- Believing softer-than-expected foundry demand will take a toll in Q4 and 2015, ISI has downgraded KLA-Tencor (KLAC -0.5%) to Hold from Strong Buy. Shares ticked lower in spite of a 1% gain for the Nasdaq.
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KLA blamed light 14nm equipment orders from a foundry client (likely Samsung or Globalfoundries) for its soft calendar Q3 guidance. But the company also forecast demand would pick up in Q4, and said it was optimistic about 2015 (big 16nm/14nm investments have been expected).
- In addition to KLA, David Einhorn favorite Lam Research (LRCX +0.6%) has heavy foundry exposure. Einhorn and others have argued Lam is especially well-exposed to investments in technologies such as 3D transistors, multi-patterning, and 3D NAND flash, which are set to receive a disproportionate share of capex in the coming years.