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KLA Corporation (KLAC) Stock Analysis

Range Bound setup · Temp Headwind edge

SellModerate Confidence

Technology · Semiconductor Equipment & Materials

Sell if holding. Analyst target reached at $1795.00 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: Taiwan Semiconductor Manufacturing Company Limited.

KLA Corporation supplies process control and process-enabling equipment for semiconductor, PCB, and advanced packaging manufacturing across three segments: Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection. International revenues... Read more

$1795.00+5.3% A.UpsideScore 5.2/10#13 of 25 Semiconductor Equipment & Materials
QualityF-score7 / 9FCF yield1.23%
IncomeYield0.51%(5y avg 0.96%)Payout21.52%sustainable
Stop $1675.88Target $1898.15(resistance)A.R:R -0.8:1
Analyst target$1851.69+3.2%29 analysts
$1898.15our TP
$1795.00price
$1851.69mean
$1500
$2100

Sell if holding. Analyst target reached at $1795.00 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: Taiwan Semiconductor Manufacturing Company Limited. Chart setup: RSI 43 mid-range, Bollinger mid-band. Score 5.2/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 74d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

Recent Developments — KLA Corporation

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
V7 flight-to-quality bonus: +0.5 (Q=8.7 in RISK_OFF)
Strong earnings beat streak (4/4)
High-quality business
Risks
Concentration risk — Customer: Taiwan Semiconductor Manufacturing Company Limited
Analyst target reached - limited upside remaining
Sector modifier (Technology): -0.8

Key Metrics

P/E (TTM)51.0
P/E (Fwd)36.2
Mkt Cap$235.7B
EV/EBITDA40.5
Profit Mgn35.7%
ROE95.0%
Rev Growth11.5%
Beta1.50
Dividend0.51%
Rating analysts36

Quality Signals

Piotroski F7/9MoatWideCompounder

Concentration Risks(10-K Item 1A)

  • HIGHCustomerTaiwan Semiconductor Manufacturing Company Limited
    10-K Item 1: 'Taiwan Semiconductor Manufacturing Company Limited' accounted for more than 10% of total revenues in fiscal years 2025, 2024 and 2023
  • MEDIUMGeographicChina33%
    10-K Item 1A: 'Our revenue from sales of products and provision of services to customers in China was 33%, 43% and 27% for fiscal years 2025, 2024 and 2023, respectively'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Ps
0.0
Ev Ebitda
0.0
Pe
2.4
Forward Pe
2.9
Analyst Target
4.0
Peg Ratio
4.5
Forward P/E: 36.2xPEG: 1.98Expensive valuation

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Macd
0.0
Obv
1.0
Volume
2.9
Rsi
5.5
Ma Position
6.0
Volume distribution (falling OBV)Above 200-day MA
GatesMomentum 3.1<4.5A.R:R -0.8=NEGATIVEInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 74d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
43 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $1643.90Resistance $1936.89

Price Targets

$1676
$1898
A.Upside+5.7%
A.R:R-0.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-7.5% upside)
! Momentum score 3.1/10 — below 4.5 minimum
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-30 (74d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is KLAC stock a buy right now?

Sell if holding. Analyst target reached at $1795.00 — A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Customer: Taiwan Semiconductor Manufacturing Company Limited. Chart setup: RSI 43 mid-range, Bollinger mid-band. Prior stop was $1675.88. Score 5.2/10, moderate confidence.

What is the KLAC stock price target?

Take-profit target: $1898.15 (+5.3% upside). Prior stop was $1675.88. Stop-loss: $1675.88.

What are the risks of investing in KLAC?

Concentration risk — Customer: Taiwan Semiconductor Manufacturing Company Limited; Analyst target reached - limited upside remaining; Sector modifier (Technology): -0.8.

Is KLAC overvalued or undervalued?

KLA Corporation trades at a P/E of 51.0 (forward 36.2). TrendMatrix value score: 2.6/10. Verdict: Sell.

What do analysts say about KLAC?

36 analysts cover KLAC with a consensus score of 3.9/5. Average price target: $1852.

What does KLA Corporation do?KLA Corporation supplies process control and process-enabling equipment for semiconductor, PCB, and advanced packaging...

KLA Corporation supplies process control and process-enabling equipment for semiconductor, PCB, and advanced packaging manufacturing across three segments: Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection. International revenues accounted for approximately 89% of total revenues in fiscal 2025, with China representing 33% of revenues that year.

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