BN · rank #4 · 2026-07-21
KLAC
NASDAQ · $271.18B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.85 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +27.3% |
| Forward net margin Consensus forward net margin. | +38.8% |
| Net margin TTM Trailing twelve month net margin. | +35.7% |
| Margin expansion Forward minus trailing net margin (percentage points). | +3.1% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 2.19 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 1.53× |
| Analyst upside Spread between the consensus 12m target and the current price. | +13.0% |
| Last EPS surprise Most recent reported EPS versus consensus. | +2% |
| Market cap (USD) | $271.18B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
KLA Corporation is the dominant provider of process-control inspection and metrology equipment for semiconductor manufacturing, with advanced packaging emerging as an ~$925M and rapidly growing revenue vector tied directly to AI chip demand.
Rationale
KLA's near-monopoly in yield-critical process-control tools makes it a textbook bottleneck solver — customers cannot skip its inspection steps at advanced nodes or in advanced packaging, supporting the 27% forward revenue growth and 38.8% net margin signals with structural rather than sentiment-driven demand.
Material risks
- 1Major customers (TSMC, Samsung, Intel) expanding in-house metrology and inspection capabilities could erode KLA's sole-source positioning in advanced packaging, the fastest-growing segment underpinning the forward growth signal.
- 2Tightening U.S. export controls on semiconductor capital equipment shipments to China — a material revenue geography for KLA — could disrupt order flow and installed-base expansion, creating a gap between the model's 27% growth assumption and realized revenue.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.