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Upturn AI SWOT - About
KLAC 
KLA-Tencor Corporation (KLAC)
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Upturn Advisory Summary
08/28/2025: KLAC (1-star) is currently NOT-A-BUY. Pass it for now.
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 $929.28
1 Year Target Price $929.28
| 11 | Strong Buy |
| 6 | Buy |
| 10 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 43.06% | Avg. Invested days 59 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  5.0 | Stock Returns Performance  3.0 |
| Profits based on simulation | Last Close 08/28/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 117.97B USD | Price to earnings Ratio 28.73 | 1Y Target Price 929.28 |
Price to earnings Ratio 28.73 | 1Y Target Price 929.28 | ||
Volume (30-day avg) 28 | Beta 1.43 | 52 Weeks Range 548.81 - 957.18 | Updated Date 08/29/2025 |
52 Weeks Range 548.81 - 957.18 | Updated Date 08/29/2025 | ||
Dividends yield (FY) 0.76% | Basic EPS (TTM) 30.35 |
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 33.41% | Operating Margin (TTM) 42.58% |
Management Effectiveness
Return on Assets (TTM) 19.9% | Return on Equity (TTM) 100.78% |
Valuation
Trailing PE 28.73 | Forward PE 25.19 | Enterprise Value 119567123780 | Price to Sales(TTM) 9.7 |
Enterprise Value 119567123780 | Price to Sales(TTM) 9.7 | ||
Enterprise Value to Revenue 9.84 | Enterprise Value to EBITDA 22.39 | Shares Outstanding 131961000 | Shares Floating 131614312 |
Shares Outstanding 131961000 | Shares Floating 131614312 | ||
Percent Insiders 0.12 | Percent Institutions 93.81 |
Upturn AI SWOT
KLA-Tencor Corporation
Company Overview
History and Background
KLA-Tencor Corporation, founded in 1997 through the merger of KLA Instruments and Tencor Instruments, has become a leading supplier of process control and yield management systems for the semiconductor and related nanoelectronics industries. Its innovations have helped drive advancements in chip manufacturing, improving device performance and reliability.
Core Business Areas
- Semiconductor Process Control: Provides defect inspection, metrology, and process control solutions for wafer fabrication, helping manufacturers identify and address issues early in the manufacturing process.
- PCB, Display, and Component Inspection: Offers inspection and metrology systems for the production of printed circuit boards (PCBs), displays, and other electronic components.
- Service: Offers installation, training, maintenance, and consulting services to support its customers' equipment and processes.
Leadership and Structure
KLA-Tencor is led by CEO Rick Wallace. The company has a functional organizational structure, with departments such as engineering, sales, marketing, and finance reporting to executive leadership.
Top Products and Market Share
Key Offerings
- Market Share: KLA-Tencor has over 50% market share in eBeam inspection systems.
- Revenue Estimation: Estimates show around 30% of overall revenue.
- Wafer Inspection Systems (eBeam): These systems use electron beams to detect defects on semiconductor wafers at various stages of production. KLA has a dominant market share in e-beam inspection. Competitors include Applied Materials and ASML.
- Market Share: KLA-Tencor has around 50% market share in optical inspection systems.
- Optical Inspection Systems: These systems use light to detect defects and measure critical dimensions on semiconductor wafers. KLA is a leader in this segment. Competitors include Applied Materials, ASML and Nova.
- Revenue Estimation: Estimates show around 50% of overall revenue.
- Market Share: Estimated at approximately 30-40% in specific sub-segments
- Metrology Systems: These systems measure various parameters of semiconductor wafers, such as film thickness, stress, and composition. Market Share varies depending on specific metrology applications. Competitors include Nova Measuring Instruments and Rudolph Technologies (now part of Onto Innovation).
- Revenue Estimation: Estimates show around 20% of overall revenue.
Market Dynamics
Industry Overview
The semiconductor equipment industry is highly cyclical and driven by factors such as technological advancements, capacity expansions, and global economic conditions. Increased complexity in chip manufacturing drives demand for advanced inspection and metrology solutions.
Positioning
KLA-Tencor holds a leading position in the process control and yield management market. Its competitive advantages include its advanced technology, broad product portfolio, strong customer relationships, and extensive global service network.
Total Addressable Market (TAM)
The TAM for semiconductor equipment is estimated to be tens of billions of dollars annually. KLA-Tencor is well-positioned to capture a significant share of this market due to its technological leadership and established customer base.
Upturn SWOT Analysis
Strengths
- Leading market share in process control
- Strong technology portfolio
- High barriers to entry
- Strong customer relationships
- High R&D investment
Weaknesses
- Dependence on the cyclical semiconductor industry
- High concentration of revenue among a few key customers
- Exposure to geopolitical risks
- Potential for technology disruption
Opportunities
- Growth in advanced packaging
- Expansion into adjacent markets
- Increased adoption of AI in semiconductor manufacturing
- Growing demand for compound semiconductors
Threats
- Intense competition
- Technological obsolescence
- Economic downturns
- Geopolitical instability
- Supply chain disruptions
Competitors and Market Share
Key Competitors
- ASML (ASML)
- Applied Materials (AMAT)
- Nova Measuring Instruments (NVMI)
- Onto Innovation (ONTO)
Competitive Landscape
KLA-Tencor's advantages include its broad product portfolio and leading technology. Disadvantages include its dependence on the semiconductor cycle and exposure to intense competition.
Major Acquisitions
Orbotech Ltd.
- Year: 2019
- Acquisition Price (USD millions): 3400
- Strategic Rationale: Expanded KLA-Tencor's presence in the PCB, display, and packaging markets.
Growth Trajectory and Initiatives
Historical Growth: KLA-Tencor has experienced cyclical growth, with periods of rapid expansion followed by slower growth or contraction.
Future Projections: Analysts project continued growth for KLA-Tencor, driven by increasing demand for advanced semiconductor manufacturing equipment. Estimates for revenue range from single to double digit growth over the next 5 years
Recent Initiatives: KLA-Tencor has been investing in R&D to develop new technologies for advanced packaging, EUV lithography, and other emerging areas. Acquisition of smaller companies as well
Summary
KLA-Tencor is a leader in process control within the semiconductor industry, demonstrating strong financials and technological prowess. Its dependency on the cyclical semiconductor market requires careful consideration, especially concerning competitors and macro-economic influences. Expansion opportunities such as advanced packaging and leveraging AI could allow for growth. Strong shareholder returns should be anticipated due to share repurchase strategies.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Investor Presentations
- Analyst Reports
- Third-Party Market Research Reports
Disclaimers:
This analysis is based on publicly available information and should not be considered financial advice. Market conditions and company performance are subject to change.
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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