KLA Corporation (KLAC)

In the past six months, KLA Corp. stock has shown strong performance, gaining 46.5% since the start of the year and hitting a new 52-week high. KLA reported robust Q1 and Q2 fiscal year 2025 earnings, surpassing forecasts due to strong demand in advanced packaging and AI-related semiconductor equipment. KLA declared regular cash dividends and increased its share repurchase authorization. KLA invested in operations in Wales with the opening of a new R&D and manufacturing facility. Analysts have generally maintained a positive outlook, with some raising price targets.

KLA Corporation's business is cyclical, not seasonal, and is closely tied to the capital expenditures of semiconductor manufacturers. KLA's sales show a strong, direct correlation with the global semiconductor industry's capital expenditure. The company is currently in an upcycle, benefiting from the increasing demand for advanced semiconductors driven by technologies like generative AI and advanced packaging. The transition of a considerable portion of KLA's installed base from warranty to service contracts is also expected to contribute to a robust increase in service segment revenue.

KLA Corporation is a global manufacturer of semiconductor wafer fabrication equipment, specializing in process control and yield management solutions. The company's core business involves designing, manufacturing, and marketing inspection and metrology equipment crucial for ensuring chip quality and reliability. KLA's major products include inspection and metrology systems for defect detection and measurement, process control solutions for achieving target yields, specialty semiconductor process tools, PCB, display, and component inspection solutions, and services and software for equipment support and manufacturing process optimization.

KLA Corp. operates globally across the Americas, Asia-Pacific, the Middle East, and Europe, with manufacturing and research facilities in the United States, Asia Pacific, and Europe. The company maintains a global direct sales force in North America, Asia Pacific, Europe, and Japan. In fiscal year 2023, KLA's revenue distribution was 27% in China, 24% in Taiwan, 18% in Korea, 12% in North America, 9% in Japan, 6% in Europe, and 4% in the Rest of Asia.

KLA Corporation maintains a strong brand reputation, marked by its precision and innovation in the semiconductor equipment industry. KLA was voted onto Time Magazine's World's Best Companies list for the second consecutive year. There is no readily available information indicating specific negative events that have significantly affected KLA Corp.'s brand reputation in the past year.

KLA Corporation's ownership is distributed among institutional investors, individual investors, and company insiders. Institutional investors hold approximately 84.27% of KLA stock, with major shareholders including Vanguard Group Inc. and BlackRock, Inc. Kenneth Levy is the largest individual KLA shareholder, owning 4.01% of the company. Company insiders own approximately 5.88% of the company's shares.