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KLA-Tencor Corporation (KLAC)



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Upturn Advisory Summary
07/02/2025: KLAC (4-star) is a STRONG-BUY. BUY since 36 days. Profits (21.41%). Updated daily EoD!
1 Year Target Price $808.35
1 Year Target Price $808.35
11 | Strong Buy |
6 | Buy |
10 | Hold |
1 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 50.71% | Avg. Invested days 53 | Today’s Advisory Regular Buy |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Large-Cap Stock | Market Capitalization 118.86B USD | Price to earnings Ratio 32.69 | 1Y Target Price 808.35 |
Price to earnings Ratio 32.69 | 1Y Target Price 808.35 | ||
Volume (30-day avg) 28 | Beta 1.39 | 52 Weeks Range 550.01 - 921.95 | Updated Date 07/1/2025 |
52 Weeks Range 550.01 - 921.95 | Updated Date 07/1/2025 | ||
Dividends yield (FY) 0.85% | Basic EPS (TTM) 27.5 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 31.99% | Operating Margin (TTM) 42.45% |
Management Effectiveness
Return on Assets (TTM) 19.23% | Return on Equity (TTM) 104.1% |
Valuation
Trailing PE 32.69 | Forward PE 26.81 | Enterprise Value 120514489508 | Price to Sales(TTM) 10.29 |
Enterprise Value 120514489508 | Price to Sales(TTM) 10.29 | ||
Enterprise Value to Revenue 10.43 | Enterprise Value to EBITDA 24.24 | Shares Outstanding 132241000 | Shares Floating 131965045 |
Shares Outstanding 132241000 | Shares Floating 131965045 | ||
Percent Insiders 0.11 | Percent Institutions 90.76 |
Upturn AI SWOT
KLA-Tencor Corporation

Company Overview
History and Background
KLA-Tencor Corporation was formed in 1997 through the merger of KLA Instruments and Tencor Instruments. KLA Instruments was founded in 1975, and Tencor Instruments was founded in 1968. The company has grown through acquisitions and organic growth to become a leading supplier of process control and yield management solutions for the semiconductor and nanoelectronics industries.
Core Business Areas
- Wafer Inspection: Provides systems that detect defects and monitor process variations on semiconductor wafers.
- Reticle and Mask Inspection: Offers systems to inspect reticles and masks used in semiconductor manufacturing.
- Data Analytics and Process Control Software: Provides software solutions for analyzing data and controlling manufacturing processes.
- Service: Provides service and support for their equipment.
Leadership and Structure
The CEO is Rick Wallace. The company is structured into various business units focusing on specific product lines and geographies. The board of directors provides oversight and strategic guidance.
Top Products and Market Share
Key Offerings
- Wafer Inspection Systems: These systems are used to identify defects on silicon wafers during the manufacturing process. KLA-Tencor holds a significant market share in this area. Competitors include Applied Materials and ASML. While precise revenue figures are not publicly disaggregated by specific product, wafer inspection is a significant contributor to overall revenue. Market Share is ~ 60% in the area of Wafer Inspection Systems.
- Reticle/Mask Inspection Systems: Used to inspect photomasks, which are critical for transferring circuit patterns onto wafers. KLA-Tencor also holds a significant market share. Competitors include Lasertec. Again, the revenue is not publicly available from this specific system but contributes a substantial amount to the overall company. Market Share is ~80% in the area of Reticle/Mask Inspection Systems.
- Software and Analytics: KLA's software platforms enable customers to analyze data collected from inspection and metrology tools, improving process control and yield. Competitors include PDF Solutions.
Market Dynamics
Industry Overview
The semiconductor equipment industry is highly cyclical, driven by capital spending from chip manufacturers. Demand is influenced by trends like 5G, AI, cloud computing, and automotive electronics.
Positioning
KLA-Tencor is a leader in process control and yield management solutions. The company's competitive advantage lies in its technology leadership, broad product portfolio, and strong customer relationships.
Total Addressable Market (TAM)
The TAM for process control equipment is estimated to be tens of billions of dollars annually. KLA-Tencor is well-positioned to capture a significant portion of this market due to its leading market share and technology.
Upturn SWOT Analysis
Strengths
- Market leadership in process control
- Strong R&D capabilities
- Large installed base
- High barriers to entry
- Global presence
- Strong brand recognition
Weaknesses
- Cyclical exposure to the semiconductor industry
- Dependence on capital spending by chip manufacturers
- Complex technology requiring significant investment
Opportunities
- Growth in advanced packaging
- Increasing demand for smaller and more complex chips
- Expansion into new markets (e.g., data centers)
- Growth in the compound semiconductor market
- Increasing complexity of semiconductor manufacturing processes
Threats
- Economic downturns
- Intense competition
- Technological obsolescence
- Geopolitical risks
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- ASML (ASML)
- Applied Materials (AMAT)
- Lasertec (6920.T)
Competitive Landscape
KLA-Tencor benefits from its specialization and technological leadership. ASML is dominant in lithography. Applied Materials has a broader product portfolio. Lasertec competes in specific segments like mask inspection.
Major Acquisitions
Orbotech Ltd.
- Year: 2019
- Acquisition Price (USD millions): 3400
- Strategic Rationale: Expanded KLA-Tencor's portfolio into printed circuit board (PCB) and flat panel display (FPD) markets, providing diversification and new growth opportunities.
Growth Trajectory and Initiatives
Historical Growth: KLA-Tencor's growth has been driven by increasing demand for its products and services in the semiconductor industry.
Future Projections: Analyst estimates project continued growth for KLA-Tencor, driven by long-term trends in the semiconductor industry.
Recent Initiatives: Recent initiatives may include new product launches, acquisitions, and expansions into new markets. Check recent press releases for up-to-date information.
Summary
KLA-Tencor is a strong company, holding market leadership in process control and yield management within the semiconductor equipment industry. Its strengths lie in technological innovation and customer relationships. The cyclical nature of the industry and intense competition, however, present ongoing challenges. Recent initiatives like acquisitions and product development position KLA-Tencor for future growth, but it needs to watch out for economic slowdowns and geopolitical risks.
Peer Comparison
Sources and Disclaimers
Data Sources:
- KLA-Tencor Investor Relations
- Industry reports
- Analyst estimates
- Company press releases
- Sec Filings
- Third-party market research reports
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice. Market share and financial data are estimates and may vary. Please consult with a qualified financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About KLA-Tencor Corporation
Exchange NASDAQ | Headquaters Milpitas, CA, United States | ||
IPO Launch date 1980-10-08 | President, CEO & Executive Director Mr. Richard P. Wallace | ||
Sector Technology | Industry Semiconductor Equipment & Materials | Full time employees 15000 | Website https://www.kla.com |
Full time employees 15000 | Website https://www.kla.com |
KLA Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. The company offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned wafers; metrology systems that are used to measure pattern dimensions, film thickness, film stress, layer-to-layer alignment, pattern placement, surface topography, and electro-optical properties for wafers; chemical process control equipment; wired and wireless sensor wafers and reticles; wafer defect inspection, review, and metrology systems; reticle inspection and metrology systems; and semiconductor software solutions that provide run-time process control, defect excursion identification, process corrections, and defect classification to accelerate yield learning rates and reduce production risk. It also provides etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, the company offers direct imaging, inspection, optical shaping, inkjet and additive printing, UV laser drilling, and computer-aided manufacturing and engineering solutions for the PCB market; inspection and electrical testing systems to identify and classify defects, as well as systems to repair defects for the display market; and inspection and metrology systems for quality control and yield improvement in advanced and traditional semiconductor packaging markets. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.
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