KLA Corporation

This is our first report on KLA Corporation, a well-known provider of process control and yield management solutions to the semiconductors industry and other electronics businesses. The company delivered an all-around beat in the last quarter with $2.5 billion in revenue that exceeded the management guidance range and increased by 29% year over year and 9% sequentially. Strong customer demand across key product categories, macroeconomic uncertainties, and the effects of consumer demand are factors driving this performance. The company also carried out investments in cutting-edge technologies and focused on the rising demand for legacy nodes. Their WFE category is expected to develop steadily over time due to all of these factors. The management’s emphasis on investing in innovation to promote differentiation through a distinct portfolio of products and solutions has been a major driver. Despite macroeconomic and supply chain headwinds, KLA continues to focus on addressing the most pressing process control concerns. We initiate coverage on the stock with a ‘Buy’ rating.