BN · rank #9 · 2026-10-22
KLAC
NASDAQ · $213.28B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of the factors below; drives the rank. | 0.37 |
|---|---|
| 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. | +42.2% |
| Last EPS surprise Most recent reported EPS versus consensus. | +5% |
| Market cap (USD) | $213.28B |
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 process-control and yield-management equipment supplier for wafer fabrication and advanced packaging, generating $13.58B in fiscal 2026 revenue with ~50–57% share in advanced-packaging process control.
Rationale
The bottleneck-solver thesis is directly reinforced — KLA's inspection and metrology tools are a non-optional chokepoint in advanced-packaging yield ramp for AI chips, with advanced-packaging revenue share tripling from ~2% in 2023 to ~7–8% in 2026, providing structural demand visibility beyond sentiment.
Material risks
- 1U.S. export controls on China (~30% of FY2026 revenue) could trigger a step-down in backlog and revenue while simultaneously accelerating Chinese in-house inspection/metrology development, the one scenario that directly erodes KLA's sole-supplier moat in its core niche.
- 2Earnings are reported 6 days after the as-of date (2026-10-28), creating binary event risk against a $213B market cap where any guidance cut on China exposure or advanced-packaging demand timing would compress the 42% analyst upside rapidly.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.