KLA Trades Above 37x Forward P/E as Shares Rally Over 50% YTD
KLA's forward P/E now tops 37x, eclipsing ASML’s multiple and marking ASML’s smallest premium to peers since 2014. The stock has surged over 50% year-to-date versus ASML’s 36% gain, fueling elevated sector valuations.
1. Valuation Relative to Peers
KLA’s forward price-to-earnings ratio now sits just above 37x, placing it ahead of peers including ASML, Applied Materials and Lam Research for the first time since 2014. This ranking shift underscores KLA’s outsized share performance relative to its major chip-equipment competitors.
2. Year-to-Date Performance
KLA shares have climbed over 50% this year, outpacing ASML’s 36% increase and driven by robust demand forecasts for semiconductor capital equipment tied to accelerating AI data center investments.
3. Outlook and Risks
Elevated P/E multiples raise the bar for KLA to deliver earnings growth that justifies its valuation; any slowdown in chip equipment orders or shifts in AI spending could pressure the stock’s performance.