JPMorgan Reiterates Overweight on KLA, Sees $95 EPS by 2030
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Market Share Growth: Analyst Harlan Sur from JPMorgan highlights that KLA's semiconductor equipment market share is projected to reach 58% by 2025, significantly surpassing its nearest competitor, Applied Materials, by 7.6 times, showcasing its strong competitive edge in process control.
- Spending Increase: According to Gartner, semiconductor equipment spending is expected to grow by 11% to $124.5 billion in 2025, with process control inspection spending increasing by 17% to $16.5 billion, indicating KLA's sustained growth potential in this sector.
- Technology-Driven: KLA's process control business has achieved a 20% compound annual growth rate, notably higher than the overall market's 15%, reflecting the increasing demand for enhanced process control driven by advanced manufacturing technologies, further solidifying its market leadership.
- Future Outlook: Analysts believe KLA will continue to benefit from a robust backdrop of leading-edge investments, particularly in optical inspection and advanced packaging, which are expected to further enhance its market share and profitability.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy KLAC?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on KLAC
Wall Street analysts forecast KLAC stock price to fall
20 Analyst Rating
14 Buy
6 Hold
0 Sell
Moderate Buy
Current: 1929.200
Low
1214
Averages
1393
High
1750
Current: 1929.200
Low
1214
Averages
1393
High
1750
About KLAC
KLA Corporation (KLA) develops industry equipment and services. The Company provides advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging, and printed circuit boards. It operates through three segments, which include Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection. The Semiconductor Process Control segment offers a portfolio of inspection, metrology and data analytics products, and related services. The Specialty Semiconductor Process segment develops and sells advanced vacuum deposition and etching process tools. The PCB and Component Inspection segment enables electronic device manufacturers to inspect, test and measure PCBs, flat panel displays, and integrated circuits (ICs) to verify their quality, pattern the desired electronic circuitry on the relevant substrate and perform three-dimensional shaping of metalized circuits on multiple surfaces.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Apple's Developer Conference Boosts Stock Amid AI Strategy Reveal
- Apple Stock Surge: Apple's shares rose over 2% as its Worldwide Developers Conference commenced, with expectations to unveil its artificial intelligence strategy, including updates to Siri, which could further solidify its leadership in the tech industry.
- Wix Lowers Outlook: Wix.com saw its stock drop more than 5% after revising its full-year bookings growth forecast to the low teens percentage rate, down from mid-teens, which may negatively impact market confidence and investor sentiment.
- Crocs Rating Upgrade: Crocs' shares increased by 3% following Baird's upgrade to outperform, indicating a healthier narrative emerging in the North American market, which enhances investor confidence in its future growth prospects.
- Cerebras Stock Surge: Cerebras Systems experienced a 20% stock increase after several Wall Street firms initiated coverage with buy ratings, reflecting strong market confidence in its AI chip technology, potentially boosting its competitiveness in the rapidly evolving AI sector.
See More
JPMorgan Reiterates Overweight on KLA, Sees $95 EPS by 2030
- Market Share Growth: Analyst Harlan Sur from JPMorgan highlights that KLA's semiconductor equipment market share is projected to reach 58% by 2025, significantly surpassing its nearest competitor, Applied Materials, by 7.6 times, showcasing its strong competitive edge in process control.
- Spending Increase: According to Gartner, semiconductor equipment spending is expected to grow by 11% to $124.5 billion in 2025, with process control inspection spending increasing by 17% to $16.5 billion, indicating KLA's sustained growth potential in this sector.
- Technology-Driven: KLA's process control business has achieved a 20% compound annual growth rate, notably higher than the overall market's 15%, reflecting the increasing demand for enhanced process control driven by advanced manufacturing technologies, further solidifying its market leadership.
- Future Outlook: Analysts believe KLA will continue to benefit from a robust backdrop of leading-edge investments, particularly in optical inspection and advanced packaging, which are expected to further enhance its market share and profitability.
See More
US Stocks Rebound Modestly Led by Chipmakers
- Market Rebound: The S&P 500 Index rose by 0.65%, the Dow Jones Industrial Average increased by 0.21%, and the Nasdaq 100 climbed by 1.59%, indicating market resilience following last week's sell-off, particularly driven by strong performances in chipmakers and AI infrastructure stocks.
- Oil Price Volatility: Crude oil prices fell from highs after Iran announced an end to its military operations against Israel, despite initially surging over 4% amid escalating conflict, highlighting the direct impact of geopolitical tensions on market sentiment.
- Interest Rate Expectations: The market is pricing in only a 1% chance of a 25 basis point rate hike at the upcoming FOMC meeting in June, reflecting cautious investor sentiment regarding future monetary policy, especially in light of stronger-than-expected US nonfarm payroll data.
