KLAC

ASML Holding ASML posted solid second-quarter 2026 results, with both the top and bottom lines improving year over year as well as beating the Zacks Consensus Estimate. The company witnessed improved gross margin and an increase in backlog.Shares of ASML have gained 25.1% in the past three months, outperforming the industry, its sector, as well as the Zacks S&P 500 composite in the same time frame. ASML shares are trading at a discount to their 52-week high. Image Source: Zacks Investment Research The company is a critical player in the global semiconductor industry, maintaining a dominant position in extreme ultraviolet (EUV) lithography systems. Industry prospects remain strong, fueled by rising AI-driven infrastructure spending that is boosting demand for advanced logic and memory chips. Supported by its comprehensive product portfolio, management expects robust Memorychips across all business segments.Shares of KLA Corporation KLAC and Applied Materials AMAT have rallied 24.4% and 45.3% in the past three months, respectively, in the same time frame. ASML reported second-quarter revenues of $10.8 million, up 24% year over year. Revenues came above the high end of the guidance as a result of higher-than-expected Installed Base Management sales.Net system sales totaled €6.6 billion, including €3.8 billion from EUV systems and €2.8 billion from non-EUV products. ASML recognized sales of one High NA EUV system during the quarter.EUV accounted for 57% of second-quarter system revenues, while ArFi systems contributed 29%. Logic represented 51% of net system sales, and Memory accounted for the remaining 49%, reflecting balanced demand across advanced semiconductor applications.Gross margin was 54%, up 30 basis points, primarily driven by the contribution of very high-margin components within its Installed Base Management business. It also exceeded the guidance. The bottom line came in at $8.81, up about 98% year over year.At the end of the second quarter, ASML’s cash, cash equivalents and short-term investments were €7.58 billion. ASML repurchased around 0.8 million shares for approximately €1.1 billion and declared a first quarterly interim dividend of €1.88 per share, to be paid out on Aug. 5, 2026.ASML generated €1.70 billion in operating cash flow during the quarter. After €386 million in purchases of property, plant, equipment and intangible assets, free ca...

KLA's (KLAC) upcoming earnings are expected to show continued strength in artificial intelligence-re

KLA recently reported Q3 FY26 revenue of US$3.42 billion, including US$3.08 billion from its Semi Process Control segment, alongside its 17th consecutive dividend increase and a new US$7.00 billion share buyback authorization, even as sector-wide semiconductor stocks came under pressure following SK hynix-led profit taking in AI and memory names. These developments highlight how KLA’s role as an AI-enabling process control supplier and its willingness to return substantial capital to shareholders coexist with near-term investor caution across the wider chip sector. Against this backdrop of sector-wide profit taking, we’ll assess how KLA’s growing AI-related demand and capital returns affect its existing investment narrative. The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. To own KLA, you need to believe its process control tools remain essential to AI, HBM and advanced packaging spending, even as chip stocks experience bouts of profit taking. The recent pullback tied to SK hynix-led weakness does not appear to change KLA’s near term catalyst of AI-related Semi Process Control demand, but it does underline the risk that any pause in leading edge capex or sector sentiment can quickly translate into more volatile revenue visibility. Among KLA’s recent announcements, the expanded US$20.0 billion share repurchase authorization stands out here, because it interacts directly with the current sector-wide volatility. For investors focused on catalysts, that program, alongside 17 consecutive annual dividend increases, ties KLA’s AI-driven earnings power to ongoing capital returns, but it also heightens the importance of watching how export controls, China spending normalization and tariff-related costs might influence future cash generation. Yet even with strong AI demand today, investors should be aware that concentrated exposure to leading edge spend could quickly become a risk if... Read the full narrative on KLA (it's free!) KLA's narrative projects $21.2 billion revenue and $8.7 billion earnings by 2029. Uncover how KLA's forecasts yield a $214.21 fair value, a 7% downside to its current price. While consensus sees AI de...

