KLA Corp projects strong quarter as AI infrastructure spending fuels semiconductor demand
2 Sources
[1]
KLA Corp forecasts upbeat quarter on sustained AI investment
July 28 (Reuters) - KLA Corp (KLAC.O), opens new tab forecast first-quarter revenue and profit above Wall Street estimates on Tuesday, betting that continued investment in AI infrastructure would sustain strong demand for its chipmaking tools. Shares of the California-based company, however, fell 8% in extended trading. They have done risen over 57% so far this year. KLA provides process control and yield management systems, which are critical for identifying and correcting defects during the semiconductor manufacturing ā process. Its tools become more vital as chipmakers move to smaller and more complex production nodes. Here are some details: Reporting by Juby Babu in Mexico City; Editing by Shailesh Kuber Our Standards: The Thomson Reuters Trust Principles., opens new tab
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KLA 4Q Profit, Revenue Rise on AI Infrastructure Buildout, Expects Momentum to Pick Up
KLA posted higher profit and revenue in its latest quarter and expects trends to continue to accelerate, boosted by the ongoing buildout of AI infrastructure. The provider of semiconductor equipment on Tuesday reported a profit of $1.36 billion, or $1.04 a share, for the fourth-quarter ended June 30, compared with $1.2 billion, or 91 cents a share, in the same quarter a year earlier. Adjusted earnings were $1.05 a share. Analysts polled by FactSet expected $1 a share. Revenue rose to $3.66 billion from $3.17 billion. Analysts were looking for $3.61 billion. Chief Executive Rick Wallace said that the company expects momentum to accelerate in the half of this year and through 2027. He said that the increasing number and sophistication of leading-edge designs across foundry and logic and the rising complexity and performance specifications in memory are driving greater demand for process control. He added that the growth of AI infrastructure is also creating opportunity in advanced packaging where KLA's process control product portfolio is well positioned. For the current quarter, KLA expects revenue between $3.8 billion and $4.2 billion and per-share earnings between $1.04 and $1.24. On an adjusted basis, it expects per-share earnings between $1.06 and $1.26. Analysts were looking for revenue of $3.93 billion and adjusted earnings of $1.14 a share. Shares fell about 8.2% to $175.10 in afterhours trading. The stock had more than doubled over the last year.
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KLA Corp reported fourth-quarter revenue of $3.66 billion and forecast first-quarter revenue up to $4.2 billion, surpassing Wall Street estimates. The semiconductor equipment manufacturer expects accelerating momentum through 2027, driven by AI infrastructure buildout and rising demand for process control systems. Despite the upbeat quarter forecast, shares fell 8% in after-hours trading.
KLA Corp Beats Expectations with Strong Q4 Results
KLA Corp delivered robust fourth-quarter results, posting revenue of $3.66 billion compared to $3.17 billion in the same period last year, exceeding Wall Street estimates of $3.61 billion
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. The semiconductor equipment manufacturer reported a 4Q profit of $1.36 billion, or $1.04 a share, up from $1.2 billion a year earlier. Adjusted earnings reached $1.05 a share, surpassing analyst expectations of $1 a share. The California-based company provides process control and yield management systems that are critical for identifying and correcting defects during the semiconductor manufacturing process1
.AI Infrastructure Buildout Drives Upbeat Quarter Forecast
Looking ahead, KLA Corp forecast first-quarter revenue between $3.8 billion and $4.2 billion, with adjusted per-share earnings between $1.06 and $1.26, both figures exceeding analyst projections of $3.93 billion in revenue and $1.14 per share
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. The company's optimistic outlook stems from sustained investment in AI infrastructure, which continues to fuel AI-driven chip demand across the industry. CEO Rick Wallace emphasized that momentum is expected to accelerate in the second half of this year and through 2027, citing the increasing number and sophistication of leading-edge designs across foundry and logic operations2
.Process Control Demand Intensifies as Chipmakers Push Boundaries
The semiconductor equipment manufacturer's tools become increasingly vital as chipmakers move to smaller and more complex production nodes
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. Rick Wallace noted that rising complexity and performance specifications in memory are driving greater demand for process control solutions. The growth of AI infrastructure is also creating opportunities in advanced packaging, where KLA's product portfolio is well positioned to capitalize on emerging needs2
. This positioning matters significantly for companies building AI data centers and next-generation computing systems that require cutting-edge semiconductor manufacturing capabilities.Related Stories
Market Reaction Despite Strong Performance
Despite the strong results and positive guidance, KLA Corp shares fell approximately 8% to $175.10 in after-hours trading, though the stock had more than doubled over the previous year
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. Shares also dropped 8% in extended trading following the announcement1
. The stock had risen over 57% year-to-date before the earnings release. The market's reaction suggests investors may have already priced in strong performance or are concerned about maintaining growth rates despite the company's optimistic multi-year outlook and its critical role in enabling the ongoing AI infrastructure buildout that shows no signs of slowing.References
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