To The Moon

$KLA-Tencor(KLAC)$ is an American semiconductor company headquartered in Milpitas, California. A sizeable entity with more than ten thousand employees, the firm provides equipment and products that help chip manufacturers manage product quality. The firm has been doing well on the financial front as of late since it has beaten analyst EPS estimates in all four of its latest quarters.

We have seen KLA gathering more than 25% over a 3 month period, so while some of us might be chasing $NVIDIA Corp(NVDA)$ , I feel that we can look at KLA. Here is why, I will share in this article on what my thought are.

KLA (KLAC) Hedge Fund Holdings Investor Sentiment

By the end of Q4 2023, 55 out of the 933 hedge funds covered by Insider Monkey's database had bought and owned KLA’s shares.

If we looked beyond hedge fund, investors are also increasing their portfolio holdings for KLA. The investor sentiment is positive for KLA.

Technical Analysis - When would be a good time to go in

KLA have been trading pretty well above 50-day MA period after October 2023, there is no significant sign of slowdown to go below.

This suggest that there should be more upside coming as semiconductor sector should continue to heat up, as more data center provider continue to increase their infrastructure.

If we look at the KLA ADX, it is currently in developing trend, and with +DI above -DI suggesting a bullish upside, I would expect KLA to continue to do well.

We sometimes need to look beyond a stock which has its rally run, look for the complementing stock, we might find opportunity.

Looking at the RSI, we can see that KLA have been going in and out of the overbought region, and currently it is below the 70 level.

It should not be long before we saw KLA coming back into the overbought region.

Summary

I feel that KLA still have lots of room for upside, and we should be able to see some strong move in coming weeks, as semiconductor sector might be going through a correction period, as market wait for rate cut confirmation.

Appreciate if you could share your thoughts in the comment section whether you think KLA has potential of upside for a semiconductor stock?

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.