Core Insights - KLA (KLAC) is experiencing significant growth in advanced packaging due to rising demand for powerful chips, particularly in AI and High-Performance Computing (HPC) applications [1][2] - The company anticipates continued revenue growth driven by strong investments in process control products and advanced packaging, with expectations of mid-to-high teens growth in 2026 [2][3] Financial Performance - In calendar 2025, KLA's total systems revenues reached $950 million, marking a 70% year-over-year increase, primarily from advanced packaging revenue growth [2][10] - For fiscal Q3 2026, KLA projects revenues of $3.35 billion (+/- $150 million), reflecting challenges such as rising DRAM costs and supply constraints [4][10] - The Zacks Consensus Estimate for fiscal 2026 earnings is $36.58 per share, indicating a 9.9% growth from fiscal 2025 [15] Market Outlook - The core WFE market is expected to grow in the high single to low double digits in 2026, reaching approximately $120 billion, with advanced packaging projected to grow similarly to around $12 billion [3] - The advanced packaging market, supporting heterogeneous chip integration, is currently valued at $11 billion and is growing faster than the core WFE market [2] Competitive Landscape - KLA faces strong competition from ASML and Applied Materials, both of which are recognized for their process control technologies [5] - ASML is benefiting from sustained demand for AI and HPC chips, providing EUV lithography tools that enhance capacity expansion for chip manufacturers [6] - Applied Materials is leading in AI-driven semiconductor innovations and expects significant growth in wafer fabrication equipment businesses in 2026 [7] Stock Performance - KLA's shares have increased by 104.1% over the past 12 months, outperforming the broader Zacks Computer and Technology sector, which returned 24.4% [8]

Vi e w p o i n t | 20 Feb 2026 11:21:44 ET │ 17 pages US Semiconductor Equipment SPIE 2026 Investor Packet CITI'S TAKE We will be attending the SPIE Advanced Lithography conference from Feb 22-26 in San Jose, California, and hosting meetings with Lam Research, KLA and Applied Materials management teams. The conference features keynotes by a) SK Hynix on HBM technology evolution b) high-NA EUV/process control updates by ASML/IBM/TSMC, and c) Advanced packaging solutions presentations by Rapidus/Micron. Moreo ...

Core Insights - Astera Labs (ALAB) and KLA Corporation (KLAC) are significant players in the semiconductor industry, with ALAB focusing on high-speed connectivity solutions for AI-driven data centers and KLAC providing advanced process control and inspection solutions for semiconductor manufacturing [1][2]. Semiconductor Market Growth - The global semiconductor market size was $598.06 billion in 2025 and is projected to grow to $1,477.06 billion by 2034, reflecting a CAGR of 10.60% from 2026 to 2034 [2]. Astera Labs (ALAB) Overview - ALAB is leveraging a robust and diversified product portfolio to meet the increasing demands of AI infrastructure and connectivity solutions, with strong demand for its PCIe solutions driving growth [3][6]. - In Q4 2025, ALAB expanded its product offerings with custom NVLink Fusion connectivity solutions aimed at optimizing AI infrastructure performance and reducing costs [4]. - The company is also enhancing its Smart Fabric Switch roadmap to cater to next-generation scale-up networking, with the merchant scale-up switching market expected to reach $20 billion by 2030 [5]. KLA Corporation (KLAC) Overview - KLAC's strong portfolio and leadership in process control systems enable customers to manage increasing design complexity, accelerating time to market for diverse semiconductor designs [7]. - Advanced packaging revenue for KLAC grew over 70% year over year in 2025, with continued growth expected in 2026 [8]. - KLAC's solutions are critical for AI-driven applications, utilizing AI-driven analytics to optimize chip manufacturing [9]. Financial Performance - In the trailing 12-month period, ALAB shares surged 53.3%, while KLAC shares increased by 102.9%, attributed to KLAC's dominant market share and strong investment in AI infrastructure [12]. - ALAB expects Q1 2026 revenues between $286 million and $297 million, driven by strong demand for PCIe and AI solutions [11]. - The Zacks Consensus Estimate for ALAB's 2026 earnings is $2.39 per share, indicating a 29.89% year-over-year increase, while KLAC's estimate is $36.58 per share, reflecting a 9.92% year-over-year increase [18]. Valuation Insights - Both ALAB and KLAC shares are currently considered overvalued, with ALAB trading at a forward Price/Sales ratio of 15.69X and KLAC at 13.08X [16]. - ALAB is facing challenges with profit margins due to a shift towards a higher mix of hardware sales and increased operating expenses from R&D and acquisitions [13]. Conclusion - While both companies are positioned to benefit from the growing semiconductor market, KLAC presents a greater upside potential due to its leadership in process control and advanced packaging growth [21].

