Added to YB: 2026-04-16
Pitch date: 2026-04-14
KLAC [neutral]
KLA Corporation
-1.01%
current return
Author Info
No bio for this author
Company Info
KLA Corporation, together with its subsidiaries, designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide.
Market Cap
$235.4B
Pitch Price
$1.8K
Price Target
2.4K (+33%)
Dividend
0.42%
EV/EBITDA
40.77
P/E
52.25
EV/Sales
18.54
Sector
Semiconductors and Semiconductor Equipment
Category
growth
KLA: A Perfect Business at an Imperfect Price
KLAC (overview): Dominant 55% share in process control; 63% gross, 44% op margins. Structural tailwinds: 2nm GAA adds 50% more inspection layers, HBM stack yield sensitivity drives 100bps higher intensity, advanced packaging rev surging from $300M (2023) to $1.1B+ (2026). Services $2.9B (80%+ multi-yr contracts, 95% renewal) growing to $6B by 2030. Trade at 49x trailing, 36x fwd P/E (75% above 10yr avg). Bull: $2,380 (38% upside) on $68 EPS, 35x multiple. Base: $1,650 (flat) on $55 EPS, 30x multiple. Bear: $1,050 (-39%) on $42 EPS, 25x multiple if AI capex stalls. Insider selling $35M+ last 6mo, no buys. Most crowded semiconductor long per BofA. Business improving, valuation stretched.
Read full article (12 min)