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Based in Milpitas, California, KLA Corporation (KLAC) is a global leader in process diagnostics and control equipment for the semiconductor industry. With a market cap of $107.5 billion, the company provides essential solutions for semiconductor fabrication, including inspection, metrology, and yield management tools.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and KLA Corporation fits this criterion perfectly, exceeding the mark. KLA Corporation stands out for its support in all phases of semiconductor manufacturing - from R&D through to high-volume production - by ensuring precision and quality in wafer, reticle, integrated circuit (IC), and packaging processes.
However, the chip tools maker dipped marginally from its 52-week high of $824.96. Shares of the KLA Corporation have surged 18% over the past three months, outperforming the broader S&P 500 Technology Sector SPDR’s (XLK) 6.7% gains over the same time frame.
Over the longer term, KLAC stock is up 41.8% on a YTD basis, outpacing XLK’s 17% gains. Moreover, shares of KLA Corporation have gained 73.4% over the past 52 weeks, compared to XLK’s 32.8% gains over the same time frame.
To confirm the bullish price trend, KLAC stock has been trading above its 200-day moving average since June last year and remained mostly above its 50-day moving average during this period despite some fluctuations.
KLAC has outperformed due to high demand for its semiconductor equipment amid global digitalization, increased chip demand, and supply chain constraints. Moreover, the stock surged nearly 5% on April 26 following its strong fiscal Q3 performance as the company forecasted higher-than-expected Q4 revenue, driven by robust demand for its chip-making tools, particularly for AI applications.
To emphasize the stock’s outperformance, top rival Applied Materials (AMAT) has gained 68.3%, underperforming KLAC over the past 52 weeks. However, shares of Applied Materials are up 45.4% on a YTD basis, overshadowing KLAC stock.
Despite the stock’s impressive price action, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 24 analysts covering the stock, and it is currently trading above the mean price target of $755.95.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
