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KLAC vs LRCX
Which Stock Would AI Choose? KLA Corporation (KLAC) vs. Lam Research (LRCX) Stock Comparison
Key Takeaways
- KLA Corporation (KLAC) leads in semiconductor process control, inspection, and metrology, while Lam Research (LRCX) specializes in etch and deposition equipment used to build advanced chips.
- Both stocks rode the artificial intelligence (AI) infrastructure boom to record highs in mid-2026, then pulled back sharply in recent weeks on sector-wide concerns around China competition, Taiwan labor risks, and hotter inflation data.
- KLAC reported record quarterly revenue of $3.66 billion and carries a roughly $12.6 billion backlog, while LRCX posted $6.72 billion in quarterly revenue with accelerating NAND (flash memory) and advanced packaging demand.
- LRCX has delivered stronger recent relative performance on a year-to-date basis, while KLAC offers comparatively deeper multi-year revenue visibility through its backlog and expanded share-buyback program.
- China exposure remains a shared risk factor, representing a meaningful portion of revenue for both companies amid export-control uncertainty.
Introduction
This stock comparison examines two of the largest pure-play semiconductor equipment suppliers, KLAC (KLA Corporation) and LRCX (Lam Research). Although both companies sell critical machinery to the same chipmakers, they compete in different stages of the fabrication process, creating distinct growth drivers and risk profiles. Traders and investors evaluating AI-related infrastructure exposure, semiconductor cyclicality, or relative performance within the capital-equipment sector may find this comparison useful. Recent market activity has reset valuations for both names after a powerful multi-year rally, making their current market positioning and momentum especially relevant for anyone weighing the two side by side.
KLAC Overview and Recent Performance
KLAC, or KLA Corporation, develops process-control and process-enabling solutions, including wafer inspection, metrology, and patterning tools that help chipmakers monitor and improve manufacturing yields. In its most recent fiscal quarter, the company reported record revenue of $3.66 billion, up 15% year over year, supported by rising process-control intensity across leading-edge logic, memory, and advanced packaging. KLA also executed a 10-for-1 stock split and expanded its capital-return program, authorizing an additional $7 billion in share repurchases alongside a higher dividend.
Sentiment has been shaped by two opposing forces in recent weeks. On one hand, KLA raised its calendar 2026 wafer fabrication equipment (WFE) market estimate and pointed to a backlog of roughly $12.6 billion, up about 60% year over year, with shipment visibility extending into 2027 and early 2028. On the other hand, the shares have pulled back meaningfully from their all-time high, with sector pressure tied to Chinese memory advances and Taiwan labor concerns weighing on the group. China accounted for about 26% of recent revenue, underscoring the company's exposure to export-policy shifts.
LRCX Overview and Recent Performance
LRCX, or Lam Research Corporation, designs and manufactures etch and deposition equipment—tools that carve intricate patterns into wafers and deposit ultra-thin material layers—alongside a large services and spares business. In its most recent quarter, Lam reported revenue of $6.72 billion, up 30% year over year, with non-GAAP earnings per share (EPS) rising 37%. Management pointed to record DRAM (dynamic random-access memory) demand, a more-than-doubling of NAND revenue, and expectations for advanced packaging growth exceeding 50% in calendar 2026.
Lam returned more than $5 billion to shareholders in its latest fiscal year through buybacks and dividends, and it raised its quarterly dividend by 27% in August 2026. Like KLAC, however, LRCX has given back a significant portion of its gains in recent weeks, falling roughly a third from its 52-week high as inflation data and Chinese competition concerns pressured the semiconductor sector broadly. China represented about 34% of recent revenue, a higher concentration than KLAC and a key variable for sentiment going forward.
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Head-to-Head Comparison
The clearest contrast between these two companies lies in their technology focus. KLAC dominates process control, inspection, and metrology—areas where increasing chip complexity raises the value of its tools—while LRCX leads in etch and deposition, giving it greater direct leverage to memory and advanced-node capacity expansions. Lam's larger services mix and broader memory exposure have translated into faster recent revenue growth, whereas KLA's backlog provides deeper, longer-dated visibility.
On relative performance, LRCX has outpaced KLAC on a year-to-date basis, though both have corrected sharply from their June 2026 peaks. KLAC trades at a higher earnings multiple relative to some peers, while LRCX carries a forward price-to-earnings (P/E) ratio near 32 that is elevated versus the broader industry. Risk profiles also differ: Lam's higher China revenue concentration (about 34% versus roughly 26% for KLAC) makes it more sensitive to export-control developments, while both face common sector risks tied to the cyclicality of fab spending.
Tickeron AI Verdict
Based on observable factors, Tickeron's AI would likely show a modest preference for LRCX in the current environment, reflecting its stronger recent revenue momentum, accelerating memory and advanced packaging demand, and comparatively attractive forward valuation on an earnings basis. That said, KLAC presents a more stable, backlog-anchored profile with superior multi-year visibility, which may appeal to a more defensive, trend-consistency framework. In probabilistic terms, the AI's tilt toward either name would depend heavily on whether the model prioritizes momentum and growth catalysts—favoring LRCX—or stability and visibility—favoring KLAC—and both remain highly exposed to shared semiconductor-sector sentiment.
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.