Core Viewpoint - KLA Corporation has signed a Memorandum of Understanding with the Government of Tamil Nadu to establish a new R&D and innovation campus in Chennai, with an investment of up to $400 million over the next decade, expected to create 4,000 jobs [1][5]. Group 1: Investment and Development - KLA will invest up to $400 million (₹3,600 crore) over the next ten years for the new facility [1]. - The new campus will be an expansion of KLA's existing R&D facility, which was opened earlier this year with an investment of ₹300 crore [2]. - The new campus is planned to be located on a 12-acre site with a potential capacity of up to 1.5 million square feet [2]. Group 2: Government and Industry Support - The MoU was signed in the presence of key government officials, including M K Stalin, Chief Minister of Tamil Nadu, and Udhayanidhi Stalin, Deputy Chief Minister [3]. - The establishment of the R&D campus reinforces Tamil Nadu's role in the global semiconductor value chain, according to Dr. T R B Rajaa, Minister for Industries [4]. Group 3: Strategic Vision - KLA has recognized India as a critical part of its global growth for over two decades, aiming to scale India as a global center for AI and software-led semiconductor innovation [5]. - The planned Chennai campus is expected to enhance KLA's existing R&D capabilities and strengthen collaboration across global teams [5].

Core Viewpoint - Applied Materials' shares surged 11.7% in premarket trading due to strong demand for AI and a tightening memory market, leading to increased orders for chipmaking tools and a positive revenue forecast for Q2 [1] Company Summary - Applied Materials projected Q2 revenue of approximately $7.65 billion, exceeding analysts' average estimate of $7.01 billion, with an adjusted profit forecast of $2.64 per share compared to estimates of $2.28 [1] - CEO Gary Dickerson highlighted that the quarter's performance was driven by accelerated investments in AI computing, with demand for higher-performance and energy-efficient chips [1] - The company is positioned to benefit from the expansion of AI data centers and rising demand for high-bandwidth memory, which are tightening chip supply chains [1] Industry Summary - The semiconductor equipment market is expected to grow, with industry group SEMI forecasting a 9% increase in equipment sales to $126 billion by 2026 and a further 7.3% increase to $135 billion by 2027 [1] - Analysts noted that Applied Materials holds a leadership position in DRAM/HBM, Advanced Logic, and Packaging, benefiting from strong spending driven by generative AI [1] - The positive outlook for Applied Materials has also lifted shares of other chip-equipment stocks, including ASML, Lam Research, and KLA [1]

Summary of Key Points Industry: Storage Devices - The US storage sector (including manufacturers, modules, and equipment) experienced a significant increase recently, reinforcing the previous viewpoint that after a substantial rise in global storage, there will be a period of volatility. The slowdown in spot prices may lead to the first wave of profit-taking, but a significant correction is unlikely as the valuations of SK Hynix and Micron remain below 10X [1] - Under the trend of the AI industry, the fundamentals of storage are expected to continuously exceed expectations. Although the valuations of storage manufacturers cannot be directly compared to TSMC, they are anticipated to gradually shift from current cyclical valuations to growth valuations. This represents a discrepancy in expectations, with potential to break through 10X, and even reach 15X, marking the second wave of market activity after the volatility [1] Company: Teradyne - Teradyne's stock rose by 5.4% recently, with a market capitalization surpassing $50 billion. The stock has been reaching new highs, with a year-to-date increase of 66%. The logic behind the backend testing equipment industry is confirmed, representing the largest discrepancy in expectations for this round of hard technology [2] - Other companies in the front-end equipment sector, such as LAM, KLA, and AMAT, also saw significant increases, with year-to-date gains ranging from 30% to 40%. Semiconductor equipment has been the best-performing asset class within the SOX index [2]

Core Insights - KLA Corporation (KLAC) shares fell 15.1% following the release of second-quarter fiscal 2026 results due to disappointing guidance and operational challenges [1] - The company anticipates third-quarter fiscal 2026 revenues of $3.35 billion (+/- $150 million), indicating a weak product mix and rising costs of DRAM chips impacting gross margins [1] - Supply constraints and negative tariff impacts are expected to create near-term headwinds for the company [1] Performance Overview - KLA shares have increased by 90.6% over the past 12 months, significantly outperforming the Zacks Computer and Technology sector's return of 23.1% and the Zacks Electronics-Miscellaneous Products industry's growth of 37.4% [2] - The company has outperformed competitors such as Applied Materials (81.9%), ASML Holding (87%), and Axcelis Technologies (48.1%) during the same period [3] Growth Drivers - KLA is experiencing strong demand for advanced packaging, with revenues expected to grow in the mid-to-high teens year-over-year in 2026, driven by AI demand [6][9] - The core WFE market is projected to grow in the high single to low double digits in 2026, reaching approximately $120 billion, with advanced packaging contributing to a total market forecast in the mid-$130 billion range [10] Earnings Estimates - The Zacks Consensus Estimate for fiscal 2026 earnings is $36.58 per share, reflecting a 9.9% increase from 2025 [11] - For the third quarter of fiscal 2026, earnings are estimated at $9.12 per share, indicating an 8.4% growth year-over-year, with revenues expected to reach $3.37 billion, a 9.9% increase from the previous year [12] Valuation Metrics - KLA shares are currently trading at a premium, with a forward 12-month price-to-earnings (P/E) ratio of 33.83, higher than the broader sector average of 26.08 [13] - The stock is technically positioned above the 50-day and 200-day moving averages, indicating a bullish trend [16] Investment Recommendation - Despite the recent dip in share price, KLA is recommended as a buy due to strong demand for advanced packaging and robust AI investments, which justify its premium valuation [19]

