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KLAC vs TSM
Which Stock Would AI Choose? KLA Corporation (KLAC) vs. Taiwan Semiconductor Manufacturing Company (TSM) Stock Comparison
Key Takeaways
- KLAC has delivered stronger year-to-date (YTD) gains of approximately 49% compared to TSM's 31%, reflecting robust momentum in semiconductor equipment demand.
- TSM commands a significantly larger market capitalization of over $2 trillion versus KLAC's $238 billion, underscoring its dominant foundry position.
- Price-to-earnings (PE) ratio stands lower for TSM at 33.6 compared to KLAC's 52.6, suggesting relatively more attractive valuation.
- Both stocks have experienced recent volatility with multi-percent declines in recent trading sessions amid broader sector pressures, yet maintain positive analyst outlooks.
- AI-driven semiconductor growth serves as a key catalyst for both, with TSM reporting 58% Q1 profit growth and KLAC approaching Q3 earnings.
- Analyst consensus leans "Strong Buy" for TSM and "Moderate Buy/Overweight" for KLAC.
Introduction
KLA Corporation (KLAC) and Taiwan Semiconductor Manufacturing Company (TSM) represent pivotal players in the semiconductor ecosystem—KLAC as a leader in process control and metrology equipment, and TSM as the world's premier pure-play foundry. This comparison is particularly relevant for investors and traders seeking exposure to AI-fueled chip demand, wafer fabrication equipment (WFE) cycles, and advanced node technologies. Amid recent market volatility and sector tailwinds, understanding their relative performance, valuations, and growth drivers aids in evaluating portfolio positioning within the high-growth semiconductor space.
KLAC Overview and Recent Performance
KLA Corporation (KLAC) specializes in inspection, metrology, and data analytics solutions essential for semiconductor manufacturing yield improvement. In recent market activity, KLAC shares have shown significant strength, posting nearly 49% YTD gains amid expanding WFE spending tied to AI infrastructure. However, the stock has faced heightened volatility in recent weeks, including a roughly 5% decline in the latest session, as investors position ahead of its Q3 earnings report expecting $3.38 billion in revenue and $9.16 EPS. Sentiment has been influenced by broader semiconductor trends, geopolitical factors, and positive analyst updates, such as UBS raising its price target to $1,835 while maintaining a Neutral rating. Trading near the upper end of its 52-week range ($674-$1,939), KLAC reflects optimism in hyperscaler capex cycles despite a beta of 1.43 indicating elevated risk.
TSM Overview and Recent Performance
Taiwan Semiconductor Manufacturing Company (TSM), or TSMC, dominates as the largest dedicated chip foundry, producing advanced nodes for clients like Apple, Nvidia, and AMD across AI, high-performance computing, and consumer electronics. Recent performance highlights resilience, with 31% YTD returns driven by surging AI chip demand that propelled Q1 profits up 58% year-over-year to record levels. Shares dipped about 3% in the most recent session amid mixed AI spending outlooks, yet maintain upward trajectory within a 52-week range of $162-$415. Key influences include analyst upgrades—Barclays lifted its target to $470 (Overweight)—and events like a $231 million Arm share sale. With a market cap exceeding $2 trillion, lower beta of 1.25, and PE of 33.6, TSM benefits from 70% foundry market share and robust demand forecasts.
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Head-to-Head Comparison
KLAC and TSM both thrive on semiconductor expansion, but differ in business models: KLAC provides critical equipment for fab efficiency, tying growth to WFE capex from foundries like TSM, while TSM manufactures chips directly, capturing downstream AI demand. Growth drivers overlap in advanced nodes and hyperscaler investments, yet KLAC exhibits stronger recent momentum with superior YTD returns, contrasted by TSM's scale advantages. Risk factors include KLAC's cyclical equipment exposure (higher beta) versus TSM's geopolitical Taiwan risks. Sector exposure is pure-play semis for both, with market sentiment buoyed by AI but tempered by recent pullbacks; TSM trades at a discount on multiples, while KLAC commands a premium for growth visibility.
Tickeron AI Verdict
Tickeron’s AI currently favors TSM over KLAC based on trend consistency in AI demand, lower relative valuation (PE 33.6 vs. 52.6), massive scale providing stability, and stronger analyst consensus ("Strong Buy" with targets around $450-$470). While KLAC offers compelling momentum and earnings catalysts, TSM's positioning suggests higher probability of outperformance amid ongoing sector recovery.
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 Buy and TSM 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 whileTSM’s FA Score has 3 green FA rating(s).
- KLAC’s FA Score: 4 green, 1 red.
- TSM’s FA Score: 3 green, 2 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 TSM’s TA Score has 4 bullish TA indicator(s).
- KLAC’s TA Score: 4 bullish, 4 bearish.
- TSM’s TA Score: 4 bullish, 4 bearish.
