KLA Corp

KLAC: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
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KLA Earnings: Cutting-Edge Chip Capacity Is Driving Strong Demand; Shares Look Fairly Valued

William Kerwin

Oct 31, 2024

We maintain our $670 fair value estimate for shares of wide-moat KLA as we maintain our strong medium-term growth thesis for the firm. KLA posted great September-quarter results and provided strong guidance for the December quarter. We see the firm benefiting from tremendous cutting-edge chip demand that drives higher demand for KLA’s process control systems. We believe the pace of innovation at the cutting edge—for both logic and memory chips—is accelerating, leading to rapid growth for KLA’s revenue. We expect strong growth to continue through calendar 2025. We see shares as fairly valued for this high-quality chip equipment titan.

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KLA Corp

KLA Earnings: Cutting-Edge Chip Capacity Is Driving Strong Demand; Shares Look Fairly Valued

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