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ENTG or KLAC or TXN
Which Stock Would AI Choose? Entegris (ENTG) vs. KLA Corporation (KLAC) vs. Texas Instruments (TXN) Stock Comparison
Key Takeaways
- Three distinct semiconductor plays: ENTG provides advanced materials and purity solutions; KLAC dominates process control and inspection equipment; TXN is the world's largest analog semiconductor producer with a broadly diversified customer base.
- AI exposure varies significantly: KLAC and ENTG derive a substantial portion of revenue from advanced node manufacturing tied to AI chip production, while TXN benefits more indirectly through industrial and data-center recovery tailwinds.
- Scale and profitability diverge: KLAC generates over $12 billion in annual revenue with operating margins above 40%, TXN produces around $18 billion with margins in the mid-30s, while ENTG operates at roughly $3.2 billion with thinner net margins near 7.4% as it absorbs new facility costs.
- Valuation profiles differ sharply: ENTG trades at a notably elevated price-to-earnings (P/E) multiple above 85x on trailing earnings, KLAC sits at a more moderate ~44x, and TXN trades at a still-substantial but comparatively grounded multiple following its recent pullback.
- Geopolitical risk is concentrated: KLAC has the highest China revenue exposure at approximately 33% of sales, making it more sensitive to export control developments than ENTG or TXN.
- Capital return philosophies contrast: TXN is a dividend stalwart returning roughly $6.5 billion annually to shareholders, KLAC balances buybacks and dividends, while ENTG prioritizes debt reduction and reinvestment for growth.
Introduction
The semiconductor industry sits at the intersection of artificial intelligence proliferation, geopolitical realignment, and cyclical manufacturing dynamics. For investors evaluating how to position within this complex landscape, comparing companies that operate at different points in the semiconductor value chain can reveal distinct risk-reward profiles. ENTG (Entegris), KLAC (KLA Corporation), and TXN (Texas Instruments) represent three fundamentally different approaches to semiconductor industry exposure — a materials and consumables supplier, a capital equipment leader, and a diversified chip manufacturer, respectively. This comparison examines how each company has navigated recent market conditions, where their growth drivers diverge, and what trade-offs investors face when choosing among them.
ENTG Overview and Recent Performance
Entegris is a specialized provider of advanced materials, filtration systems, and process solutions that semiconductor manufacturers depend on to achieve high production yields. The company's portfolio spans materials science consumables — including chemical-mechanical planarization (CMP) slurries, pads, and deposition materials — as well as fluid handling, gas purification, and wafer transport products. In recent months, Entegris has reported mixed financial results: fourth quarter 2025 revenue reached $824 million, reflecting a 3% year-over-year decline but a 2% sequential improvement, while non-GAAP earnings per share (EPS) of $0.70 exceeded analyst expectations. Full-year free cash flow improved to $404 million, representing a 12.7% margin, as the company deliberately reduced inventory and tightened operational discipline.
Sentiment around ENTG has been shaped by converging headwinds and tailwinds. On the positive side, management has emphasized that roughly 60% of revenue comes from advanced nodes, positioning the company to benefit as chipmakers adopt more complex device architectures for AI applications. Record quarterly sales in liquid filtration underscore this demand. Conversely, margin compression stemming from underutilized new manufacturing facilities in Taiwan and Colorado, combined with CapEx-driven revenue that declined 7% in 2025, has weighed on profitability. The company's net leverage of 3.8 times and a trailing P/E multiple above 85x have drawn scrutiny, though management's outlook for 2026 anticipates accelerating content-per-wafer gains as node transitions progress in both logic and memory.
KLAC Overview and Recent Performance
KLA Corporation is the global leader in process control and yield management systems for the semiconductor industry. Its inspection and metrology tools are essential for detecting microscopic defects during chip fabrication, particularly as transistor geometries shrink to advanced nodes. The company also has a growing presence in advanced packaging inspection, an area gaining strategic importance as chiplet-based architectures proliferate. In its most recent reported periods, KLAC delivered standout financial performance: fiscal year 2025 revenue reached $12.16 billion, a 24% increase from the prior year, while quarterly free cash flow surpassed $1 billion for the first time. The December 2025 quarter saw revenue of $3.30 billion with non-GAAP EPS of $8.85, also exceeding consensus estimates.
