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KLAC vs LRCX
Which Stock Would AI Choose? KLA Corporation (KLAC) vs. Lam Research (LRCX) Stock Comparison
Key Takeaways
- KLAC (KLA Corporation) leads in semiconductor process control, inspection, and metrology, while LRCX (Lam Research) is a leader in deposition and etch equipment used in wafer fabrication.
- Both companies are benefiting from accelerating AI infrastructure investment, but their exposure differs: KLAC leans toward foundry/logic and advanced packaging, while LRCX has heavier memory exposure.
- KLAC recently reported record quarterly revenue and raised its industry outlook, whereas LRCX posted record results but faced near-term supply chain constraints that pressured its shares.
- KLAC carries a structurally higher gross margin (roughly 62%) compared with LRCX (about 52%), reflecting the higher value-add of its process-control franchise.
- Relative performance has diverged in recent market activity: KLAC shares have rallied more strongly on backlog visibility, while LRCX pulled back despite record earnings.
- For more detail, explore the KLAC Major News and KLAC Today's Price Move pages, as well as LRCX Major News and LRCX Today's Price Move pages for updated coverage.
- To see how automated systems are positioning across these and thousands of other tickers, explore the Trending AI Robots page.
Introduction
Investors tracking the semiconductor equipment sector frequently weigh KLAC against LRCX, two of the industry's most prominent suppliers. Both firms sit at the center of the artificial intelligence (AI) infrastructure buildout, selling the advanced tools chipmakers need to manufacture increasingly complex processors and memory. Yet they occupy different niches within that value chain, which produces meaningful differences in growth drivers, margins, and risk profiles. This stock comparison is relevant to traders seeking relative-performance signals and to long-term investors evaluating how market positioning and exposure to memory versus logic could shape returns across the semiconductor cycle.
KLAC Overview and Recent Performance
KLAC, or KLA Corporation, develops process control, wafer inspection, and metrology systems that help semiconductor manufacturers detect defects and improve yield. In its most recent reported quarter, KLAC delivered record revenue of roughly $3.66 billion, up about 15% year over year, supported by demand tied to AI infrastructure, leading-edge foundry/logic, and rising process control intensity. The company reported a non-GAAP gross margin near 62% and an operating margin above 43%, underscoring the profitability of its franchise. Management raised its calendar 2026 wafer fabrication equipment (WFE) market estimate to the low-$150 billion range and cited a backlog of roughly $12.6 billion, up about 60% year over year. That backlog, combined with expectations for advanced packaging process control revenue near $1.1 billion in 2026, has reinforced sentiment around the stock's relative strength in recent market activity.
LRCX Overview and Recent Performance
LRCX, or Lam Research, is a leading supplier of deposition and etch equipment, two essential steps in chip fabrication. In its latest reported quarter, LRCX generated record revenue of approximately $8.22 billion, up more than 50% year over year, driven by strong foundry and memory demand, including NAND conversions and high-bandwidth memory. The company posted a record non-GAAP gross margin near 52% and an operating margin above 40%, while generating record free cash flow. Despite these results, shares declined in recent trading activity after management noted that near-term supply chain constraints limited its revenue guidance and that China's revenue share was expected to fall. Memory made up roughly 46% of systems revenue, giving LRCX greater sensitivity to memory pricing and spending cycles than its process-control peer.
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Head-to-Head Comparison
The clearest contrast between KLAC and LRCX lies in their technology focus. KLAC's process control and metrology tools address yield and quality, a category that grows as chip complexity rises and that commands premium margins. LRCX's deposition and etch systems are higher-volume, capital-intensive tools more directly exposed to wafer starts and memory expansion. This shows up in gross margins—KLAC around 62% versus LRCX near 52%—and in revenue scale, where LRCX's larger top line reflects its broader systems footprint.
