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KLAC 
KLA-Tencor Corporation (KLAC)
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Upturn Advisory Summary
12/09/2025: KLAC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
28 Analysts rated it
Well-followed company, solid analyst reports, reliable data for confident investing.
1 Year Target Price $1295.54
1 Year Target Price $1295.54
| 11 | Strong Buy |
| 6 | Buy |
| 10 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 41.98% | Avg. Invested days 44 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  4.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 12/09/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 161.39B USD | Price to earnings Ratio 38.49 | 1Y Target Price 1295.54 |
Price to earnings Ratio 38.49 | 1Y Target Price 1295.54 | ||
Volume (30-day avg) 28 | Beta 1.44 | 52 Weeks Range 547.89 - 1282.32 | Updated Date 12/9/2025 |
52 Weeks Range 547.89 - 1282.32 | Updated Date 12/9/2025 | ||
Dividends yield (FY) 0.59% | Basic EPS (TTM) 31.84 |
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 33.83% | Operating Margin (TTM) 41.66% |
Management Effectiveness
Return on Assets (TTM) 20.44% | Return on Equity (TTM) 99.17% |
Valuation
Trailing PE 38.49 | Forward PE 33.67 | Enterprise Value 162306271191 | Price to Sales(TTM) 12.89 |
Enterprise Value 162306271191 | Price to Sales(TTM) 12.89 | ||
Enterprise Value to Revenue 12.96 | Enterprise Value to EBITDA 29.18 | Shares Outstanding 131392338 | Shares Floating 131067799 |
Shares Outstanding 131392338 | Shares Floating 131067799 | ||
Percent Insiders 0.1 | Percent Institutions 94.52 |
Upturn AI SWOT
KLA-Tencor Corporation
Company Overview
History and Background
KLA-Tencor Corporation (now KLA Corporation) was formed in 1997 through the merger of KLA Instruments and Tencor Instruments. KLA Instruments was founded in 1976, and Tencor Instruments in 1977. The company is a global leader in process control and yield management solutions for the semiconductor and related industries. It has been instrumental in driving advancements in chip manufacturing through its metrology and inspection systems.
Core Business Areas
- Semiconductor Process Control: KLA provides advanced metrology and inspection solutions that enable semiconductor manufacturers to achieve higher yields and improve manufacturing efficiency. This includes equipment for critical wafer inspection, metrology for process control, defect review, and advanced packaging.
- Electronics, Packaging, and Components: Beyond core semiconductor manufacturing, KLA's solutions extend to inspection and metrology for integrated circuit (IC) packaging, printed circuit boards (PCBs), flat panel displays, and other electronic components.
Leadership and Structure
KLA Corporation is led by a management team with extensive experience in the semiconductor industry. The company operates through various divisions focused on specific product lines and market segments, ensuring specialized expertise and customer focus.
Top Products and Market Share
Key Offerings
- Wafer Inspection Systems: KLA offers a comprehensive suite of wafer inspection tools that detect defects at various stages of the semiconductor manufacturing process. These systems are critical for identifying microscopic flaws that can impact chip performance and yield. Competitors include Applied Materials, Hitachi High-Tech, and Nova Measuring Instruments.
- Metrology Systems: These systems measure critical process parameters and material properties on wafers, enabling real-time process control and optimization. KLA's metrology solutions are essential for advanced node manufacturing. Competitors include Applied Materials, Hitachi High-Tech, and Nova Measuring Instruments.
- Defect Review Systems: KLA's defect review platforms provide detailed analysis of detected defects, helping engineers understand their root cause and implement corrective actions. These systems are crucial for high-volume manufacturing. Competitors include Applied Materials and Hitachi High-Tech.
- Advanced Packaging Solutions: With the increasing complexity of chip packaging, KLA offers specialized metrology and inspection solutions tailored for advanced packaging technologies, such as 2.5D and 3D IC integration. Competitors include Onto Innovation and Camtek.
Market Dynamics
Industry Overview
KLA operates within the semiconductor equipment industry, a cyclical but highly technological sector driven by the global demand for electronic devices. The industry is characterized by intense R&D, significant capital investment, and a continuous push for miniaturization and performance improvements in chips.