KLAC's recent performance has been fueled by robust demand from leading-edge foundry and logic customers investing heavily in AI-related capacity. Advanced packaging revenue has reached an annualized run rate of approximately $850 million, reflecting the company's ability to capture growth beyond traditional wafer inspection. However, several risk factors have tempered enthusiasm. China represented roughly 33% of revenue in recent periods, and U.S. export controls have already begun limiting service and equipment deliveries to certain Chinese customers, creating an estimated revenue headwind of several hundred million dollars. Tariffs introduced additional gross margin pressure of roughly 100 basis points (one percentage point). While management guided for flattish sequential results amid persistent uncertainty, the company's 40%-plus operating margins and strong capital return program — which distributed over $3 billion to shareholders in its last fiscal year — continue to distinguish KLAC within the semiconductor equipment peer group.
TXN Overview and Recent Performance
Texas Instruments is the world's largest producer of analog semiconductors and a major supplier of embedded processors, serving over 100,000 customers across industrial, automotive, personal electronics, communications, and enterprise computing markets. Unlike ENTG or KLAC, TXN is a chip manufacturer itself, operating an extensive network of 300mm wafer fabrication facilities (factories that process silicon wafers measuring 300 millimeters in diameter, offering superior cost efficiency compared to older 200mm production). The company's fourth quarter 2025 results showed revenue of $4.42 billion, a 10% year-over-year increase but a 7% sequential decline. Full-year free cash flow reached $2.9 billion, nearly doubling from 2024 levels, reflecting the benefits of the company's multi-year manufacturing expansion strategy.
Recent market activity around TXN has been influenced by conflicting signals. On one hand, the company delivered sequential revenue growth across all end markets during the third quarter of 2025, with the data center segment surging approximately 70% year-over-year — evidence that AI infrastructure spending is trickling down to analog content. On the other hand, the automotive market — a cornerstone of TXN's business — has faced headwinds from 25% import tariffs and uneven demand recovery. Quarterly guidance has at times disappointed Wall Street expectations, contributing to stock price volatility. TXN's share price has oscillated within a wide range, reflecting the tug-of-war between optimism around industrial recovery and caution regarding tariff-related disruptions. With trailing twelve-month free cash flow of $2.9 billion and $6.5 billion returned to shareholders through dividends and buybacks, TXN remains one of the semiconductor industry's most durable cash-generating franchises.
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Head-to-Head Comparison
When comparing these three companies across key investment dimensions, several contrasts stand out. Business model and cyclical sensitivity: ENTG generates recurring revenue through consumable materials that are continuously consumed during chip production, providing a degree of insulation from the sharp capital expenditure cycles that affect KLAC's equipment sales. TXN, as a chip producer, is most directly exposed to end-market demand across its vast customer base. Growth catalyst alignment: KLAC and ENTG are both leveraged to the increasing complexity of semiconductor manufacturing — as chips become harder to fabricate, demand rises for KLAC's inspection tools and ENTG's purity solutions. TXN benefits from a different dynamic: the proliferation of electronics across automotive and industrial applications steadily increases analog content per device, a secular trend independent of node transitions. Margin and profitability profile: KLAC leads with operating margins consistently above 40% and GAAP (Generally Accepted Accounting Principles) net income exceeding $4 billion annually. TXN posts mid-30s operating margins while absorbing heavy capital expenditures. ENTG's net margin has compressed to approximately 7.4% as it ramps new facilities, though non-GAAP adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins remain near 27-28%. Valuation sensitivity: ENTG's elevated P/E multiple leaves it vulnerable to any disappointment in the pace of margin recovery, while KLAC's multiple reflects confidence in sustained AI-driven equipment spending. TXN's valuation has moderated following its recent stock pullback, offering a different entry point for value-conscious investors. Geopolitical exposure: KLAC's roughly one-third China revenue share makes it the most sensitive to export control policy shifts, whereas TXN and ENTG have diversified manufacturing footprints and somewhat lower proportional China exposure.
