KLA Corp

KLAC: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$765.00	Tlrjp	Mbqbdbncw

KLA Dominates the Process Control Section of the WFE Market and Merits a Wide Moat

William Kerwin

Oct 27, 2023

Business Strategy and Outlook

KLA is one of the largest providers in the world of wafer fabrication equipment for semiconductors, specializing in process control, where we expect its unmatched breadth and depth to defend and increase its market share. We believe trends toward higher complexity in chips will drive increasing demand and strong pricing for KLA’s equipment, including artificial intelligence and new technologies like high-bandwidth memory. We particularly like that KLA boasts the highest profit margins out of any WFE firm under our coverage.

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