Price Growth
KLAC (@Electronic Production Equipment) experienced а +31.94% price change this week, while TSM (@Semiconductors) price change was +2.35% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was +17.31%. For the same industry, the average monthly price growth was +9.95%, and the average quarterly price growth was +135.39%.
The average weekly price growth across all stocks in the @Semiconductors industry was +4.34%. For the same industry, the average monthly price growth was +5.81%, and the average quarterly price growth was +92.59%.
Reported Earning Dates
KLAC is expected to report earnings on Jul 23, 2026.
TSM is expected to report earnings on Jul 16, 2026.
Industries' Descriptions
@Electronic Production Equipment (+17.31% 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 (+4.34% 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 | TSM | KLAC / TSM | |
| Capitalization | 332B | 1.9T | 18% |
| EBITDA | 6.06B | 2.99T | 0% |
| Gain YTD | 115.257 | 40.611 | 284% |
| P/E Ratio | 72.09 | 36.49 | 198% |
| Revenue | 13.1B | 4.1T | 0% |
| Total Cash | 613M | N/A | - |
| Total Debt | 6.15B | N/A | - |
KLAC | TSM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 37 | 40 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 91 Overvalued | 63 Fair valued | |
PROFIT vs RISK RATING 1..100 | 2 | 5 | |
SMR RATING 1..100 | 13 | 26 | |
PRICE GROWTH RATING 1..100 | 2 | 39 | |
P/E GROWTH RATING 1..100 | 9 | 22 | |
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.
TSM's Valuation (63) in the Semiconductors industry is in the same range as KLAC (91) in the Electronic Production Equipment industry. This means that TSM’s stock grew similarly to KLAC’s over the last 12 months.
KLAC's Profit vs Risk Rating (2) in the Electronic Production Equipment industry is in the same range as TSM (5) in the Semiconductors industry. This means that KLAC’s stock grew similarly to TSM’s over the last 12 months.
KLAC's SMR Rating (13) in the Electronic Production Equipment industry is in the same range as TSM (26) in the Semiconductors industry. This means that KLAC’s stock grew similarly to TSM’s over the last 12 months.
KLAC's Price Growth Rating (2) in the Electronic Production Equipment industry is somewhat better than the same rating for TSM (39) in the Semiconductors industry. This means that KLAC’s stock grew somewhat faster than TSM’s over the last 12 months.
KLAC's P/E Growth Rating (9) in the Electronic Production Equipment industry is in the same range as TSM (22) in the Semiconductors industry. This means that KLAC’s stock grew similarly to TSM’s over the last 12 months.
| KLAC | TSM | |
|---|---|---|
| RSI ODDS (%) | 3 days ago 65% | 3 days ago 69% |
| Stochastic ODDS (%) | 3 days ago 65% | 3 days ago 73% |
| Momentum ODDS (%) | 3 days ago 81% | 3 days ago 79% |
| MACD ODDS (%) | 3 days ago 84% | 3 days ago 67% |
| TrendWeek ODDS (%) | 3 days ago 77% | 3 days ago 74% |
| TrendMonth ODDS (%) | 3 days ago 79% | 3 days ago 76% |
| Advances ODDS (%) | 3 days ago 77% | 3 days ago 72% |
| Declines ODDS (%) | 17 days ago 61% | 27 days ago 62% |
| BollingerBands ODDS (%) | 3 days ago 66% | 3 days ago 69% |
| Aroon ODDS (%) | 3 days ago 80% | 3 days ago 74% |
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KLAC and
Correlation & Price change
A.I.dvisor indicates that over the last year, KLAC has been closely correlated with LRCX. These tickers have moved in lockstep 86% of the time. This A.I.-generated data suggests there is a high statistical probability that if KLAC jumps, then LRCX could also see price increases.
| Ticker / NAME | Correlation To KLAC | 1D Price Change % | ||
|---|---|---|---|---|
| KLAC | 100% | +5.55% | ||
| LRCX - KLAC | 86% Closely correlated | +1.18% | ||
| AMAT - KLAC | 85% Closely correlated | +2.64% | ||
| NVMI - KLAC | 81% Closely correlated | +4.19% | ||
| ADI - KLAC | 79% Closely correlated | +1.37% | ||
| QCOM - KLAC | 77% Closely correlated | +4.32% | ||
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TSM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TSM has been closely correlated with ASML. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if TSM jumps, then ASML could also see price increases.
| Ticker / NAME | Correlation To TSM | 1D Price Change % | ||
|---|---|---|---|---|
| TSM | 100% | +0.68% | ||
| ASML - TSM | 74% Closely correlated | -1.89% | ||
| LRCX - TSM | 73% Closely correlated | +1.18% | ||
| KLAC - TSM | 71% Closely correlated | +5.55% | ||
| AMAT - TSM | 71% Closely correlated | +2.64% | ||
| CAMT - TSM | 66% Closely correlated | +4.95% | ||
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