Growth drivers also differ. KLAC is emphasizing advanced packaging and a record backlog that extends visibility into 2027 and beyond, while LRCX is benefiting from a NAND upgrade cycle and rising memory intensity but is managing near-term supply constraints. On risk factors, LRCX carries greater China revenue concentration (about 35% in its latest quarter) and more memory cyclicality, while KLAC's exposure leans toward foundry and logic. In terms of market sentiment, KLAC's stronger backlog narrative has supported relative momentum in recent weeks, whereas LRCX's record results were met with selling pressure tied to supply chain commentary and guidance.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely favor KLAC at this juncture, given the combination of trend consistency, a growing backlog, higher structural margins, and an outlook that management has raised rather than qualified. LRCX presents compelling scale and free cash flow, but the recent supply chain constraints and anticipated China revenue decline introduce near-term uncertainty that weighs on relative positioning. This assessment reflects probabilistic analysis of current data rather than a definitive forecast, and conditions may shift as new earnings and order data emerge.
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.
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.
KLAC's RSI Oscillator ascends from oversold territory
The RSI Indicator for KLAC moved out of oversold territory on October 27, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 12 similar instances when the indicator left oversold territory. In 11 of the 12 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 49 of 60 cases where KLAC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 82%.
Following a +8.96% 3-day Advance, the price is estimated to grow further. Considering data from situations where KLAC advanced for three days, in 268 of 345 cases, the price rose further within the following month. The odds of a continued upward trend are 78%.
KLAC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 13, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on KLAC as a result. In 62 of 100 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 62%.
The Moving Average Convergence Divergence Histogram (MACD) for KLAC turned negative on October 13, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 30 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 61%.
KLAC moved below its 50-day moving average on October 13, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for KLAC crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 62%.
The 50-day moving average for KLAC moved below the 200-day moving average on October 27, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KLAC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 59%.
The Aroon Indicator for KLAC entered a downward trend on November 03, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 15 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 33 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 50 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock slightly better than average.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating steady price growth. KLAC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 89 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: KLAC's P/B Ratio (30.785) is very high in comparison to the industry average of (6.389). P/E Ratio (40.704) is within average values for comparable stocks, (83.490). KLAC's Projected Growth (PEG Ratio) (1.809) is slightly higher than the industry average of (0.801). Dividend Yield (0.006) settles around the average of (0.009) among similar stocks. P/S Ratio (16.260) is also within normal values, averaging (27.897).
LRCX's RSI Indicator recovers from oversold territory
The RSI Indicator for LRCX moved out of oversold territory on November 03, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 19 similar instances when the indicator left oversold territory. In 17 of the 19 cases the stock moved higher. This puts the odds of a move higher at 89%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +5.62% 3-day Advance, the price is estimated to grow further. Considering data from situations where LRCX advanced for three days, in 272 of 324 cases, the price rose further within the following month. The odds of a continued upward trend are 84%.
LRCX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 12, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on LRCX as a result. In 61 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 74%.
The Moving Average Convergence Divergence Histogram (MACD) for LRCX turned negative on October 12, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 57 similar instances when the indicator turned negative. In 37 of the 57 cases the stock turned lower in the days that followed. This puts the odds of success at 65%.
LRCX moved below its 50-day moving average on October 12, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for LRCX crossed bearishly below the 50-day moving average on October 16, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 77%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LRCX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 65%.
The Aroon Indicator for LRCX entered a downward trend on November 03, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 18 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 31 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 46 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 73, placing this stock slightly better than average.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating steady price growth. LRCX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 86 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: LRCX's P/B Ratio (22.220) is very high in comparison to the industry average of (6.389). P/E Ratio (38.244) is within average values for comparable stocks, (83.490). LRCX's Projected Growth (PEG Ratio) (1.463) is slightly higher than the industry average of (0.801). Dividend Yield (0.006) settles around the average of (0.009) among similar stocks. P/S Ratio (14.620) is also within normal values, averaging (27.897).
KLAC | LRCX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 6 | 5 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 89 Overvalued | 86 Overvalued | |
PROFIT vs RISK RATING 1..100 | 50 | 46 | |
SMR RATING 1..100 | 15 | 18 | |
PRICE GROWTH RATING 1..100 | 63 | 64 | |
P/E GROWTH RATING 1..100 | 33 | 31 | |
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 (86) in the Electronic Production Equipment industry is in the same range as KLAC (89). This means that LRCX’s stock grew similarly to KLAC’s over the last 12 months.