ASML Holding ASML is slated to report second-quarter 2026 results before the market opens on July 15, 2026. ASML expects revenues between €8.4 billion and €9 billion. The Zacks Consensus Estimate is pegged at $10.28 billion, indicating a 17.8% increase from the year-ago quarter’s level. The Zacks Consensus Estimate for earnings is pegged at $7.98 per share, suggesting an increase of 75.4% from the year-ago quarter’s earnings of $4.55. The estimate has been revised downward by 3 cents over the past 30 days. Image Source: Zacks Investment Research The company’s earnings outpaced the Zacks Consensus Estimate twice in the trailing four quarters while missing on two occasions, the average negative surprise being 4.54%. ASML Holding N.V. price-eps-surprise | ASML Holding N.V. Quote Our proven model does not conclusively predict an earnings beat for ASML this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here. ASML Holding currently carries a Zacks Rank #4 (Sell) and has an Earnings ESP of -1.04%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. ASML Holding’s second-quarter performance is likely to have benefited from the rising demand for its lithography tools, which is gaining traction on the back of the need to produce more complex logic, DRAM, HBM and NAND chips. ASML’s EUV technology is gaining the highest traction among DRAM, followed by HBM and DDR. Shift toward High NA-EUV technology, strong usage of ASML’s DUV technology in China and EUV in the rest of the world are likely to have driven the company’s top line in the to-be-reported quarter. As AI and high-performance computing processes like training and inference require better HBM and DRAM chips, ASML’s advanced etching tools will remain in demand. The growing popularity of ASML Holding’s NXE:3800 low numerical aperture (NA) machine, which can process 220 wafers per hour, is likely to have driven substantial EUV sales in the to-be-reported quarter. The industry’s shift from 4nm to 2nm nodes has led to single-exposure EUV technology gaining popularity. EUV is likely to have gained traction in the to-be-reported quarter. ASML Holding’s upgrade and service bu...

The best quarterly stock market performance in six years powered the average U.S. diversified equity fund higher.

With a market cap of $282.8 billion, KLA Corporation (KLAC) is a global leader in advanced process control and process-enabling solutions for the electronics and semiconductor manufacturing industry. Working closely with customers worldwide, KLA's teams of scientists, engineers, and data experts develop innovative equipment and services that drive advancements in wafer, reticle, integrated circuit, packaging, and printed circuit board manufacturing. The Milpitas, California-based company is slated to announce its fiscal Q4 2026 results soon. Ahead of this event, analysts expect KLAC to report an adjusted EPS of $1, a 6.4% rise from $0.94 in the year-ago quarter. It has exceeded or met Wall Street's earnings expectations in the past four quarters. Nasdaq Futures Plunge as Samsung Sparks Chip Selloff AbbVie vs Eli Lilly: 1 Is Clearly the Better Dividend Stock to Buy and Hold for the Next 10 Years The Nasdaq-100 Could Be Forming a Textbook Diamond Top. Here's What to Watch on the QQQ Chart Now. Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For fiscal 2026, analysts project the semiconductor equipment manufacturer to post adjusted EPS of $3.71, up 11.4% from $3.33 in fiscal 2025. Moreover, adjusted EPS is anticipated to grow 34.2% year-over-year to $4.98 in fiscal 2027. Shares of KLA Corporation have surged 137.2% over the past 52 weeks, surpassing the broader S&P 500 Index's ($SPX) 20.5% return and the State Street Technology Select Sector SPDR ETF's (XLK) 40.6% increase over the same period. KLA reported strong Q3 2026 results on Apr. 29, with revenue increasing 11.8% year-over-year to $3.42 billion and adjusted EPS of $9.40, both surpassing the consensus estimates. The company provided a strong Q4 outlook, forecasting revenue of $3.58 billion and adjusted EPS of $9.87, both slightly above analysts' expectations. KLA also announced its 17th consecutive annual dividend increase to $2.30 per share and authorized an additional $7 billion share repurchase program. However, the stock fell 3.6% the next day. Analysts' consensus view on KLAC stock remains cautiously optimistic, with an overall "Moderate Buy" rating. Out of 28 analysts covering the stock, 15 recommend a "Strong Buy," three "Moderate Buys," and 10 "Holds." The ave...

(Bloomberg) -- Semiconductor stocks are starting the third quarter with their worst two-day selloff in nearly a month. Most Read from Bloomberg Exxon to Change Name for First Time in Decades After Redomicile Meta Is Planning a Cloud Business to Sell AI Computing Power Germany Rejects Trump’s Demands for NATO Loyalty to Washington Russia Indicates Ukraine Fired Long-Range Ballistic Missile Krafton Agrees to Pay ‘Subnautica 2’ Bonuses as Developer’s CEO Resigns The Philadelphia Stock Exchange Semiconductor Index, which is coming off its best quarter ever with an 88% advance in the second quarter, fell as much as 6% on Thursday. That has the index on pace for a decline of 12% over two sessions, the most since June 5. The drop on Thursday was led by the makers of equipment used in the production of chips. Teradyne Inc., Entegris Inc. and KLA Corp. all fell more than 10% while Lam Research Corp. and Applied Materials Inc. each dropped about 8%. Anthropic PBC has held talks with Samsung Electronics Co. as a potential manufacturing partner for a custom AI chip, the Information reported on Thursday, citing people familiar. The AI startup has held discussions with multiple chip design companies, according to the report. The selloff comes amid a volatile stretch for the index of 30 chip-related companies as investors assess the sustainability of spending on artificial intelligence equipment that sent earnings and profit growth soaring in the sector. Over the past two weeks, the chip index has closed with a gain or loss of more than 2% on all but one session. Still, the benchmark remains up 78% in 2026, putting it on track for its best year since 1999. Most Read from Bloomberg Businessweek Spain Built Too Much Solar. Investors Want Out ‘Southern Squeeze’ Grips US Cities Once Known for Affordability The Wall Street Women Who Traded Finance Careers for Influencer Success The Fun Shortage Is Real, and It’s Making America Miserable ByteDance Picks Brazil for Its Largest Data Center Outside China ©2026 Bloomberg L.P.

