KLA Corporation

KLA Corp managed to deliver an all-around beat in its last quarterly results, demonstrating steady execution despite the supply chain issues. The company has shown some flexibility to meet client demands and has benefited from the diversity of end demand across technological nodes, KLA does have a high level of scalability of its product platforms, and given the management projections with respect to the development in their service business, it is likely that they will profit over time from releasing these reserves when industry growth picks up again. Their customers also continue to invest in technological transitions regardless of the business situation which is a good sign. Among new launches, KLA Corporation introduced the Axion T2000 X-ray metrology equipment for memory chip producers that could become a good revenue driver. We give KLA a ‘Hold’ rating with a revised target price.