Market Overview - The U.S. equity markets have experienced a downtrend over the past three trading days, with intensified sell-offs in the technology sector as investors shift focus away from riskier bets due to fears of AI disruption [1] - A significant decline in the cryptocurrency market, particularly Bitcoin dropping below $70,000 to a low of $60,062, has contributed to the negative sentiment [1][2] Labor Market Concerns - Weakness in the labor market has added to the downbeat sentiment, highlighted by the ADP report showing fewer-than-expected job additions in January [2] Momentum Investing Strategy - Momentum investing is characterized by the strategy of "buying high and selling higher," based on the belief that stocks with established trends are likely to continue in that direction [3] - This strategy aims to capitalize on the human tendency to project current trends into the future before mean reversion occurs [3] Screening Parameters for Momentum Stocks - The screening process identifies the top 50 stocks with the best percentage price change over the last 52 weeks, ensuring selection of stocks that have appreciated steadily [5] - From these, the bottom 10 performers over a one-week period are chosen to identify those experiencing short-term pullbacks [6] - Stocks with a Zacks Rank 1 (Strong Buy) and a Momentum Style Score of B or better are prioritized, indicating a higher probability of success [7] - Additional criteria include a current price greater than $5, being among the top 3000 in market capitalization, and an average 20-day trading volume exceeding 100,000 [8] Selected Momentum Stocks - Micron Technology has seen a 305% increase over the past year but experienced a 12.1% decline in the past week, holding a Momentum Score of B [11] - Lam Research has surged 157.5% in the past year but lost 14.1% in the past week, with a Momentum Score of A [12] - KLA Corporation has increased by 74.7% over the past year but faced a 21% decline in the past week, also holding a Momentum Score of A [13]

【长江电子杨洋团队】精测电子减持点评：不利因素释放完毕，看好量检测龙头26年订单高增趋势 #减持公告影响有限、公司基本面向好。 我们认为：减持属基金正常资金需求，此前也有预期，对公司实际控制权及公司战略无影响，短期情绪波动反而 为长期投资者提供配置窗口。 #海外供给受限与国产能力提升有望推进国产替代加速。 KLA作为量检测领域的绝对龙头，占据了全球近60%的市场，且在明暗场领域处于垄断地位，近期在法说会上进 一步强调了面向中国大陆销售的政策压力，同时也因为关键零部件短缺导致供应能力受限。 以精测为代表的国产龙头在明暗场设备和先制程率先突破，2026年有望在长鑫进一步高增长，在长存实现0到1的 突破，且先进明场设备在三地实现订单落地，我们认为公司全年订单和业绩都将同步高增长！ 【长江电子杨洋团队】精测电子减持点评：不利因素释放完毕，看好量检测龙头26年订单高增趋势 #减持公告影响有限、公司基本面向好。 公司发布股东减持计划公告，武汉精至、董秘、财务负责人分别计划减持不超过77.83万股、1.04万股、1.23万 股，占公司总股本比例分别为0.28%、0.0037%、0.0044%，其中武汉精至为公司上市前的员工 ...

Core Viewpoint - KLA Inc. (NASDAQ:KLAC) has experienced a recent stock price decrease of 1.53%, but has shown a monthly increase of 2.36% and a significant annual increase of 90.56%, raising questions about its valuation despite current performance issues [1]. Group 1: Stock Performance - The current stock price of KLA is $1406.03, reflecting a decrease of 1.53% in the current market session [1]. - Over the past month, KLA's stock has increased by 2.36% [1]. - In the past year, the stock has appreciated by 90.56% [1]. Group 2: Valuation Metrics - KLA has a lower P/E ratio compared to the aggregate P/E of 55.48 for the Semiconductors & Semiconductor Equipment industry [4]. - A lower P/E ratio may suggest that shareholders do not expect the stock to outperform in the future, or it could indicate that the company is undervalued [3][4].