The S&P 500 Index ($SPX) (SPY) today is down -0.15%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.23%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.30%. June E-mini S&P futures (ESM26) are down -0.17%, and June E-mini Nasdaq futures (NQM26) are up +0.24%. Stock indexes are mixed today, with the Dow Jones Industrials posting a new all-time high. Strength in chipmakers is leading the overall market higher. Stocks also garnered support on better-than-expected US economic reports on US May retail sales, a sign of resilient consumer demand, and May pending home sales. Weakness in telecommunication and trucking stocks is limiting gains in the overall market. Rocket Lab vs. Redwire: 1 Stock Has the Stronger Growth Story for the Next Decade Dear SpaceX Stock Fans, Mark Your Calendars for June 16 Dear Western Digital Stock Fans, Mark Your Calendars for June 22 Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Stocks also have carryover support from Monday after the US and Iran agreed to end their war and reopen the Strait of Hormuz, knocking crude oil prices down to a 3.5-month low and stoking risk-on sentiment in asset markets. The market’s focus will be on the conclusion of today’s 2-day FOMC meeting, the first under the leadership of new Fed Chair Kevin Warsh. While the Fed is expected to keep interest rates unchanged, the spotlight will be on how Mr. Warsh navigates the post-meeting press conference and the outlook for inflation. US MBA mortgage applications fell -3.8% in the week ended June 12, with the purchase mortgage sub-index down -3.4% and the refinancing mortgage sub-index down -4.5%. The average 30-year fixed rate mortgage was unchanged from last week at 6.60%. US May retail sales rose +0.9% m/m, stronger than expectations of +0.6% m/m. Also, May retail sales ex-autos rose +0.8% m/m, stronger than expectations of +0.6% m/m. US May pending home sales rose +3.8% m/m, stronger than expectations of +0.9% m/m and the biggest increase in 20 months. WTI crude oil prices (CLN26) recovered from a 3.5-month low today and are moving higher as prices consolidate following this week’s plunge. The eventual resumption of vessel traffic through the Strait of Hormuz could lead to the release of more than 100 laden ships ca...

KLA Corporation (NASDAQ:KLAC) is one of the 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds. On June 9, UBS analyst Timothy Arcuri raised the firm’s price target on KLA Corporation (NASDAQ:KLAC) from $1770 to $2180 while keeping a Neutral rating. The upwardly revised price target suggests a further 1.9% upside from current levels. KLA Corporation (NASDAQ:KLAC) began June on a positive note. On June 1, J.P. Morgan said that it sees strong long-term growth potential for the company and believes it could earn $95 per share by 2030. According to the firm, KLAC is benefiting from the rising demand for process control tools. This segment of the semiconductor equipment market is expanding at a faster pace than the broader industry. J.P. Morgan analyst Harlan Sur stated: This rising demand was also confirmed by Oppenheimer in May. The firm highlighted that the company’s third-quarter earnings were slightly better than expected but not stronger. This was mainly due to taxes, higher DRAM-related costs, and recent estimate revisions after Investor Day. It also noted that supply and fab capacity constraints are temporarily limiting how much earnings estimates can be increased. This is happening even though demand is stronger and is projected to improve further by 2027. KLA Corporation (NASDAQ:KLAC) provides process-control and process-enabling equipment, software, and services used in semiconductor wafer, reticle, integrated circuit, packaging, and printed circuit board manufacturing. While we acknowledge the potential of KLAC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 12 Best Mid-Cap AI Stocks to Buy According to Analysts and Best 52-Week Low Stocks to Buy According to Hedge Funds. Disclosure: None. Follow Insider Monkey on Google News.

