KLA Corp

KLAC: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$634.00	Rxw	Vxfxnkssj

KLA Earnings: Mixed Results Don’t Deter Our Long-Term Positive Thesis on Process Control Leader

Abhinav Davuluri

Apr 27, 2023

KLA reported fiscal third-quarter sales at the high end of management’s guidance range. While KLA is not immune to the weaker demand environment for wafer fab equipment, we expect the wide-moat process control leader to outperform the overall WFE market in 2023, thanks to its greater exposure to leading-edge logic and foundry customers such as TSMC, Samsung, and Intel, who will continue to ramp new process technologies despite macroeconomic headwinds. We are maintaining our fair value estimate of $410 per share and we see shares as modestly undervalued.

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