Core Viewpoint - Morgan Stanley has raised the price target for KLA Corp. (KLAC) to $1,751 from $1,697 while maintaining an Overweight rating on the shares, indicating a positive outlook for the company despite recent share price declines [1] Summary by Relevant Categories Earnings and Market Reaction - KLA's earnings were described as "not a major surprise," yet the shares experienced a decline in post-market trading [1] Growth Outlook - The company's FY26 WFE (Wafer Fabrication Equipment) market growth outlook is projected to be in the low-double digits, which is below Lam Research's (LRCX) guidance of 23% growth [1] Analyst Perspective - The firm views KLA's WFE guidance as conservative, suggesting that the risk is skewed to the upside, indicating potential for better-than-expected performance [1]

Core Viewpoint - ASML Holding is positioned as a leading tech stock with a market cap of approximately $550 billion, making it the largest tech company not yet in the trillion-dollar club, and it stands to benefit significantly from the growing demand for AI technology [2][6]. Company Overview - ASML is crucial in the development of advanced chips, providing photolithography machines essential for etching circuit patterns on silicon wafers. It is the sole supplier of extreme ultraviolet lithography systems used in manufacturing advanced AI chips, giving it a competitive edge [2][3]. - The company has been experiencing strong, reliable double-digit growth, maintaining gross profit margins above 50%, indicating robust financial health and potential for future expansion [3][5]. Market Position and Future Outlook - Morgan Stanley has upgraded its outlook for ASML, citing strong demand signals from Taiwan Semiconductor Manufacturing, which may lead to a 70% increase in ASML's stock price, potentially raising its valuation to around $935 billion by 2027 [5][6]. - Analysts suggest that ASML's dominant position in the AI chip market and the anticipated increase in AI spending make it a compelling long-term investment opportunity, despite its current trading at 50 times trailing earnings [7].

The company has secured relatively cheap debt financing.Earlier this week, you could almost hear a big, collective sigh of relief from MKS Instruments (MKSI 3.47%) investors, following the company's latest financial news. It managed to secure new debt financing at a modest interest rate; this was rewarded by Mr. Market pushing its stock up by nearly 9% over this week, according to data compiled by S&P Global Market Intelligence.Refinancing moveMKS, a rather under-the-radar company that makes instruments and ...

Semiconductor equipment manufacturer Applied Materials (AMAT) has gained about 77% over the past year on strong demand, but Mizuho analysts think the upside potential is far from over. Analyst Vijay Rakesh raised AMAT stock’s rating from “Neutral” to “Outperform” and hiked the price target from $275 to $370, implying potential upside of about 15% from current prices. This upgrade was based on the analyst’s view of “significant acceleration” in wafer fabrication equipment (WFE) spending through 2027. Mizu ...

KLAC Stock: Chip-Gear Maker KLA Tops Estimates | Investor's Business DailyBREAKING: [Stocks Test Key Levels; U.S. Government Enters Shutdown]---Semiconductor equipment supplier KLA (KLAC) beat estimates for its fiscal second quarter and guided above views for the current period. But KLAC stock fell on Friday. The Milpitas, Calif.-based company late Thursday said it earned an adjusted $8.85 a share on sales of $3.3 billion in the quarter ended Dec. 31. Analysts polled by FactSet had expected earnings of $8.7 ...

Core Insights - KLA Corporation (KLAC) reported second-quarter fiscal 2026 non-GAAP earnings of $8.85 per share, exceeding the Zacks Consensus Estimate by 0.36% and reflecting a year-over-year increase of 7.9% [1][8] - Revenues for the quarter rose 7.2% year over year to $3.3 billion, surpassing the Zacks Consensus Estimate by 1.02% [1][8] - Despite strong earnings and revenue growth, KLAC shares fell 7.7% in pre-market trading [1] Segment Performance - Semiconductor Process Control revenues, which constitute 91.1% of total revenues, increased by 9% year over year and 4% sequentially to $3 billion [2] - Foundry & Logic and Memory segments accounted for approximately 60% and 40% of Semiconductor Process Control revenues, respectively [2] - Specialty Semiconductor Process revenues decreased by 12.4% year over year to $140 million but increased 17% sequentially [2] Product and Revenue Breakdown - Product revenues, making up 76.2% of total revenues, grew by 4.2% year over year to $2.51 billion, while service revenues increased by 18% year over year and 6% sequentially to $786 million [4] - Wafer Inspection revenues rose by 1% year over year and 2% sequentially to $1.57 billion, while Patterning revenues surged by 31% year over year and 4% sequentially to $696 million [5] - Taiwan and China were the largest contributors to revenue, accounting for 26% and 30%, respectively [5] Operating Metrics - The non-GAAP gross margin for the second quarter was 62.6%, exceeding the midpoint of the guidance range by 60 basis points [6] - Research and development (R&D) expenses increased by 10.9% year over year to $383.9 million, representing 11.6% of revenues, a decrease of 40 basis points year over year [6] - Selling, general and administrative (SG&A) expenses rose by 4.8% year over year to $279.9 million, accounting for 8.5% of revenues, a decrease of 20 basis points year over year [7] Financial Position - As of December 31, 2025, cash, cash equivalents, and marketable securities totaled $5.20 billion, up from $4.68 billion as of September 30, 2025 [10] - Long-term debt remained unchanged at $5.88 billion [10] - Cash flow from operating activities was $1.36 billion, compared to $1.16 billion in the previous quarter, with free cash flow at $1.26 billion [10] Shareholder Returns - In the fiscal second quarter, KLAC repurchased $548 million worth of shares and paid $250 million in dividends [11] Guidance - For the third quarter of fiscal 2026, KLAC expects revenues of $3.35 billion, plus or minus $150 million, and non-GAAP earnings of $9.08 per share, plus or minus 78 cents [12] - The company anticipates a non-GAAP gross margin of 61.75%, plus or minus 1%, with operating expenses expected to be around $645 million [12]