Tickeron AI Verdict
Based on observable trend consistency, relative stability, and alignment with structural growth catalysts, Tickeron's AI analytical framework would likely find KLAC to be the most favorably positioned among these three stocks in the current environment. The company combines market-leading process control technology with expanding relevance in advanced packaging, robust free cash flow generation, and operating margins that provide a buffer against tariff-related margin erosion. While China-related regulatory risk remains a meaningful variable, KLAC's recent quantification of export-control impacts suggests estimates may now be appropriately de-risked. TXN offers a compelling long-term cash-compounding narrative, but near-term tariff uncertainty in automotive markets and uneven industrial recovery introduce ambiguity in trend signals. ENTG possesses the strongest secular growth narrative tied to increasing content-per-wafer at advanced nodes, yet its elevated leverage, compressed net margins, and demanding valuation multiple suggest the trend would benefit from further confirmation before signaling broad conviction. This probabilistic assessment reflects current observable data and may shift as new earnings data and macroeconomic signals 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.
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).
ENTG’s FA Score shows that 1 FA rating(s) are green whileKLAC’s FA Score has 3 green FA rating(s), and TXN’s FA Score reflects 3 green FA rating(s).
- ENTG’s FA Score: 1 green, 4 red.
- KLAC’s FA Score: 3 green, 2 red.
- TXN’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.
ENTG’s TA Score shows that 4 TA indicator(s) are bullish while KLAC’s TA Score has 3 bullish TA indicator(s), and TXN’s TA Score reflects 2 bullish TA indicator(s).
- ENTG’s TA Score: 4 bullish, 6 bearish.
- KLAC’s TA Score: 3 bullish, 6 bearish.
- TXN’s TA Score: 2 bullish, 6 bearish.
Price Growth
ENTG (@Electronic Production Equipment) experienced а -4.55% price change this week, while KLAC (@Electronic Production Equipment) price change was -8.11% , and TXN (@Semiconductors) price fluctuated -8.81% for the same time period.
The average weekly price growth across all stocks in the @Electronic Production Equipment industry was -8.80%. For the same industry, the average monthly price growth was -19.09%, and the average quarterly price growth was +45.99%.
The average weekly price growth across all stocks in the @Semiconductors industry was -9.55%. For the same industry, the average monthly price growth was -15.20%, and the average quarterly price growth was +39.11%.
Reported Earning Dates
ENTG is expected to report earnings on Aug 04, 2026.
KLAC is expected to report earnings on Jul 28, 2026.
TXN is expected to report earnings on Jul 22, 2026.
Industries' Descriptions
@Electronic Production Equipment (-8.80% 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.
@Semiconductors (-9.55% 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.
| ENTG | KLAC | TXN | |
| Capitalization | 21.1B | 278B | 258B |
| EBITDA | 848M | 6.06B | 8.82B |
| Gain YTD | 64.927 | 79.916 | 65.615 |
| P/E Ratio | 80.20 | 60.25 | 48.55 |
| Revenue | 3.24B | 13.1B | 18.4B |
| Total Cash | 443M | 613M | 5.1B |
| Total Debt | 3.76B | 6.15B | 14B |
ENTG | KLAC | TXN | ||
|---|---|---|---|---|
OUTLOOK RATING 1..100 | 50 | 50 | 50 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 67 Overvalued | 90 Overvalued | 72 Overvalued | |
PROFIT vs RISK RATING 1..100 | 83 | 20 | 28 | |
SMR RATING 1..100 | 81 | 13 | 31 | |
PRICE GROWTH RATING 1..100 | 51 | 38 | 41 | |
P/E GROWTH RATING 1..100 | 11 | 12 | 32 | |
SEASONALITY SCORE 1..100 | 75 | 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.
