KLA (KLAC) Valuation Check After Morgan Stanley’s Bullish WFE Outlook and Strong Cash Flow Signals

Simply Wall St.12-15

Morgan Stanley's upbeat wafer fab equipment outlook, supported by demand from TSMC and DRAM, has put KLA (KLAC) back in focus. Strong cash flows and bullish options activity are prompting investors to...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2591976186?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/company-cover/282225-main-header/1756222196364","is_english":true,"pubTime":"2025-12-15 11:24","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2591976186","market":"nz","top_or_hot":-1,"title":"KLA (KLAC) Valuation Check After Morgan Stanley’s Bullish WFE Outlook and Strong Cash Flow Signals","media":"Simply Wall St.","content":"<div>\n<p>Morgan Stanley's upbeat wafer fab equipment outlook, supported by demand from TSMC and DRAM, has put KLA (KLAC) back in focus. Strong cash flows and bullish options activity are prompting investors to...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-klac/kla/news/kla-klac-valuation-check-after-morgan-stanleys-bullish-wfe-o\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>KLA (KLAC) Valuation Check After Morgan Stanley’s Bullish WFE Outlook and Strong Cash Flow Signals</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nKLA (KLAC) Valuation Check After Morgan Stanley’s Bullish WFE Outlook and Strong Cash Flow Signals\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-15 11:24 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/semiconductors/nasdaq-klac/kla/news/kla-klac-valuation-check-after-morgan-stanleys-bullish-wfe-o><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Morgan Stanley's upbeat wafer fab equipment outlook, supported by demand from TSMC and DRAM, has put KLA (KLAC) back in focus. Strong cash flows and bullish options activity are prompting investors to...</p>\n\n<a href=\"https://simplywall.st/stocks/us/semiconductors/nasdaq-klac/kla/news/kla-klac-valuation-check-after-morgan-stanleys-bullish-wfe-o\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2290526834.HKD","symbol_name":"BGF NEXT GENERATION TECHNOLOGY \"A2\" (HKDHDG) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-klac/kla/news/kla-klac-valuation-check-after-morgan-stanleys-bullish-wfe-o","article_id":"2591976186","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/282225-main-header/1756222196364"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/semiconductors/nasdaq-klac/kla/news/kla-klac-valuation-check-after-morgan-stanleys-bullish-wfe-o","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2591976186","pubTimestamp":1765769071,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Morgan Stanley's upbeat wafer fab equipment outlook, supported by demand from TSMC and DRAM, has put KLA (KLAC) back in focus. Strong cash flows and bullish options activity are prompting investors to reassess the stock's potential upside.\nSee our latest analysis for KLA.\nDespite a sharp 1 day share price pullback, KLA still sits near its record high at $1,193.92, with a 30 day share price return of 5.25 percent, a 90 day share price return of 20.73 percent and a standout year to date share...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2290526834.HKD":"BGF NEXT GENERATION TECHNOLOGY \"A2\" (HKDHDG) ACC","LU1923623000.USD":"Natixis Thematics AI & Robotics Fund R/A USD","BK4147":"半导体设备","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","BK4519":"光伏太阳能","LU2023250843.SGD":"Allianz Thematica Cl AT Acc H2-SGD","LU1917777945.USD":"安联专题基金Cl AT Acc","IE0008368304.USD":"STEWART INVESTORS WORLDWIDE LEADERS SUSTAINABILITY FUND \"I\" (USD) ACC","LU1861215975.USD":"贝莱德新一代科技基金 A2","KLAC":"科磊","BK4581":"高盛持仓","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","BK4543":"AI","LU2360032135.SGD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (SGDHDG) INC","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","BK4585":"ETF&股票定投概念","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","BLSH":"Bullish","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","IE00BQXX3D17.EUR":"GUINNESS GLOBAL INNOVATORS \"C\" (EUR) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU2360107168.USD":"BGF NEXT GENERATION TECHNOLOGY \"A4\" (USD) INC","IE00BQXX3C00.GBP":"GUINNESS GLOBAL INNOVATORS \"C\" (GBP) ACC","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","LU1974910355.USD":"Allianz Thematica Cl AMg DIS USD","IE00BQXX3F31.USD":"GUINNESS GLOBAL INNOVATORS \"C\" (USD) ACC","LU0187121727.USD":"FIDELITY SUSTAINABLE US EQUITY \"A\" (USD) INC","LU2125154935.USD":"ALLSPRING (LUX) WF GLOBAL EQUITY ENHANCED INCOME \"I\" (USD) INC","LU1951198990.SGD":"Natixis Thematics AI & Robotics Fund H-R/A SGD-H","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","LU0274383776.USD":"MANULIFE GF US SMALL CAP EQUITY \"AA\" (USD) INC","LU2244417387.USD":"FIDELITY SUSTAINABLE US EQUITY \"A\" (USD) ACC","BK4588":"碎股","LU2089985449.USD":"MANULIFE GF GLOBAL SEMICONDUCTOR OPPORTUNITIES \"AA\" (USD) ACC","BK4112":"金融交易所和数据","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC"},"translate_title":"摩根士丹利看涨WFE前景和强劲现金流信号后，KLA(KLAC)估值检查","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KLAC":1.5,"BLSH":1.5},"content_text":"Morgan Stanley's upbeat wafer fab equipment outlook, supported by demand from TSMC and DRAM, has put KLA (KLAC) back in focus. Strong cash flows and bullish options activity are prompting investors to reassess the stock's potential upside. See our latest analysis for KLA. Despite a sharp 1 day share price pullback, KLA still sits near its record high at $1,193.92, with a 30 day share price return of 5.25 percent, a 90 day share price return of 20.73 percent and a standout year to date share price return of 87.54 percent. Its 5 year total shareholder return of 380.65 percent shows that long term momentum remains firmly intact. If KLA's run has you thinking about where else capital might be working hard in semis and adjacent tech, it could be worth exploring high growth tech and AI stocks as your next hunting ground. With the stock already brushing record highs and trading just below analyst targets, the key question is simple: Is KLA still mispriced relative to its cash flow power, or is the market already baking in the next leg of growth? Most Popular Narrative: 7.3% Undervalued With the narrative fair value sitting above KLA's last close of $1,193.92, the story frames current pricing as lagging its long term cash flow potential.  Multiyear customer investment roadmaps, especially at the leading edge in logic/foundry and HBM, are being supported by government incentives worldwide and increasing process complexity, giving KLA visibility into continued secular capital intensity and positioning the company to outperform WFE growth through 2026, sustaining long run revenue and FCF growth.  Read the complete narrative. Curious what kind of revenue runway, margin gains, and earnings power are needed to back that higher fair value claim? The narrative leans on ambitious growth, rising profitability, and a punchy future earnings multiple. Want to see exactly how those moving parts add up to that price tag? Result: Fair Value of $1287.27 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, that upside case still hinges on smooth execution, with China exposure and potential tariff escalation both capable of derailing those growth and margin assumptions. Find out about the key risks to this KLA narrative. Another Take: Market Ratios Flash Caution While the narrative points to a fair value above today’s price, the earnings multiple tells a cooler story. KLA trades on 37 times earnings, roughly in line with the US semiconductor average at 37 times and just below peers at 38.2 times, but well above its 28.5 times fair ratio. That gap suggests less room for error if growth or margins disappoint, so the question is whether the market is paying too much for quality. See what the numbers say about this price — find out in our valuation breakdown. NasdaqGS:KLAC PE Ratio as at Dec 2025 Build Your Own KLA Narrative If you see the story differently or want to stress test your own assumptions using the same data, you can build a custom view in minutes: Do it your way. A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding KLA. Ready for your next investing move? Do not stop at one great story. Use the Simply Wall Street screener to uncover fresh, data driven ideas that could sharpen and strengthen your portfolio.  Explore potential mispriced quality by targeting companies trading below intrinsic value through these 908 undervalued stocks based on cash flows that may offer stronger long term upside. Position yourself for the next wave of innovation by backing potential winners in automation, data, and intelligent software with these 26 AI penny stocks. Seek dependable cash returns while markets shift by focusing on income opportunities in these 13 dividend stocks with yields > 3% that can support a steadier compounding journey.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTechValuation is complex, but we're here to simplify it.Discover if KLA might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.12","shortVersion":"4.35.12","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2591976186","isCrawlerRequest":true}