Live Report · Updated January 26, 2026

KLA vs Lam Research

This page provides a comprehensive comparison between KLA-Tencor Corporation (KLA) and Lam Research Corporation (Lam Research). We delve into their respective business models, analyse their financial performance, and examine their market context to offer a factual overview. This content aims to educate on the nuances of each company's position within the semiconductor equipment industry. Educational content, not financial advice.

This page provides a comprehensive comparison between KLA-Tencor Corporation (KLA) and Lam Research Corporation (Lam Research). We delve into their respective business models, analyse their financial ...

Comparison Snapshot

Key Financial Metrics

KLAC

Metric

LRCX

$202.74B

Market Cap

$279.93B

-18.19%

Potential Profit

-29.13%

Buy

Analyst Rating

Buy

Why It's Moving

KLA Stock Surges on AI Infrastructure Tailwinds Keeping Semiconductor Equipment in the Spotlight.

Stock rocketed from $1,182 on October 24, 2025, to $1,512 by January 23, 2026, reflecting 87.7% gains since early 2025 on AI-driven momentum.
AI infrastructure demand positions KLA and peers at the top for 2026, as highlighted in recent sector research reports.
Upcoming earnings growth of 1.58% to $32.09 per share underscores confidence in the company's role in high-tech chip manufacturing.

Sentiment:

🐃Bullish

Lam Research Surges on AI Tailwinds and Analyst Upgrades Ahead of Earnings.

Zacks upgraded LRCX to Strong Buy, highlighting rising earnings estimates and AI-chip plus DRAM demand poised to drive Q2 beats.
Recent Q1 earnings delivered $1.26 EPS, topping expectations by 3.28%, with $5.32B revenue underscoring sustained semiconductor strength.
Bank of America hiked its price target to $245 with a buy rating, reflecting optimism on margin expansion and capital returns in the AI WFE cycle.

Sentiment:

🐃Bullish

KLA Stock Surges on AI Infrastructure Tailwinds Keeping Semiconductor Equipment in the Spotlight.

Stock rocketed from $1,182 on October 24, 2025, to $1,512 by January 23, 2026, reflecting 87.7% gains since early 2025 on AI-driven momentum.
AI infrastructure demand positions KLA and peers at the top for 2026, as highlighted in recent sector research reports.
Upcoming earnings growth of 1.58% to $32.09 per share underscores confidence in the company's role in high-tech chip manufacturing.

Sentiment:

🐃Bullish

Lam Research Surges on AI Tailwinds and Analyst Upgrades Ahead of Earnings.

Zacks upgraded LRCX to Strong Buy, highlighting rising earnings estimates and AI-chip plus DRAM demand poised to drive Q2 beats.
Recent Q1 earnings delivered $1.26 EPS, topping expectations by 3.28%, with $5.32B revenue underscoring sustained semiconductor strength.
Bank of America hiked its price target to $245 with a buy rating, reflecting optimism on margin expansion and capital returns in the AI WFE cycle.

Sentiment:

🐃Bullish

Investment Analysis

KLA

KLAC

Pros

KLA delivered double-digit year-over-year revenue and EPS growth in fiscal 2026 Q1, exceeding guidance midpoints.
KLA holds strong position in AI infrastructure buildout with leading inspection and metrology solutions for advanced nodes.
Analysts project net profit growth to $4.7 billion in 2026, up 16% from recent trailing twelve months.

Considerations

KLA's smaller R&D budget versus peers like Applied Materials and ASML risks potential market share loss.
Elevated valuation metrics include P/E ratio of 36.19 and P/S ratio of 11.99, above industry comparables.
Exposure to semiconductor cyclicality heightens vulnerability to macro-driven volatility in wafer-fab spending.

Lam Research

LRCX

Pros

Lam Research benefits from robust demand in AI-driven advanced packaging and leading-edge memory fabrication.
Strong balance sheet supports sustained capital returns amid semiconductor equipment sector resilience.
Favourable technical indicators signal upward momentum tied to industry capacity expansion trends.

Considerations

Intense competition from ASML and Applied Materials pressures market share in wafer fabrication equipment.
Cyclical dependence on chip industry spending exposes Lam to downturns in foundry and memory markets.
High operational leverage amplifies earnings volatility during periods of subdued customer capex.

Related Market Insights

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