ENTG's Valuation (67) in the Electronic Production Equipment industry is in the same range as TXN (72) in the Semiconductors industry, and is in the same range as KLAC (90) in the Electronic Production Equipment industry. This means that ENTG's stock grew similarly to TXN’s and similarly to KLAC’s over the last 12 months.
KLAC's Profit vs Risk Rating (20) in the Electronic Production Equipment industry is in the same range as TXN (28) in the Semiconductors industry, and is somewhat better than the same rating for ENTG (83) in the Electronic Production Equipment industry. This means that KLAC's stock grew similarly to TXN’s and somewhat faster than ENTG’s over the last 12 months.
KLAC's SMR Rating (13) in the Electronic Production Equipment industry is in the same range as TXN (31) in the Semiconductors industry, and is significantly better than the same rating for ENTG (81) in the Electronic Production Equipment industry. This means that KLAC's stock grew similarly to TXN’s and significantly faster than ENTG’s over the last 12 months.
KLAC's Price Growth Rating (38) in the Electronic Production Equipment industry is in the same range as TXN (41) in the Semiconductors industry, and is in the same range as ENTG (51) in the Electronic Production Equipment industry. This means that KLAC's stock grew similarly to TXN’s and similarly to ENTG’s over the last 12 months.
ENTG's P/E Growth Rating (11) in the Electronic Production Equipment industry is in the same range as KLAC (12) in the Electronic Production Equipment industry, and is in the same range as TXN (32) in the Semiconductors industry. This means that ENTG's stock grew similarly to KLAC’s and similarly to TXN’s over the last 12 months.
| ENTG | KLAC | TXN | |
|---|---|---|---|
| RSI ODDS (%) | 3 days ago 80% | 3 days ago 64% | N/A |
| Stochastic ODDS (%) | 3 days ago 81% | 3 days ago 88% | 3 days ago 62% |
| Momentum ODDS (%) | 3 days ago 83% | 3 days ago 69% | 3 days ago 74% |
| MACD ODDS (%) | 3 days ago 76% | 3 days ago 69% | 3 days ago 67% |
| TrendWeek ODDS (%) | 3 days ago 73% | 3 days ago 61% | 3 days ago 61% |
| TrendMonth ODDS (%) | 3 days ago 75% | 3 days ago 66% | 3 days ago 57% |
| Advances ODDS (%) | 11 days ago 65% | 10 days ago 78% | 10 days ago 59% |
| Declines ODDS (%) | 4 days ago 70% | 3 days ago 57% | 3 days ago 57% |
| BollingerBands ODDS (%) | 3 days ago 83% | 3 days ago 72% | 3 days ago 73% |
| Aroon ODDS (%) | 3 days ago 70% | 3 days ago 83% | N/A |
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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 88% 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% | -3.02% | ||
| LRCX - KLAC | 88% Closely correlated | -2.39% | ||
| AMAT - KLAC | 87% Closely correlated | -5.57% | ||
| NVMI - KLAC | 83% Closely correlated | -3.03% | ||
| ADI - KLAC | 79% Closely correlated | -1.36% | ||
| ASML - KLAC | 79% Closely correlated | -2.09% | ||
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TXN and
Correlation & Price change
A.I.dvisor indicates that over the last year, TXN has been closely correlated with MCHP. These tickers have moved in lockstep 79% of the time. This A.I.-generated data suggests there is a high statistical probability that if TXN jumps, then MCHP could also see price increases.
| Ticker / NAME | Correlation To TXN | 1D Price Change % | ||
|---|---|---|---|---|
| TXN | 100% | -2.47% | ||
| MCHP - TXN | 79% Closely correlated | -0.88% | ||
| MCHPP - TXN | 79% Closely correlated | -0.70% | ||
| ADI - TXN | 78% Closely correlated | -1.36% | ||
| ON - TXN | 68% Closely correlated | -0.85% | ||
| LRCX - TXN | 68% Closely correlated | -2.39% | ||
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