KLA Corporation recently reported past fiscal Q3 2026 results that exceeded expectations on revenue, earnings, and gross margins, while also announcing a 10-for-1 forward stock split and a higher dividend tied to rising AI-related process control demand. Management’s unusually detailed commentary on anticipated 2027 growth and advanced packaging opportunities highlights how increasing semiconductor complexity is deepening KLA’s role in AI manufacturing workflows. We’ll now examine how KLA’s strong earnings beat and confident guidance update reshape the company’s investment narrative and risk profile. Find 46 companies with promising cash flow potential yet trading below their fair value. To own KLA, you need to believe that rising semiconductor and AI complexity will keep increasing demand for its process control tools, especially at the leading edge and in advanced packaging. The latest Q3 FY26 beat and stronger guidance support this thesis in the near term and bolster the key catalyst of AI-related fab spending, but they do not remove the major risk of export controls, tariffs, and China weakness pressuring revenue and margins. The newly announced 10-for-1 stock split, alongside a higher quarterly dividend of US$2.30 per share, is the most relevant update here. While the split itself does not change KLA’s fundamentals, the combination of strong earnings, upbeat AI-driven guidance, and a rising dividend stream reinforces the near term story of monetizing complexity, even as investors weigh valuation pressures and ongoing geopolitical and China-specific risks. Yet even with strong results and a higher dividend, investors should still pay close attention to growing tariff and export control pressures that... Read the full narrative on KLA (it's free!) KLA's narrative projects $20.5 billion revenue and $8.6 billion earnings by 2029. Uncover how KLA's forecasts yield a $1855 fair value, a 13% downside to its current price. Before this report, the most optimistic analysts were already baking in about US$26.4 billion of revenue and US$8.5 billion of earnings by 2029, which is far more bullish than consensus and assumes KLA overcomes issues like rising geopolitical trade restrictions that could cut hundreds of millions from annual sales; this latest AI driven beat could either reinforce that optimistic path or force you to reassess how much risk you are willing to...

A month has gone by since the last earnings report for Flex (FLEX). Shares have added about 20.2% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Flex due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. Flex Q4 Earnings Beat Estimates Flex reported fourth-quarter fiscal 2026 adjusted earnings per share (EPS) of 93 cents, which surpassed the Zacks Consensus Estimate by 8.1%. The bottom line compared favorably with 73 cents posted in the prior-year quarter. Revenues increased 17% year over year to $7.5 billion. It beat the consensus mark by 8.1%. The growth was primarily driven by strong momentum across all three segments, with Cloud and Power Infrastructure emerging as the standout performer. Management highlighted that the company’s strong finish to fiscal 2026 reflected disciplined execution and a well-defined strategy, supported by targeted acquisitions and capital investments aligned with Flex’s long-term growth opportunities. Flex has announced its intention to spin off its Cloud and Power Infrastructure segment into a newly formed, independent, publicly traded company, marking a significant step in the company's broader strategic realignment. As part of this reorganization, Flex is separating its Data Center business and realigning into three distinct segments. The first, Regulated Manufacturing Solutions, will serve Industrial, Automotive, and Healthcare markets, covering automation and energy infrastructure, compute and power electronics, and regulated medical devices, respectively. The second, Integrated Technology Solutions, will focus on Communications through high-speed networking and enterprise systems and on Lifestyle through premium products across commercial, home and personal categories. The third and newly defined segment, Cloud and Power Infrastructure, will deliver compute, liquid cooling and data center architecture solutions alongside critical rack-level and embedded power capabilities. Segment Details Regulated Manufacturing Solutions Segment: This segment encompasses Health Solutions, Automotive and Industrial businesses. Revenues grew 13% to $2.7 billion, accounting...

It has been about a month since the last earnings report for KLA (KLAC). Shares have added about 10.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is KLA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. KLA Corporation reported fiscal third-quarter 2026 non-GAAP earnings of $9.40 per share, up 11.8% year over year, beating the Zacks Consensus Estimate by 2.60%. Revenue rose 11.5% year over year to $3.42 billion and topped the consensus mark by about 0.91%. A key industry datapoint supporting the quarter’s tone was KLA’s process control market leadership. Semiconductor Process Control remained the clear engine of results. Segment revenue totaled $3.08 billion (90.3% of total revenues), up 12.6% year over year and 3% sequentially, underscoring solid demand across inspection, metrology and related services.Within Semiconductor Process Control, the company described end-market mix as roughly 62% foundry/logic and 38% memory on a systems basis.Specialty Semiconductor Process revenues (4.8% of total revenues) were $164 million, up 5% year over year and 17% sequentially.PCB and Component Inspection revenues (4.9% of total revenues) decreased 1% year over year to $167 million but increased 10% on a sequential basis. Product revenues (which accounted for 77.3% of total revenues) rose 10.3% year over year to $2.64 billion. Service revenues (22.7% of total revenues) increased 15.8% year over year to $775 million.In terms of major products, Wafer Inspection and Patterning Systems (including metrology and reticle inspection) accounted for 51% and 18%, respectively, of KLA’s total revenues in the fiscal third quarter. Wafer Inspection revenues increased 16% year over year and 11% sequentially to $1.74 billion. Patterning revenues moved down 3% year over year and 12% sequentially to $615 million. In terms of the regional breakdown of revenues, Taiwan and China led revenue contributions with 26% and 24%, respectively. Korea accounted for 20%, Japan 5% and North America 12%. Europe contributed 7%, whereas the remaining 6% came from the Rest of Asia. In the third quarter of fiscal 2026, the non-GAAP gross margin was 62.2%, 45 basis p...