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KLA Corporation (KLAC) Bank of America Global Technology Conference (Transcript) notes.
The take away is the company is doing very well and is outperforming its sector. management are very optimistic despite 'china' and tariffs. KLA has delivered a spectacular recover-there is clearly plenty more growth in the tank.
Strong Growth at the Leading Edge: KLA reported robust growth in demand for leading-edge technologies, particularly at the 2-nanometre node. The company is well-positioned, with a higher market share at this node compared to the 3-nanometre node, driven by increased investment in advanced semiconductor technologies.
Advanced Packaging Revenue Surge(CoWoS-L KLA anticipates significant growth in its advanced packaging segment, projecting USD 850 million in revenue for 2025, up from USD 500 million in 2024. This growth is fuelled by a 70% contribution from process control in advanced packaging, a market expected to grow faster than the core wafer fab equipment (WFE) market, valued at USD 9–10 billion.
Robust Service Business Growth: The service business is expected to achieve low double-digit growth, supported by a 75% contract revenue stream and the extended lifespan of KLA’s tools. This resilience persists despite challenges from restrictions in China, ensuring steady revenue growth. What you could call 'money for old rope'
Financial Performance and Margins: KLA targets a gross margin of 63% in 2026, with a mid-60s target for 2025. The company maintains a 65% incremental gross margin on revenue growth, reflecting sustainable profitability even amidst tariff challenges. The company seeks margin and won't enter low margin segments.
Market Position and Growth Outlook: KLA expects WFE growth to slightly outpace semiconductor revenue growth (projected at 7–8%), with logic foundry WFE and process control growing faster than core WFE. This positions KLA to potentially grow faster than the market, supported by its strong portfolio and unique product capabilities.
Investment in Future Technologies: KLA plans to invest in the next node by 2026, aligning with customer needs for advanced technologies, particularly in AI, high-performance computing, and high-bandwidth memory (HBM). This forward-looking strategy supports long-term growth.
These highlights reflect KLA’s optimistic outlook, underpinned by strategic focus on high-growth areas like advanced packaging and leading-edge technologies.
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Today's KLA weakness. After hitting an all time high it dropped 5% after hours due to 'sector sympathy'. Applied Materials which is in the same sector although completely different business issued a soft outlook (China). It is completely illogical but this is what happens when trading is algho based. Same sector = sell.
AMAT’s weaker outlook is mostly a China mature-node + export licence story. KLA is riding a completely different wave – process control intensity for AI and packaging nodes – and that’s why they’ve guided higher despite seeing the same macro headlines.
To be ignored Amat issued weak guidance (a contraction). two weeks ago KLA issued record guidance-go figure.
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KLAC is +$50 in pre market today-an all time high, after trying to hold the high yesterday, enter the sellers but today it's having another run.
A fabulous business, run by world class executives. Congratulations all shareholders.
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New All Time High for KLA Corporation today
Having bought in originally at $330 in April 2022 +388% or annualised return +49%. Just spectacular.
We will be pulling some weight out of KLAC next week. It's had quite the run
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KLA delivered above expectations
The result overall was solid, fundamentally — AI‑driven semiconductor tool demand continues. Analysts have been positive and even raising targets.
KLA’s share price dropped (~7–8% in extended trading) despite that beat/inline result.The stock had already run so far, so fast, that nothing they reported was going to be good enough.
This echoes a classic “sell the news” dynamic:
The stock was frothy heading into earnings — up big recently (nearly +40% in the last month alone and 130% 1 yr!
That run priced in very high expectations for the print. Net it only moved the price down to what it was on Monday! -
Does PHT still have a element in KLAC? It's up over 600% since I first invested!!
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It does and we paid $33 +821.1% RTQ
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Thanks Adam
