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KLAC vs LRCX
Which Stock Would AI Choose? KLA Corporation (KLAC) vs. Lam Research Corporation (LRCX) Stock Comparison
Key Takeaways
- Both KLAC and LRCX are leading semiconductor equipment providers benefiting from AI-driven demand, but LRCX delivered superior one-year returns of approximately 254% compared to KLAC's 163%.
- LRCX boasts a larger market capitalization of $314 billion versus KLAC's $238 billion, reflecting broader scale in wafer fabrication equipment.
- Recent market activity shows both stocks facing pressure from semiconductor sector sell-offs and geopolitical tensions, including U.S. restrictions on equipment shipments to China.
- KLAC specializes in process control and inspection tools, while LRCX excels in deposition and etch technologies, offering complementary exposures within the sector.
- Year-to-date (YTD) performance remains robust for both, with KLAC at 49% and LRCX at 47%, amid anticipation for quarterly earnings.
- Analyst price targets indicate potential upside, with LRCX at $306 and KLAC at $1,709, supporting continued interest in their relative performance.
Introduction
In the semiconductor equipment sector, KLAC and LRCX stand out as pivotal players powering advanced chip manufacturing amid surging AI and data center demand. This stock comparison evaluates their business models, recent market positioning, and performance metrics to aid traders and investors assessing relative strength. Day traders may focus on short-term momentum shifts, while long-term investors weigh growth catalysts like AI chip production and sector risks such as supply chain disruptions. With both stocks exhibiting volatility in recent weeks due to broader tech sector dynamics, understanding their contrasts helps inform portfolio allocation decisions in a competitive landscape.
KLAC Overview and Recent Performance
KLAC, or KLA Corporation, designs and markets process control and yield management solutions for semiconductor manufacturing, including inspection tools, metrology systems, and software for wafer and reticle analysis. Operating primarily in semiconductor process control, the company supports advanced nodes critical for AI and high-performance computing chips.
In recent market activity, KLAC shares traded around $1,809, reflecting year-to-date gains of 49% and a one-year surge of 163%, driven by strong earnings growth and announcements like a $7 billion share repurchase program. Sentiment has been influenced by anticipation for quarterly earnings, alongside sector-wide pressures from chip sell-offs and geopolitical export restrictions. Despite recent dips, such as a 4% decline ahead of Q1 results, analysts remain supportive with raised price targets, citing resilient demand for process control amid AI expansion.
LRCX Overview and Recent Performance
LRCX, or Lam Research Corporation, specializes in wafer fabrication equipment for deposition, etch, and clean processes used in integrated circuit production. Its portfolio includes systems for thin film deposition and plasma etch, essential for logic, memory, and advanced packaging in AI-driven semiconductors.
Recent weeks have seen LRCX shares near $251, with YTD returns of 47% and an impressive one-year gain of 254%, bolstered by record quarterly revenues of $5.84 billion and strong gross margins around 50%. Performance reflects AI demand catalysts, though tempered by recent sector declines linked to U.S. chip equipment curbs on China and broader market rotations. Analyst optimism persists, with targets around $306, highlighting momentum in memory and systems revenues despite near-term headwinds.
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Head-to-Head Comparison
KLAC and LRCX share exposure to the semiconductor equipment industry but differ in focus: KLAC emphasizes inspection and metrology for yield optimization, while LRCX leads in etch and deposition for core fabrication steps. Growth drivers align around AI chip complexity, though LRCX benefits more from memory and NAND demand.
Recent momentum favors LRCX with its outsized one-year returns and larger scale, but KLAC trades at a higher price-to-earnings (P/E) ratio of 53 versus 47, suggesting premium valuation for its stability. Risk factors like geopolitical tensions and cyclicality impact both equally, with higher beta for LRCX (1.79 vs. 1.43) indicating greater volatility. Market sentiment tilts toward LRCX for its record revenues, though KLAC's buybacks provide shareholder returns trade-offs.
