KLAC KLA Corporation
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Daily prices, adjusted for splits. P/E and P/S value each day on the results published by then; a gap in P/E means the trailing year had no profit.
Semiconductor Equipment & Materials · Milpitas, CA · 17,000 employees · kla.com
KLA Corporation develops inspection, metrology, and process control equipment utilized in the manufacturing of semiconductors and printed circuit boards. It generates revenue by selling specialized hardware, software solutions, and related maintenance services to electronics and chip manufacturers globally.
Bull case
The company converts a substantial portion of its revenue into free cash flow after accounting for stock-based compensation. It also benefits from demand tailwinds by providing equipment essential to the hardware that artificial intelligence workloads rely upon.
- Turns 25% of revenue into free cash after stock pay.
- The share price trend is rising.
Bear case
Annual revenue growth has decelerated noticeably. The business also faces vulnerability if the current wave of capital spending on artificial intelligence infrastructure fails to sustain its pace.
- Trades at the 98th percentile of its own valuation history.
- The price assumes about +25% a year cash-flow growth, more than the +3% a year it delivered.
- Annual revenue growth fell from +24% to +12%.
- One of its sector cycles (AI Infrastructure CapEx) is in saturation.
Features
- V-OVERVALUED Overvalued The price is 153% above its own-history reference value.
- V-DECELERATING Growth slowing Annual revenue growth fell from +24% to +12%.
AI impact
Supplies what AI runs on Tailwind
The company sells inspection and metrology equipment used to manufacture semiconductors. Rising need for artificial intelligence computing capacity fuels demand for its leading-edge manufacturing tools, but future performance is exposed to the risk of customer spending on infrastructure slowing down.
Where AI helps it
- Sells what AI workloads consume
Where AI could hurt it
- Depends on the AI build-out continuing
- AI tools could do part of what it sells (minor)
- AI makes it cheaper for rivals to build what it sells (minor)
In the company's words
High-performance computing (“HPC”) and data centers, supported by increasing adoption of AI, are contributing to industry growth and these trends are expected to continue to influence industry investment during fiscal year 2027.
AI-related demand is driving innovation and investment at the leading edge and we believe our portfolio of products is uniquely positioned to support leading-edge semiconductor manufacturing and ongoing AI infrastructure buildout.
Assessed by AI from the company's own annual report filed 6 Aug 2026. A reading of the business, not a forecast or a recommendation.
Valuation position
KLAC is at the 98th percentile of its own valuation history. Depending on how far back you look, it ranges from the 97th to the 99th percentile. This is a relative measurement, not a price target or recommendation, and it assumes the business is still the one its history describes.
Price ladder
The measured price sits in the Above reference zone. These are reference zones, not buy instructions or forecasts that the prices will be reached.
This ladder rests on the company's own valuation history alone: there are too few comparable companies to cross-check it, so treat its zones as less certain.
What the price assumes
The measured price implies roughly +25.0% annual cash-flow growth, between +17.1% and +30.9% under other reasonable assumptions. Over the last three years it delivered +3.1% a year.
An estimate that depends on its assumptions, not a forecast.
Quality versus peers
Each dimension is shown on its own; they are not combined into a score.
Current analyst snapshot
Shown for reference only; not used in any measurement.
What would have to break
- Not triggered — Revenue decline
- Not available — Margin break
- Not triggered — Cash burn with rising debt
- Not triggered — Heavy dilution
- Not triggered — Warning language in filings
News
No recent brief on this company.