An optical inspection company, which makes tools which optically inspects wafers. They are used after the chip is manufactured to verify it is within specs. They dominate the area with an 80%-90% market share, and potentially even higher on leading edge wafers. Sold his holdings this year after a very strong run, but keeps it on his watch list.
Geopolitical risk. Fantastic semi manufacturer. Leaders in a number of segments. Well positioned. Cyclical sector, so a huge amount of capex will come in, the industry will over expand, and then it will come to a dead stop. Backdrop over the next year is quite good.
(A Top Pick Aug 04/20, Down 12%) We are going to be disciplined and recommend this position be covered. With breach of keep technical support at $200 last week and further follow through this week, it is prudent to cover. There are now growing concerns of China-US trade tensions expanding into semiconductor manufacturers.
Stockchase Research Editor: Michael O'ReillyKLAC is a semi-conductor technology company, as in their wafer technology assists manufacturers in the most efficient production of chips. Semiconductors have enjoyed a surge in demand with the advent of cloud services, AI and upcoming 5G. KLCA also pays a decent yield that safe with a 50% payout ratio and the Board just approved the 11th consecutive dividend increase. The company has just raised its earnings guidance for the full year. Recently reported revenues were up 15%. We would use $185 as a stop loss with an objective towards $235 -- potential 15% upside. Yield 1.64%
A fine company he once owned. Semiconductors have had an enormous run until recently and are taking a break over the summer. Nothing wrong with that, not unusual. Enter this space in September or October. What will end this cycle is a recession.
An optical inspection company, which makes tools which optically inspects wafers. They are used after the chip is manufactured to verify it is within specs. They dominate the area with an 80%-90% market share, and potentially even higher on leading edge wafers. Sold his holdings this year after a very strong run, but keeps it on his watch list.