"The stock's recent surge reflects broader enthusiasm around AI infrastructure spending. Multiple analysts upgraded KLA in recent weeks, with Wells Fargo and Morgan Stanley citing strong demand for inspection and metrology tools needed for 2nm, 3nm, and 5nm process technologies. Jim Cramer highlighted KLA as facing "a shortage that can't be met," positioning the company as a safer play on chip equipment demand than memory stocks."
"The company projected this segment would exceed $925 million in revenue for 2025, representing 70% year-over-year growth. That matters because advanced packaging is critical for chiplet architectures powering AI systems. If KLA can confirm this trajectory continues into 2026, it validates the thesis that AI infrastructure spending has staying power beyond the current hype cycle. As a note, Lam Research (Nasdaq: LRCX) reported last night and highlighted advanced packaging's growth potential in 2026. They believe their advanced packaging unit can grow 40% this year."
KLA Corporation reports second-quarter fiscal 2026 earnings after the close. Shares rose 29% in the past month to an all-time high of $1,581 on January 27, creating elevated investor expectations. The company has beaten revenue estimates seven consecutive quarters with an average surprise of 5.2%, including recent EPS of $8.81 versus $8.61 and prior $9.38 versus $8.55. Analysts cite strong demand for inspection and metrology tools for 2nm, 3nm, and 5nm process technologies. KLA projected advanced packaging revenue above $925 million for 2025, a 70% year-over-year increase, which is critical for chiplet architectures powering AI systems. Lam Research also noted advanced packaging growth potential.
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