• Recent industry developments saw Nvidia announce a US$5 billion investment in Intel, with both companies collaborating on innovative products, and SoftBank following with a US$2 billion investment in Intel, fueling heightened optimism across the U.S. semiconductor industry.

• Although KLA was not directly involved in these transactions, the increased capital flowing to major chipmakers like Intel may indirectly benefit KLA by driving expectations for higher demand in semiconductor equipment and process control solutions.

• We’ll explore how the surge in capital investment at key chipmakers could influence KLA’s investment outlook and future demand trends.

We’ve found 19 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

To feel comfortable as a KLA shareholder, you need to believe that demand for process control and metrology tools will rise as chipmakers accelerate investments in advanced manufacturing. The latest influx of US$5 billion from Nvidia and US$2 billion from SoftBank into Intel is expected to spur industry-wide capital spending, but its short-term impact on KLA’s earnings outlook still hinges most on the pace of wafer fab equipment investments, a core demand driver. KLA’s biggest risk remains potential revenue pressure from ongoing normalization in China and heightened tariff exposure, which could outweigh near-term optimism if conditions deteriorate.

Among recent company announcements, KLA’s robust fiscal year 2025 results stand out: revenue climbed to US$12,156.16 million with net income of US$4,061.64 million, and dividend payouts increased. This performance reinforces the core catalyst of rising process control intensity at advanced logic, memory, and packaging customers, areas that could be fueled further by new capital entering U.S. chipmakers and ongoing expansion of KLA’s installed base.

By contrast, investors must be aware that further escalation in global tariffs could create…

Read the full narrative on KLA (it’s free!)

KLA’s narrative projects $14.8 billion in revenue and $5.3 billion in earnings by 2028. This requires 6.9% yearly revenue growth and a $1.2 billion increase in earnings from the current $4.1 billion level.

Uncover how KLA’s forecasts yield a $929.68 fair value, a 13% downside to its current price.

Six Simply Wall St Community members estimate fair value between US$576,800 and US$929,700, offering a wide span of opinions. As fresh capital flows into major chipmakers, how KLA leverages its position in advanced packaging will remain key, explore several viewpoints to see how expectations differ.