Tickeron AI Verdict
Tickeron’s AI currently leans toward LRCX based on stronger trend consistency, superior relative one-year performance, larger market positioning, and recent record revenues amid AI catalysts. While KLAC offers solid stability, LRCX's momentum and scale present a higher probability of near-term outperformance in the current semiconductor environment.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is KLAC is a Hold and LRCX is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
KLAC’s FA Score shows that 4 FA rating(s) are green whileLRCX’s FA Score has 4 green FA rating(s).
- KLAC’s FA Score: 4 green, 1 red.
- LRCX’s FA Score: 4 green, 1 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
KLAC’s TA Score shows that 4 TA indicator(s) are bullish while LRCX’s TA Score has 4 bullish TA indicator(s).
- KLAC’s TA Score: 4 bullish, 4 bearish.
- LRCX’s TA Score: 4 bullish, 4 bearish.
Price Growth
KLAC (@Electronic Production Equipment) experienced а +11.78% price change this week, while LRCX (@Electronic Production Equipment) price change was +16.36% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +9.74%. For the same industry, the average monthly price growth was +27.52%, and the average quarterly price growth was +154.84%.
Reported Earning Dates
KLAC is expected to report earnings on Jul 23, 2026.
LRCX is expected to report earnings on Aug 05, 2026.
Industries' Descriptions
@Electronic Production Equipment (+9.74% weekly)The electronic production equipment industry makes equipment used to produce semiconductors. Such equipment includes wafer fabrication, plasma etching and photo-resist processing equipment. The industry also makes chemical vapor deposition processing systems and photomasks, which are high-purity quartz plates that contain patterns to define integrated circuits layouts. Applied Materials, Inc., Lam Research Corporation, and KLA-Tencor Corporation are examples of electronic production equipment manufacturing companies.
| KLAC | LRCX | KLAC / LRCX | |
| Capitalization | 339B | 487B | 70% |
| EBITDA | 6.06B | 8.07B | 75% |
| Gain YTD | 101.887 | 119.005 | 86% |
| P/E Ratio | 73.51 | 73.54 | 100% |
| Revenue | 13.1B | 21.7B | 60% |
| Total Cash | 613M | 1.68B | 37% |
| Total Debt | 6.15B | 3.73B | 165% |
KLAC | LRCX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 40 | 40 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 91 Overvalued | 88 Overvalued | |
PROFIT vs RISK RATING 1..100 | 2 | 2 | |
SMR RATING 1..100 | 13 | 17 | |
PRICE GROWTH RATING 1..100 | 3 | 2 | |
P/E GROWTH RATING 1..100 | 8 | 5 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
LRCX's Valuation (88) in the Electronic Production Equipment industry is in the same range as KLAC (91). This means that LRCX’s stock grew similarly to KLAC’s over the last 12 months.
LRCX's Profit vs Risk Rating (2) in the Electronic Production Equipment industry is in the same range as KLAC (2). This means that LRCX’s stock grew similarly to KLAC’s over the last 12 months.
KLAC's SMR Rating (13) in the Electronic Production Equipment industry is in the same range as LRCX (17). This means that KLAC’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's Price Growth Rating (2) in the Electronic Production Equipment industry is in the same range as KLAC (3). This means that LRCX’s stock grew similarly to KLAC’s over the last 12 months.
LRCX's P/E Growth Rating (5) in the Electronic Production Equipment industry is in the same range as KLAC (8). This means that LRCX’s stock grew similarly to KLAC’s over the last 12 months.
| KLAC | LRCX | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 56% | 2 days ago 57% |
| Stochastic ODDS (%) | 2 days ago 64% | 2 days ago 69% |
| Momentum ODDS (%) | 8 days ago 81% | 2 days ago 85% |
| MACD ODDS (%) | 2 days ago 66% | 2 days ago 82% |
| TrendWeek ODDS (%) | 2 days ago 77% | 2 days ago 81% |
| TrendMonth ODDS (%) | 2 days ago 80% | 2 days ago 81% |
| Advances ODDS (%) | 2 days ago 77% | 2 days ago 82% |
| Declines ODDS (%) | 22 days ago 61% | 15 days ago 64% |
| BollingerBands ODDS (%) | 2 days ago 64% | 2 days ago 73% |
| Aroon ODDS (%) | 2 days ago 77% | 2 days ago 81% |
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