- Stock Performances: In the stock market, Micron Technology surged over 9%, leading gains in the S&P 500 and Nasdaq 100, showcasing the recovery potential of the chip sector, while Nurix Therapeutics jumped over 17% after agreeing with Roche on a deal worth up to $2.3 billion.
See More
US Stocks Plunge Sharply, Tech Sector Under Pressure
- Market Decline: The S&P 500 fell 2.64% and the Nasdaq 100 dropped 4.77%, indicating a significant loss of investor confidence in tech stocks, particularly as AI infrastructure and semiconductor companies faced sell-offs, which could impact future investment strategies.
- Strong Employment Data: US nonfarm payrolls rose by 172,000 in May, significantly exceeding expectations of 88,000, while the unemployment rate held steady at 4.3%, potentially prompting the Fed to consider a rate hike at the upcoming meeting, thereby affecting market liquidity and investor sentiment.
- Rising Bond Yields: The 10-year Treasury yield climbed to 4.55%, a two-week high, reflecting heightened expectations for future rate hikes, which may lead to capital outflows from the stock market, further exacerbating market volatility.
- Tech Stock Retreat: Following Broadcom's disappointing chip sales outlook, Marvell and Micron stocks plummeted over 16% and 13%, respectively, suggesting that the market's overly optimistic sentiment towards tech stocks may be correcting, impacting investor confidence.
See More
US Stock Markets Plunge as Tech Stocks Retreat
- Market Weakness: The S&P 500 index fell by 1.00% and the Nasdaq 100 dropped by 2.08%, both reaching two-week lows, indicating a significant investor rotation out of AI infrastructure and semiconductor stocks, which could impact future investment strategies.
- Strong Employment Data: US nonfarm payrolls rose by 172,000 in May, significantly exceeding expectations of 88,000, with April's figures revised up to 179,000, demonstrating economic resilience that may prompt the Fed to consider a rate hike in the upcoming meeting.
- Rising Bond Yields: The 10-year Treasury note yield reached a two-week high of 4.54%, reflecting heightened market expectations for a Fed interest rate increase, which may lead investors to reassess risks in the stock market.
- International Market Declines: European and Asian stock markets are generally lower, with China's Shanghai Composite falling to a seven-week low, indicating that global economic uncertainties could have a ripple effect on the US market.
See More
US Stocks Decline as Tech Sector Pulls Back
- US Stock Index Decline: The S&P 500 index fell by 0.90%, the Dow Jones Industrial Average dropped by 0.32%, and the Nasdaq 100 decreased by 1.85%, indicating investor rotation away from AI infrastructure and semiconductor stocks, which pressured the market and pushed it to a 1.5-week low.
- Employment Data Impact: US May nonfarm payrolls rose by 172,000, exceeding expectations of 88,000, while April's figures were revised up to 179,000, leading the 10-year T-note yield to rise to a two-week high of 4.54%, intensifying speculation about a Fed rate hike.
- Tech Sector Pullback: Following Broadcom's disappointing chip sales outlook, chipmakers and AI infrastructure stocks retreated for a second day, with ON Semiconductor and ARM Holdings both down over 8%, reflecting concerns over excessive optimism in the AI trade.
- International Market Weakness: Overseas stock markets were generally lower, with the Euro Stoxx 50 down 0.17% and China's Shanghai Composite falling to a seven-week low, highlighting the impact of global economic uncertainty on market sentiment.
See More
Apple's Developer Conference Boosts Stock Amid AI Strategy Reveal
- Apple Stock Surge: Apple's shares rose over 2% as its Worldwide Developers Conference commenced, with expectations to unveil its artificial intelligence strategy, including updates to Siri, which could further solidify its leadership in the tech industry.
- Wix Lowers Outlook: Wix.com saw its stock drop more than 5% after revising its full-year bookings growth forecast to the low teens percentage rate, down from mid-teens, which may negatively impact market confidence and investor sentiment.
- Crocs Rating Upgrade: Crocs' shares increased by 3% following Baird's upgrade to outperform, indicating a healthier narrative emerging in the North American market, which enhances investor confidence in its future growth prospects.
- Cerebras Stock Surge: Cerebras Systems experienced a 20% stock increase after several Wall Street firms initiated coverage with buy ratings, reflecting strong market confidence in its AI chip technology, potentially boosting its competitiveness in the rapidly evolving AI sector.
See More
JPMorgan Reiterates Overweight on KLA, Sees $95 EPS by 2030
- Market Share Growth: Analyst Harlan Sur from JPMorgan highlights that KLA's semiconductor equipment market share is projected to reach 58% by 2025, significantly surpassing its nearest competitor, Applied Materials, by 7.6 times, showcasing its strong competitive edge in process control.
