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KLAC vs TSEM
Which Stock Would AI Choose? KLA Corporation (KLAC) vs. Tower Semiconductor Ltd. (TSEM) Stock Comparison
Key Takeaways
- KLAC boasts a larger market cap of $244B and higher profitability with 35.66% profit margins, driven by AI-related process control demand.
- TSEM shows superior momentum with 74.87% YTD and 486% one-year returns, fueled by specialty analog foundry growth in AI and defense.
- Recent KLAC catalysts include a 10-for-1 stock split, 21% dividend hike, and strong Q3 earnings beat on advanced packaging revenue.
- TSEM benefits from partnerships like Axiro for U.S. defense radar chips and capacity expansions in Japan for AI photonics.
- KLAC trades at a trailing P/E of 52.94 with $13.1B TTM revenue, while TSEM has a higher P/E of 108.77 on $1.57B revenue.
- Both stocks thrive in semiconductors but differ in scale: KLAC offers stability, TSEM higher growth potential amid volatility.
Introduction
This stock comparison examines KLAC and TSEM, two key players in the semiconductor industry amid surging demand for AI infrastructure and advanced chips. KLA Corporation provides essential process control equipment, while Tower Semiconductor operates as a specialty foundry for analog and mixed-signal ICs (integrated circuits). Traders seeking exposure to semiconductor growth, investors tracking relative performance, and those evaluating market positioning in recent volatility will find value here. Both have outperformed benchmarks in recent market activity, highlighting contrasts in business models, momentum, and risk profiles.
KLAC Overview and Recent Performance
KLA Corporation (KLAC) is a leading provider of process control and yield management solutions for semiconductor manufacturing, including inspection tools, metrology systems, and software for wafers, reticles, and packaging. Operating in the semiconductor equipment sector, it supports advanced nodes critical for AI chips through segments like Semiconductor Process Control and Packaging.
In recent weeks, KLAC shares have surged, posting 54% YTD and 168% one-year returns, with a market cap of $244 billion. Key drivers include Q3 fiscal 2026 earnings that beat estimates at $3.42 billion revenue and $9.40 EPS (earnings per share), alongside upbeat Q4 guidance tied to AI demand. The company announced a 10-for-1 stock split, a 21% quarterly dividend increase to $2.30, and a $7 billion buyback expansion, boosting sentiment. Advanced packaging revenue momentum, projected toward $1 billion, has fueled gains amid broader AI infrastructure spending, though high debt levels warrant monitoring.
TSEM Overview and Recent Performance
Tower Semiconductor Ltd. (TSEM) functions as an independent foundry specializing in high-value analog semiconductor solutions, offering customizable platforms like SiGe (silicon-germanium), SiPho (silicon photonics), RF CMOS, power management, and sensors for markets including automotive, industrial, aerospace, and AI data centers.
Recent market activity has propelled TSEM shares higher, with 75% YTD and over 486% one-year gains, reflecting a $25 billion market cap. Developments include partnerships such as with Axiro for U.S.-made defense radar chips using high-efficiency SiGe ICs, and expansions like 300mm capacity in Japan to meet AI demand. Q1 2026 results and investor conference participation underscore operational strength. While revenue reached $1.57 billion TTM with solid EPS growth, higher P/E and geopolitical risks as an Israel-based firm contribute to volatility, balanced by low debt and diversified global fabs.
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Head-to-Head Comparison
KLAC and TSEM both capitalize on semiconductor tailwinds but diverge in models: KLAC’s equipment sales yield recurring service revenue and high margins (36%), while TSEM’s pure-play foundry relies on customer designs for niche analog tech.
Growth drivers align on AI—KLAC via process tools for advanced packaging, TSEM through SiPho and power ICs—but TSEM exhibits stronger recent momentum (75% YTD vs. 54%). Risk factors include KLAC’s capital intensity and debt (105% debt/equity), versus TSEM’s geopolitical exposure and negative free cash flow. Sector exposure favors KLAC’s broad electronics diversification over TSEM’s specialty focus. Market sentiment leans bullish on both, with KLAC’s capital returns signaling stability and TSEM’s partnerships hinting at upside, though KLAC trades at a relative discount on P/E.
Tickeron AI Verdict
Tickeron’s AI currently favors KLAC for its trend consistency, superior profitability, scale, and shareholder-friendly catalysts like the stock split and buybacks, positioning it strongly amid sustained AI equipment demand. While TSEM offers higher momentum and growth prospects in analog niches, its elevated valuation and risks suggest greater volatility. Observable factors point to KLAC’s relative stability with probabilistic edge in current conditions.
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 TSEM 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 whileTSEM’s FA Score has 2 green FA rating(s).
- KLAC’s FA Score: 4 green, 1 red.
- TSEM’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 3 TA indicator(s) are bullish while TSEM’s TA Score has 4 bullish TA indicator(s).
- KLAC’s TA Score: 3 bullish, 5 bearish.
- TSEM’s TA Score: 4 bullish, 4 bearish.
Price Growth
KLAC (@Electronic Production Equipment) experienced а +7.36% price change this week, while TSEM (@Semiconductors) price change was +33.66% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -0.06%. For the same industry, the average monthly price growth was +21.69%, and the average quarterly price growth was +145.10%.
The average weekly price growth across all stocks in the @Semiconductors industry was +4.71%. For the same industry, the average monthly price growth was +39.67%, and the average quarterly price growth was +81.26%.