Positioning
KLA is a dominant player in the wafer inspection and metrology market, holding a significant market share. Its competitive advantages stem from its advanced technological capabilities, strong customer relationships with leading chip manufacturers, and a broad portfolio of essential process control solutions.
Total Addressable Market (TAM)
The global semiconductor equipment market is valued in the tens of billions of dollars and is projected to grow steadily. KLA is exceptionally well-positioned within its specific segments of metrology and inspection, which represent a substantial portion of the overall TAM, by providing indispensable tools for advanced chip manufacturing.
Upturn SWOT Analysis
Strengths
- Dominant market share in wafer inspection and metrology.
- Strong technological leadership and R&D capabilities.
- Deep relationships with leading semiconductor manufacturers.
- Broad portfolio of critical process control solutions.
- High switching costs for customers due to integration into manufacturing processes.
Weaknesses
- Dependence on the cyclical nature of the semiconductor industry.
- High R&D costs require continuous innovation.
- Potential for disruptive technologies from competitors.
Opportunities
- Growing demand for advanced chip technologies (AI, 5G, IoT).
- Expansion into emerging markets and new applications.
- Increased complexity in semiconductor manufacturing requiring advanced process control.
- Growth in advanced packaging solutions.
Threats
- Global economic downturns affecting chip demand.
- Geopolitical risks and trade disputes impacting the semiconductor supply chain.
- Intensifying competition from existing and new players.
- Rapid technological obsolescence if R&D falters.
Competitors and Market Share
Key Competitors
- Applied Materials (AMAT)
- ASML Holding (ASML)
- Lam Research (LRCX)
- Tokyo Electron Limited (TOKYO.T)
Competitive Landscape
KLA's primary advantage lies in its specialization and technological leadership in inspection and metrology. While competitors like Applied Materials offer a broader range of equipment, KLA's deep focus in its core areas allows for superior technology development and market dominance. ASML is a leader in lithography, a different but complementary segment. Lam Research and Tokyo Electron are strong in etch and deposition. KLA faces intense competition, but its specialized expertise is a key differentiator.
Major Acquisitions
Orbotech Ltd.
- Year: 2018
- Acquisition Price (USD millions): 3400
- Strategic Rationale: This acquisition significantly expanded KLA's capabilities into the electronics, packaging, and display markets, complementing its core semiconductor business and providing access to new growth areas.
Growth Trajectory and Initiatives
Historical Growth: KLA has experienced significant historical growth, driven by its innovation in metrology and inspection technologies and its indispensable role in semiconductor manufacturing. The company has adapted well to successive generations of chip technology.
Future Projections: Analyst estimates project continued revenue and EPS growth for KLA, fueled by ongoing advancements in semiconductor technology, AI, and the expansion of the semiconductor market. Projections often show mid-to-high single-digit to low double-digit annual growth.
Recent Initiatives: KLA has been actively investing in R&D to develop next-generation inspection and metrology solutions for advanced nodes, new materials, and complex packaging technologies. The company also engages in strategic partnerships and occasional acquisitions to enhance its product portfolio and market reach.
Summary
KLA Corporation is a financially strong and technologically leading company in the indispensable semiconductor process control market. Its dominance in wafer inspection and metrology, coupled with robust R&D and strong customer relationships, positions it well for future growth driven by advancements in chip technology. However, it must remain vigilant against cyclical downturns in the semiconductor industry and continuous innovation from competitors.
Similar Stocks
Sources and Disclaimers
Data Sources:
- KLA Corporation Investor Relations
- SEC Filings (10-K, 10-Q)
- Industry Research Reports (e.g., Gartner, SEMI)
- Financial News and Analysis Websites
Disclaimers:
This JSON output is for informational purposes only and does not constitute financial advice. Data is based on publicly available information and may be subject to change. Investors should conduct their own due diligence 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, designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. The company operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. It offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned wafers; metrology systems 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; wafer 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. The company also provides etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, it offers direct imaging, inspection, optical shaping, inkjet and additive printing, and computer-aided manufacturing and engineering solutions for the PCB 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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