When people think of the semiconductor industry, they often think of popular names like Taiwan Semiconductor, NVIDIA , Advanced Micro Devices, or Intel. However, the semiconductor equipment manufacturing market doesn't get as much hype, even though it is a good industry. That's where companies like KLA Corporation (KLAC) come in. Check out our research report on KLAC.
KLA Corporation designs and manufactures semiconductor equipment. It is a leader in process control & yield management and has seen its market share slowly increase since 2010.
The semiconductor equipment market is expected to grow at a CAGR of 8% between the period of 2021-2026. The consumer electronics segment is the fastest-growing segment within the industry, primarily driven by the growth of smartphones. In addition, smartwatches are another major catalyst contributing to the industry’s growth.
We believe KLAC exhibits strong financials and has good growth prospects. Thus, it is worth taking a closer look at. In this article, we'll talk about the industry KLAC operates in, analyze KLAC's historical financials, compare it to peers, and do a DCF valuation.
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