Momentum Indicator for KLAC turns negative, indicating new downward trend
KLAC saw its Momentum Indicator move below the 0 level on October 13, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 100 similar instances where the indicator turned negative. In 68 of the 100 cases, the stock moved further down in the following days. The odds of a decline are at 68%.
Technical Analysis (Indicators)
Bearish Trend Analysis
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 48 similar instances when the indicator turned negative. In 29 of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at 60%.
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.
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 September 24, 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.
Bullish Trend Analysis
The RSI Indicator demonstrates 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.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for KLAC crossed bullishly above the 50-day moving average on October 01, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 80%.
Following a +6.14% 3-day Advance, the price is estimated to grow further. Considering data from situations where KLAC advanced for three days, in 265 of 342 cases, the price rose further within the following month. The odds of a continued upward trend are 77%.
KLAC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 13 (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 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 Price Growth Rating for this company is 44 (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 Profit vs. Risk Rating rating for this company is 44 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock slightly better than average.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued 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 Valuation Rating of 88 (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 (38.911) is very high in comparison to the industry average of (8.078). P/E Ratio (51.686) is within average values for comparable stocks, (161.623). KLAC's Projected Growth (PEG Ratio) (1.809) is slightly higher than the industry average of (0.801). Dividend Yield (0.004) settles around the average of (0.002) among similar stocks. P/S Ratio (16.260) is also within normal values, averaging (27.897).
LRCX in downward trend: 10-day moving average moved below 50-day moving average on October 16, 2026
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 9 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 69%.
Technical Analysis (Indicators)
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 51 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 62%.
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 58 similar instances when the indicator turned negative. In 33 of the 58 cases the stock turned lower in the days that followed. This puts the odds of success at 57%.
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.
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 64%.
Bullish Trend Analysis
The RSI Indicator demonstrates 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.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +5.78% 3-day Advance, the price is estimated to grow further. Considering data from situations where LRCX advanced for three days, in 269 of 321 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.
The Aroon Indicator entered an Uptrend today. In 276 of 339 cases where LRCX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 81%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 9 (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 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 Profit vs. Risk Rating rating for this company is 39 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 72, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 41 (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 85 (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 (31.546) is very high in comparison to the industry average of (8.078). P/E Ratio (54.595) is within average values for comparable stocks, (161.623). LRCX's Projected Growth (PEG Ratio) (1.463) is slightly higher than the industry average of (0.801). Dividend Yield (0.004) settles around the average of (0.002) among similar stocks. P/S Ratio (14.620) is also within normal values, averaging (27.897).
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued 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.
KLAC | LRCX | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 83 | 78 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 88 Overvalued | 85 Overvalued | |
PROFIT vs RISK RATING 1..100 | 44 | 39 | |
SMR RATING 1..100 | 15 | 18 | |
PRICE GROWTH RATING 1..100 | 44 | 41 | |
P/E GROWTH RATING 1..100 | 13 | 9 | |
SEASONALITY SCORE 1..100 | 85 | 90 |
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 (85) in the Electronic Production Equipment industry is in the same range as KLAC (88). This means that LRCX’s stock grew similarly to KLAC’s over the last 12 months.
LRCX's Profit vs Risk Rating (39) in the Electronic Production Equipment industry is in the same range as KLAC (44). 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.
LRCX's Price Growth Rating (41) in the Electronic Production Equipment industry is in the same range as KLAC (44). This means that LRCX’s stock grew similarly to KLAC’s over the last 12 months.
LRCX's P/E Growth Rating (9) in the Electronic Production Equipment industry is in the same range as KLAC (13). This means that LRCX’s stock grew similarly to KLAC’s over the last 12 months.
| KLAC | LRCX | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 90% | 1 day ago 90% |
| Stochastic ODDS (%) | 1 day ago 90% | 1 day ago 85% |
| Momentum ODDS (%) | 1 day ago 68% | 1 day ago 62% |
| MACD ODDS (%) | 1 day ago 60% | 1 day ago 57% |
| TrendWeek ODDS (%) | 1 day ago 63% | 1 day ago 64% |
| TrendMonth ODDS (%) | 1 day ago 70% | 1 day ago 71% |
| Advances ODDS (%) | 15 days ago 77% | 15 days ago 84% |
| Declines ODDS (%) | 1 day ago 59% | 1 day ago 64% |
| BollingerBands ODDS (%) | 1 day ago 90% | 1 day ago 79% |
| Aroon ODDS (%) | 1 day ago 68% | 1 day ago 81% |
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 5 TA indicator(s) are bullish while LRCX’s TA Score has 5 bullish TA indicator(s).
- KLAC’s TA Score: 5 bullish, 5 bearish.
- LRCX’s TA Score: 5 bullish, 5 bearish.
Price Growth
KLAC (@Electronic Production Equipment) experienced а -15.25% price change this week, while LRCX (@Electronic Production Equipment) price change was -17.22% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -18.80%. For the same industry, the average monthly price growth was -9.62%, and the average quarterly price growth was -21.46%.
Reported Earning Dates
KLAC is expected to report earnings on Oct 28, 2026.
LRCX is expected to report earnings on Oct 21, 2026.
Industries' Descriptions
@Electronic Production Equipment (-18.80% 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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