KLA: Stock Perfectly Priced

Nov. 28, 2023 2:00 PM ETKLA Corporation (KLAC) StockKLAC
Khaveen Investments
7.77K Followers

Summary

  • KLA's strong profitability remains a strong feature of the company, generating 20%+ free cash flow margins.
  • Its large exposure to legacy nodes may seem like a sustainability issue but has proved to provide stable revenues.
  • The company continues to build incremental market share gains in the overall semiconductor equipment market, cementing itself as a key player in the value chain.

Close-up of Silicon Die are being Extracted from Semiconductor Wafer and Attached to Substrate by Pick and Place Machine. Computer Chip Manufacturing at Fab. Semiconductor Packaging Process.

SweetBunFactory

In our previous analysis, we highlighted KLA Corporation's (NASDAQ:KLAC) process control equipment, emphasizing its patterning and wafer inspection segments, which contribute 44% of total revenues at a 33.3% average growth rate. We believe the shift to high NA EUV benefits KLA's Wafer

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7.77K Followers
Khaveen Investments is a global Investment Advisory Firm dedicated to serving the investment needs of clients worldwide including high-net-worth individuals, corporations, associations, and institutions. We provide comprehensive services ranging from market and security research to business valuation and wealth management. Our flagship Macroquantamental Hedge Fund maintains a diversified portfolio with exposure to hundreds of investments across various asset classes, geographies, sectors, and industries. We employ a multifaceted investment approach that integrates top-down and bottom-up analysis, blending three core strategies: global macro, fundamental, and quantitative. Our core expertise lies in disruptive technologies that are reshaping the landscape of modern industries including Artificial Intelligence, Cloud Computing, 5G, Autonomous and Electric Vehicles, FinTech, Augmented and Virtual Reality, and the Internet of Things (IoT).www.khaveen.com

Analyst’s Disclosure:I/we have a beneficial long position in the shares of KLAC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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