BN · rank #7 · 2026-10-20
KLAC
NASDAQ · $217.15B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.33 |
|---|---|
| Forward revenue growth Consensus forward revenue growth. | +18.9% |
| Forward net margin Consensus forward net margin. | +37.1% |
| Net margin TTM Trailing twelve month net margin. | +35.6% |
| Margin expansion Forward minus trailing net margin (percentage points). | +1.5% |
| Forward PEG Forward P/E to growth. Below 1 is cheap for the growth. | 1.80 |
| Debt / FCF Net debt relative to free cash flow. Lower is safer. | 1.63× |
| Analyst upside Spread between the consensus 12m target and the current price. | +39.7% |
| Last EPS surprise Most recent reported EPS versus consensus. | +5% |
| Market cap (USD) | $217.15B |
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 designs and sells process-control, inspection, and metrology equipment that semiconductor fabs depend on to manage yield across leading-edge logic, memory, and advanced-packaging workflows.
Rationale
KLA's ~50–57% advanced-packaging process-control share, rising advanced-packaging revenue mix (2% in 2023 to 7–8% in 2026), and $4.0B Q1 2027 guidance directly confirm the bottleneck-solver thesis—its tools are a non-discretionary gating item for AI-driven advanced-packaging ramps, not a sentiment ride.
Material risks
- 1U.S. export controls on China (~30% of FY2026 revenue) can abruptly shrink addressable backlog while simultaneously accelerating Chinese domestic equipment development, the most direct path to eroding KLA's sole-source process-control position.
- 2Advanced-packaging inspection and metrology is an emerging niche where competing tool vendors and customer in-house metrology programs could commoditize KLA's currently dominant share before the revenue mix shift fully matures.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.