MU - KLA Corporation: Is Positioned For A Cyclical Upswing Driven By AI

2024-07-10 07:31:25 ET

Summary

• KLA Corp. is poised for growth as semiconductor manufacturing capacity increases domestically with the assistance of the CHIPS Act.
• The company is expected to benefit from the construction of regional AI factories, automotive ADAS systems, and AI-enabled smartphones and PCs.
• Investments in EUV lithography and advanced packaging will benefit KLA Corp. during the next cycle of investments for 3nm and 2nm chips.

KLA Corp. ( KLAC ) is nearing a cyclical upswing as customers are nearing their major capital allocations to semiconductor manufacturing equipment as they finalize the construction of their domestic foundries. The Semiconductor Industry Association, in partnership with Boston Consulting Group , projects that the domestic capacity for semiconductor manufacturing will grow by 3x from 2022 figures with the assistance of the CHIPS Act....

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