BN · rank #4 · 2026-07-27
KLAC
NASDAQ · $275.00B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.82 |
|---|---|
| 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. | 2.16 |
| 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. | +11.2% |
| Last EPS surprise Most recent reported EPS versus consensus. | +2% |
| Market cap (USD) | $275.00B |
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 semiconductor process control equipment supplier, providing inspection and metrology tools critical for yield at advanced nodes, high-bandwidth memory, and advanced packaging.
Rationale
KLA's effective sole-source status in process control inspection, deep customer process integration, and direct exposure to AI-driven HBM and advanced packaging capex structurally validate the bottleneck-solver thesis with 27% forward revenue growth and ~39% net margins supporting the composite score.
Material risks
- 1China export-control escalation represents the most acute near-term thesis disruptor, as a meaningful share of KLA's revenue is China-exposed and incremental restrictions could force order cancellations that compress the guided high-teens fiscal 2026 growth trajectory before the Q4 print on July 28.
- 2Leading foundry and memory customers (TSMC, Samsung, SK Hynix) investing in proprietary in-house metrology and inspection capabilities could erode KLA's sole-source pricing power and multi-quarter order visibility over a 3–5 year horizon.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 2 of 3 voted to proceed.