KLA vs Texas Instruments
This page compares KLA and Texas Instruments, examining business models, financial performance, and market context in a clear, neutral manner for readers seeking information. It highlights organisational structures, strategies, and industry factors that shape each company, without giving investment advice. Educational content, not financial advice.
This page compares KLA and Texas Instruments, examining business models, financial performance, and market context in a clear, neutral manner for readers seeking information. It highlights organisatio...
Why It's Moving
KLA Shares Climb on Robust Demand Amid Leading Role in Semiconductor Innovation
- Q4 earnings surpassed expectations with revenue up 23.6% year-over-year, signaling sustained strength in chip manufacturing equipment demand.
- KLA is playing a critical role in TSMC's 2nm process transition, positioning it at the forefront of next-generation semiconductor innovation.
- Analysts note KLA's exposure to potential China market restrictions, prompting revenue estimate revisions but overall positive sentiment due to AI sector tailwinds.
Texas Instruments rallies on strong Q3 revenue growth despite cautious Q4 outlook and massive U.S. fab investment
- Q3 revenue rose 14.2% year-over-year to $4.74 billion, surpassing analyst estimates and reflecting robust chip demand in industrial and automotive sectors.
- Management announced a $60 billion-plus investment in new U.S. fabs, signaling confidence in domestic manufacturing but suggesting considerable near-term capital spending that could impact earnings and margins.
- Q4 guidance was cautious with expected revenue between $4.22 billion and $4.58 billion and EPS of $1.13 to $1.39, indicating concerns about demand softness or supply chain dynamics in the near term.
- The company raised its quarterly dividend by 4% to $1.42 per share, underscoring a commitment to shareholder returns amid heavy capital expenditures.
KLA Shares Climb on Robust Demand Amid Leading Role in Semiconductor Innovation
- Q4 earnings surpassed expectations with revenue up 23.6% year-over-year, signaling sustained strength in chip manufacturing equipment demand.
- KLA is playing a critical role in TSMC's 2nm process transition, positioning it at the forefront of next-generation semiconductor innovation.
- Analysts note KLA's exposure to potential China market restrictions, prompting revenue estimate revisions but overall positive sentiment due to AI sector tailwinds.
Texas Instruments rallies on strong Q3 revenue growth despite cautious Q4 outlook and massive U.S. fab investment
- Q3 revenue rose 14.2% year-over-year to $4.74 billion, surpassing analyst estimates and reflecting robust chip demand in industrial and automotive sectors.
- Management announced a $60 billion-plus investment in new U.S. fabs, signaling confidence in domestic manufacturing but suggesting considerable near-term capital spending that could impact earnings and margins.
- Q4 guidance was cautious with expected revenue between $4.22 billion and $4.58 billion and EPS of $1.13 to $1.39, indicating concerns about demand softness or supply chain dynamics in the near term.
- The company raised its quarterly dividend by 4% to $1.42 per share, underscoring a commitment to shareholder returns amid heavy capital expenditures.
Which Baskets Do They Appear In?
The U.S. Semiconductor Surge
Texas Instruments is opening a new U.S. factory to produce iPhone chips for Apple, a move that strengthens the domestic supply chain. This creates a ripple effect, boosting demand for American companies that supply manufacturing equipment and advanced materials to the semiconductor industry.
Published: August 23, 2025
Explore BasketWhich Baskets Do They Appear In?
The U.S. Semiconductor Surge
Texas Instruments is opening a new U.S. factory to produce iPhone chips for Apple, a move that strengthens the domestic supply chain. This creates a ripple effect, boosting demand for American companies that supply manufacturing equipment and advanced materials to the semiconductor industry.
Published: August 23, 2025
Explore BasketInvestment Analysis
KLA
KLAC
Pros
- KLA is a global leader in semiconductor process control and yield management solutions with a strong technological edge and innovation pipeline.
- The company demonstrated robust financial performance in 2025, with revenue increasing by 23.89% to $12.16 billion and earnings up 47.06%.
- KLA has a significant market presence among top chip manufacturers, benefiting from the growing complexity and demand in semiconductor fabrication.
Considerations
- KLA’s stock has recently experienced high volatility and a sharp pullback, declining over 10% within a week despite strong long-term returns.
- The current valuation is relatively high with a price/earnings ratio around 38, which may limit near-term upside given recent price targets are mixed.
- Exposure to the cyclical semiconductor capital equipment market introduces execution and demand risks tied to broader industry fluctuations.
Pros
- Texas Instruments has a strong competitive position with a diversified product portfolio serving analog and embedded processing markets.
- The company benefits from stable cash flow generation and a solid balance sheet supporting consistent dividends and share repurchases.
- Texas Instruments’ market capitalisation of approximately $148 billion reflects its scale and established leadership in the semiconductor industry.
Considerations
- TI’s revenue and stock price growth has been modest recently, with limited year-to-date gains compared to high-growth peers.
- The company faces exposure to macroeconomic uncertainties and cyclicality in semiconductor demand that can impact its operational results.
- Rising competition in analog semiconductors and evolving technology trends could pressure TI’s market share and margin durability.
Why invest with Nemo?
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
KLA vs CrowdStrike
KLA vs CrowdStrike: A stock comparison
KLA vs Palo Alto Networks
KLA vs Palo Alto Networks: stock comparison
KLA vs Robinhood
KLA vs Robinhood: A stock comparison