%, with challenges in pushing margins higher due to pricing discipline and market dynamics [28][31] - **China Market Rationalization**: There is a potential for forced consolidation in the Chinese market, which could impact KLA's long-term outlook [20][24] Conclusion - KLA Corporation is navigating a complex landscape with export controls and a shifting market in China, while also capitalizing on growth opportunities in advanced packaging and software integration. The company maintains a positive long-term outlook with expected revenue growth and stable margins, despite short-term challenges.

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about KLA (KLAC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.KLA currently has an average brokerage recommen ...

KLA Corporation (NASDAQ:KLAC) Wells Fargo 8th Annual TMT Summit Conference December 3, 2024 12:30 PM ET Company Participants Bren Higgins - CFO Brian Lorig - Head of Global Support and Services Conference Call Participants Joe Quatrochi - Wells Fargo Joe Quatrochi Great. Let's go ahead and get started. So I'm Joe Quatrochi, the semi cap analyst at Wells Fargo. Today, we're pleased to feature KLA, CFO, Bren Higgins, as well as the Head of Global -- I'm sorry, Head of Global Support and Services, Brian Lorig ...

KLA Corporation (NASDAQ:KLAC) Wells Fargo 8th Annual TMT Summit Conference December 3, 2024 12:30 PM ET Company Participants Bren Higgins - CFO Brian Lorig - Head of Global Support and Services Conference Call Participants Joe Quatrochi - Wells Fargo Joe Quatrochi Great. Let's go ahead and get started. So I'm Joe Quatrochi, the semi cap analyst at Wells Fargo. Today, we're pleased to feature KLA, CFO, Bren Higgins, as well as the Head of Global -- I'm sorry, Head of Global Support and Services, Brian Lorig ...

In the latest market close, KLA (KLAC) reached $665.72, with a -0.05% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 0.05% for the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 0.4%.The the stock of maker of equipment for manufacturing semiconductors has risen by 0.4% in the past month, lagging the Computer and Technology sector's gain of 4.59% and the S&P 500's gain of 5.75%.The upcoming earnings release of KLA will be of great ...

KLA Corporation (KLAC) shares have appreciated 11% year to date (YTD), trailing the Zacks Computer and Technology sector’s return of 27.4% but outperforming the Zacks Electronics – Miscellaneous Products industry’s loss of 25.5%.However, KLAC has underperformed peers like Garmin (GRMN) , Brother Industries (BRTHY) and Flex (FLEX) , which have delivered YTD returns of 66.9%, 14.1% and 34.9%, respectively.KLAC’s growth has been driven by the strength of its wafer inspection segment, supported by rising demand ...

In an industry mostly categorized by growth rather than income, finding companies that offer a mixture of both can be valuable. Below are three semiconductor stocks that look to provide investors with dividend income and recently instituted notable increases in the amount they pay out. I’ll review each firm's dividend details and provide background on their businesses. Get Power Integrations alerts:KLA: Equipment Giant on Track for 15th Consecutive Annual Dividend Increase KLA NASDAQ: KLAC, while it doesn’t ...

For Immediate ReleasesChicago, IL – November 13, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including Amazon.com Inc. (AMZN) , KLA Corp. (KLAC) , Newmont Corp. (NEM) , Uber Technologies Inc. (UBER) and S&P Global Inc. (SPGI) . Here are highlights from Wednesday’s Analyst Blog:5 U.S. Corporate Behemoths to Buy ...

I rate KLA Corporation (NASDAQ: KLAC ) stock as a Buy. Backed by the company’s cutting-edge technology, the billion-dollar company KLA has some of the most advanced technologies, such as 29xx broadband plasma , whichFirst Principles Partners is an equity research analyst specializing in technology, innovation, and sustainability investment. My unique approach, "First Principles," involves breaking down complex problems to their most basic elements in terms of financial and technology, enabling me to uncover ...

Investors might want to bet on KLA (KLAC) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.The power of a changing earni ...