- Spending Increase: According to Gartner, semiconductor equipment spending is expected to grow by 11% to $124.5 billion in 2025, with process control inspection spending increasing by 17% to $16.5 billion, indicating KLA's sustained growth potential in this sector.
- Technology-Driven: KLA's process control business has achieved a 20% compound annual growth rate, notably higher than the overall market's 15%, reflecting the increasing demand for enhanced process control driven by advanced manufacturing technologies, further solidifying its market leadership.
- Future Outlook: Analysts believe KLA will continue to benefit from a robust backdrop of leading-edge investments, particularly in optical inspection and advanced packaging, which are expected to further enhance its market share and profitability.
See More
US Stocks Rebound Modestly Led by Chipmakers
- Market Rebound: The S&P 500 Index rose by 0.65%, the Dow Jones Industrial Average increased by 0.21%, and the Nasdaq 100 climbed by 1.59%, indicating market resilience following last week's sell-off, particularly driven by strong performances in chipmakers and AI infrastructure stocks.
- Oil Price Volatility: Crude oil prices fell from highs after Iran announced an end to its military operations against Israel, despite initially surging over 4% amid escalating conflict, highlighting the direct impact of geopolitical tensions on market sentiment.
- Interest Rate Expectations: The market is pricing in only a 1% chance of a 25 basis point rate hike at the upcoming FOMC meeting in June, reflecting cautious investor sentiment regarding future monetary policy, especially in light of stronger-than-expected US nonfarm payroll data.
- Stock Performances: In the stock market, Micron Technology surged over 9%, leading gains in the S&P 500 and Nasdaq 100, showcasing the recovery potential of the chip sector, while Nurix Therapeutics jumped over 17% after agreeing with Roche on a deal worth up to $2.3 billion.
See More
US Stocks Plunge Sharply, Tech Sector Under Pressure
- Market Decline: The S&P 500 fell 2.64% and the Nasdaq 100 dropped 4.77%, indicating a significant loss of investor confidence in tech stocks, particularly as AI infrastructure and semiconductor companies faced sell-offs, which could impact future investment strategies.
- Strong Employment Data: US nonfarm payrolls rose by 172,000 in May, significantly exceeding expectations of 88,000, while the unemployment rate held steady at 4.3%, potentially prompting the Fed to consider a rate hike at the upcoming meeting, thereby affecting market liquidity and investor sentiment.
- Rising Bond Yields: The 10-year Treasury yield climbed to 4.55%, a two-week high, reflecting heightened expectations for future rate hikes, which may lead to capital outflows from the stock market, further exacerbating market volatility.
- Tech Stock Retreat: Following Broadcom's disappointing chip sales outlook, Marvell and Micron stocks plummeted over 16% and 13%, respectively, suggesting that the market's overly optimistic sentiment towards tech stocks may be correcting, impacting investor confidence.
See More
US Stock Markets Plunge as Tech Stocks Retreat
- Market Weakness: The S&P 500 index fell by 1.00% and the Nasdaq 100 dropped by 2.08%, both reaching two-week lows, indicating a significant investor rotation out of AI infrastructure and semiconductor stocks, which could impact future investment strategies.
- Strong Employment Data: US nonfarm payrolls rose by 172,000 in May, significantly exceeding expectations of 88,000, with April's figures revised up to 179,000, demonstrating economic resilience that may prompt the Fed to consider a rate hike in the upcoming meeting.
- Rising Bond Yields: The 10-year Treasury note yield reached a two-week high of 4.54%, reflecting heightened market expectations for a Fed interest rate increase, which may lead investors to reassess risks in the stock market.
- International Market Declines: European and Asian stock markets are generally lower, with China's Shanghai Composite falling to a seven-week low, indicating that global economic uncertainties could have a ripple effect on the US market.
See More
US Stocks Decline as Tech Sector Pulls Back
- US Stock Index Decline: The S&P 500 index fell by 0.90%, the Dow Jones Industrial Average dropped by 0.32%, and the Nasdaq 100 decreased by 1.85%, indicating investor rotation away from AI infrastructure and semiconductor stocks, which pressured the market and pushed it to a 1.5-week low.
- Employment Data Impact: US May nonfarm payrolls rose by 172,000, exceeding expectations of 88,000, while April's figures were revised up to 179,000, leading the 10-year T-note yield to rise to a two-week high of 4.54%, intensifying speculation about a Fed rate hike.
- Tech Sector Pullback: Following Broadcom's disappointing chip sales outlook, chipmakers and AI infrastructure stocks retreated for a second day, with ON Semiconductor and ARM Holdings both down over 8%, reflecting concerns over excessive optimism in the AI trade.
- International Market Weakness: Overseas stock markets were generally lower, with the Euro Stoxx 50 down 0.17% and China's Shanghai Composite falling to a seven-week low, highlighting the impact of global economic uncertainty on market sentiment.
See More