KLA Corporation (NASDAQ:KLAC) stock tumbled Friday as investors digested earnings and guidance that landed near expectations but failed to impress.An analyst kept a neutral stance, pointing to valuation concerns and a near-term industry shift toward memory spending.Quarterly UpdateOn Thursday, the company reported second-quarter earnings of $8.85 per share, which beat the analyst consensus estimate of $8.80, according to data from Benzinga Pro.KLA expects third quarter adjusted EPS of $8.30 to $9.86, versus ...

Core Insights - KLA Corporation's stock declined as earnings and guidance met expectations but did not exceed investor hopes [1] - The company reported second-quarter earnings of $8.85 per share, slightly above the analyst consensus estimate of $8.80 [2] - KLA's third-quarter adjusted EPS is projected between $8.30 and $9.86, with revenue expected to be between $3.2 billion and $3.5 billion, both figures aligning closely with analyst estimates [2] Analyst's Perspective - Goldman Sachs analyst James Schneider maintained a Neutral rating on KLA, raising the price target from $1,280 to $1,450 [3] - The stock may experience downward pressure as results and guidance met estimates but fell short of heightened investor expectations [3] - Schneider highlighted KLA's strong position in process control products and potential long-term market share gains, yet preferred companies with better exposure to etch and deposition tools [3] Industry Outlook - Near-term industry spending is shifting towards DRAM rather than process control, with KLA's stock valuation considered relatively full at current levels [4] - KLA's quarterly revenue met Wall Street expectations, with gross margin slightly above consensus; however, non-GAAP earnings were slightly below Schneider's firm's forecast [4] - Management anticipates total wafer fab equipment spending to reach approximately $135 billion by 2026, with core WFE spending projected to grow in the high-single to low-double digits, reaching around $120 billion [5] - KLA expects moderate revenue growth in early 2026, with acceleration later in the year, and anticipates a recovery in China's WFE market in 2026 after a modest decline in 2025 [5] Recent Performance - KLA shares were down 12.33% at $1,477.00 at the time of publication [6]

Core Viewpoint - KLA Corporation's stock fell 11.5% despite reporting second-quarter earnings that exceeded Wall Street's expectations, indicating investor concerns over the company's challenges rather than its financial performance [1][3]. Financial Performance - KLA reported adjusted earnings of $8.85 per diluted share, surpassing the expected $8.80, with revenue reaching $3.30 billion, a 7.1% increase year-over-year [2]. - The company's earnings jumped 41% compared to the previous year, while sales exceeded analyst expectations [2]. Challenges and Market Reaction - CFO Bren Higgins highlighted longer equipment delivery lead times due to component shortages and tariff expenses impacting profitability, which contributed to investor concerns [3]. - The stock had previously gained 140% over the past year, leading to a sell-off as investors reacted to the earnings report, viewing it as a profit-taking retreat rather than a disappointing outcome [4][7]. Competitive Position - KLA's market position remains strong, as it offers essential products with no serious alternatives, particularly in the high-end semiconductor manufacturing sector [6]. - The company is expected to continue experiencing robust business growth as demand for leading-edge tools in chip foundries persists [6].

Core Viewpoint - KLA stock has more than doubled in the past 12 months, but shares experienced a decline following its earnings report [1] Group 1 - KLA's stock performance over the past year indicates significant growth, with a doubling in value [1] - The decline in share price after the earnings report suggests potential concerns among investors regarding the company's financial performance or future outlook [1]