Reported Earning Dates
KLAC is expected to report earnings on Jul 23, 2026.
TSEM is expected to report earnings on Aug 04, 2026.
Industries' Descriptions
@Electronic Production Equipment (-0.06% 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.
@Semiconductors (+4.71% weekly)The semiconductor industry manufacturers all chip-related products, including research and development. These chips are used in innumerable electronic devices, including computers, cell phones, smartphones, and GPSs. Intel Corporation, NVIDIA Corp., and Broadcomm are some of the prominent players in this industry. Semiconductor companies usually tend to do well during periods of healthy economic growth, thereby inducing further research and development in the industry – which in turn augurs well for productivity and growth in the economy. In the near future, demand for semiconductor products (and possibly innovation within the segment) should only expand further, with the proliferation of 5G, autonomous vehicles, IoT, and various AI-driven electronics set to herald a new, advanced chapter in the technology-driven world as we know it. With burgeoning prospects comes great competition. In 2015, SIA estimated that U.S. semiconductor industry ranks as the second most competitive U.S. industry out of 2882 U.S. industries designated manufacturers by the U.S. Census Bureau.
| KLAC | TSEM | KLAC / TSEM | |
| Capitalization | 247B | 31.2B | 792% |
| EBITDA | 6.06B | 507M | 1,195% |
| Gain YTD | 55.990 | 139.048 | 40% |
| P/E Ratio | 53.61 | 129.95 | 41% |
| Revenue | 13.1B | 1.51B | 866% |
| Total Cash | 4.96B | 1.22B | 405% |
| Total Debt | 6.15B | 164M | 3,747% |
KLAC | TSEM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 78 | 76 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 85 Overvalued | 88 Overvalued | |
PROFIT vs RISK RATING 1..100 | 5 | 2 | |
SMR RATING 1..100 | 14 | 78 | |
PRICE GROWTH RATING 1..100 | 8 | 35 | |
P/E GROWTH RATING 1..100 | 12 | 2 | |
SEASONALITY SCORE 1..100 | 90 | 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.
KLAC's Valuation (85) in the Electronic Production Equipment industry is in the same range as TSEM (88) in the Semiconductors industry. This means that KLAC’s stock grew similarly to TSEM’s over the last 12 months.
TSEM's Profit vs Risk Rating (2) in the Semiconductors industry is in the same range as KLAC (5) in the Electronic Production Equipment industry. This means that TSEM’s stock grew similarly to KLAC’s over the last 12 months.
KLAC's SMR Rating (14) in the Electronic Production Equipment industry is somewhat better than the same rating for TSEM (78) in the Semiconductors industry. This means that KLAC’s stock grew somewhat faster than TSEM’s over the last 12 months.
KLAC's Price Growth Rating (8) in the Electronic Production Equipment industry is in the same range as TSEM (35) in the Semiconductors industry. This means that KLAC’s stock grew similarly to TSEM’s over the last 12 months.
TSEM's P/E Growth Rating (2) in the Semiconductors industry is in the same range as KLAC (12) in the Electronic Production Equipment industry. This means that TSEM’s stock grew similarly to KLAC’s over the last 12 months.
| KLAC | TSEM | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 70% | 3 days ago 64% |
| Stochastic ODDS (%) | 2 days ago 67% | 3 days ago 60% |
| Momentum ODDS (%) | 2 days ago 74% | 3 days ago 72% |
| MACD ODDS (%) | 2 days ago 67% | 3 days ago 72% |
| TrendWeek ODDS (%) | 2 days ago 74% | 3 days ago 71% |
| TrendMonth ODDS (%) | 2 days ago 77% | 3 days ago 76% |
| Advances ODDS (%) | 2 days ago 75% | 5 days ago 69% |
| Declines ODDS (%) | 4 days ago 61% | 9 days ago 60% |
| BollingerBands ODDS (%) | 2 days ago 67% | 3 days ago 58% |
| Aroon ODDS (%) | 2 days ago 84% | 3 days ago 76% |
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| 1 Day | |||
|---|---|---|---|
| ETFs / NAME | Price $ | Chg $ | Chg % |
| FV | 70.33 | 0.28 | +0.40% |
| First Trust Dorsey Wright Focus 5 ETF | |||
| JIG | 83.38 | 0.22 | +0.26% |
| JPMorgan International Growth ETF | |||
| ZJUL | 29.75 | 0.04 | +0.13% |
| Innovator Eq Dfnd Prot ETF - 1Yr Jul | |||
| GSJY | 52.50 | -0.58 | -1.10% |
| Goldman Sachs ActiveBeta® Japan Eq ETF | |||
| JOBX | 27.51 | -2.72 | -9.00% |
| Tradr 2X Long JOBY Daily ETF | |||
TSEM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TSEM has been loosely correlated with AMKR. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if TSEM jumps, then AMKR could also see price increases.
| Ticker / NAME | Correlation To TSEM | 1D Price Change % | ||
|---|---|---|---|---|
| TSEM | 100% | +3.66% | ||
| AMKR - TSEM | 61% Loosely correlated | -3.38% | ||
| AMBA - TSEM | 60% Loosely correlated | -1.29% | ||
| KLIC - TSEM | 60% Loosely correlated | -0.17% | ||
| KLAC - TSEM | 60% Loosely correlated | +2.34% | ||
| LRCX - TSEM | 60% Loosely correlated | +1.26% | ||
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