Deutsche Bank analysts provided their key takeaways from KLA Corporation (NASDAQ:KLAC) Investor Day. The company laid out its 4-year financial model and provided revenues/EPS targets of $14 billion/$38 by 2026 on sustained process control intensity gains (from 6% to 7.25% of WFE) as well as market share gains in both SPC and EPC segments.
Most importantly, the company’s financial outlook suggests a meaningfully bigger and more stable wafer fab equipment (WFE) market given today’s much broader adoption of semiconductors in the industry.
The analysts said they feel strongly about the catalysts to process control growth that the company expects to play out over the next three years: (1) resumed scaling through broad-based EUV adoption and the transition to gate-all-around, (2) growing design starts at advanced nodes, and (3) increased focus on yields at the back-end of line triggered by reliability requirements of automotive semis and advanced packaging.