LRCX's Profit vs Risk Rating (46) in the Electronic Production Equipment industry is in the same range as KLAC (50). This means that LRCX’s stock grew similarly to KLAC’s over the last 12 months.
KLAC's SMR Rating (15) in the Electronic Production Equipment industry is in the same range as LRCX (18). This means that KLAC’s stock grew similarly to LRCX’s over the last 12 months.
KLAC's Price Growth Rating (63) in the Electronic Production Equipment industry is in the same range as LRCX (64). This means that KLAC’s stock grew similarly to LRCX’s over the last 12 months.
LRCX's P/E Growth Rating (31) in the Electronic Production Equipment industry is in the same range as KLAC (33). This means that LRCX’s stock grew similarly to KLAC’s over the last 12 months.
| KLAC | LRCX | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 90% | 2 days ago 89% |
| Stochastic ODDS (%) | 2 days ago 82% | 2 days ago 79% |
| Momentum ODDS (%) | 2 days ago 62% | 2 days ago 74% |
| MACD ODDS (%) | 2 days ago 61% | 2 days ago 65% |
| TrendWeek ODDS (%) | 2 days ago 77% | 2 days ago 64% |
| TrendMonth ODDS (%) | 2 days ago 70% | 2 days ago 71% |
| Advances ODDS (%) | 7 days ago 78% | 7 days ago 84% |
| Declines ODDS (%) | 3 days ago 59% | 3 days ago 65% |
| BollingerBands ODDS (%) | 2 days ago 82% | 2 days ago 82% |
| Aroon ODDS (%) | 2 days ago 59% | 2 days ago 70% |
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 overvalued. 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 2 FA rating(s) are green while LRCX’s FA Score has 2 green FA rating(s).
- KLAC’s FA Score: 2 green, 3 red.
- LRCX’s FA Score: 2 green, 3 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, 7 bearish.
- LRCX’s TA Score: 4 bullish, 6 bearish.
Price Growth
KLAC (@Electronic Production Equipment) experienced а +1.65% price change this week, while LRCX (@Electronic Production Equipment) price change was -4.21% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -13.40%. For the same industry, the average monthly price growth was -30.82%, and the average quarterly price growth was -37.30%.
Reported Earning Dates
KLAC is expected to report earnings on Feb 04, 2027.
LRCX is expected to report earnings on Jan 27, 2027.
Industries' Descriptions
@Electronic Production Equipment (-13.40% 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.
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KLAC and
Correlation & Price change
A.I.dvisor indicates that over the last year, KLAC has been closely correlated with AMAT. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if KLAC jumps, then AMAT could also see price increases.
| Ticker / NAME | Correlation To KLAC | 1D Price Change % | ||
|---|---|---|---|---|
| KLAC | 100% | +2.02% | ||
| AMAT - KLAC | 88% Closely correlated | +1.97% | ||
| LRCX - KLAC | 88% Closely correlated | +1.39% | ||
| NVMI - KLAC | 84% Closely correlated | -0.42% | ||
| ONTO - KLAC | 82% Closely correlated | +5.74% | ||
| ASML - KLAC | 81% Closely correlated | +1.70% | ||
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LRCX and
Correlation & Price change
A.I.dvisor indicates that over the last year, LRCX has been closely correlated with AMAT. These tickers have moved in lockstep 91% of the time. This A.I.-generated data suggests there is a high statistical probability that if LRCX jumps, then AMAT could also see price increases.
| Ticker / NAME | Correlation To LRCX | 1D Price Change % | ||
|---|---|---|---|---|
| LRCX | 100% | +1.39% | ||
| AMAT - LRCX | 91% Closely correlated | +1.97% | ||
| KLAC - LRCX | 88% Closely correlated | +2.02% | ||
| ASML - LRCX | 85% Closely correlated | +1.70% | ||
| NVMI - LRCX | 84% Closely correlated | -0.42% | ||
| RMBS - LRCX | 80% Closely correlated | +4.96% | ||
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