KLA Corporation, together with its subsidiaries, engages in the design, manufacture, and marketing of process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. The company offers inspection and review tools to identify, locate, characterize, review, and analyze defects on various surfaces of patterned and unpatterned wafers; metrology systems that are used to measure pattern dimensions, film thickness, film stress, layer-to-layer alignment, pattern placement, surface topography, and electro-optical properties for wafers; chemical process control equipment; wired and wireless sensor wafers and reticles; wafer defect inspection, review, and metrology systems; reticle inspection and metrology systems; and semiconductor software solutions that provide run-time process control, defect excursion identification, process corrections, and defect classification to accelerate yield learning rates and reduce production risk. It also provides etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, the company offers direct imaging, inspection, optical shaping, inkjet and additive printing, UV laser drilling, and computer-aided manufacturing and engineering solutions for the PCB market; inspection and electrical testing systems to identify and classify defects, as well as systems to repair defects for the display market; and inspection and metrology systems for quality control and yield improvement in advanced and traditional semiconductor packaging markets. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.

KLA Corporation

Amphenol’s APH fourth-quarter 2025 adjusted earnings of 97 cents per share beat the Zacks Consensus Estimate by 4.3%. The earnings figure jumped 76.4% year over year.
Net sales surged 49.1% year over year to $6.44 billion, beating the consensus mark by 5.64%. Organically, net sales increased 37% year over year. This exceptional top-line performance was driven by strong organic growth in the IT datacom end-market and strong contribution from acquisitions.
Amphenol Corporation Price, Consensus and EPS Surprise
APH shares are down 15% at the time of writing this article following the impressive fourth-quarter 2025 results. Shares of the company have jumped 57.9% in the trailing six-month period, outperforming the Zacks Computer and Technology sector’s 16.8%.
APH’s Q4 Top-Line Details
Harsh Environment Solutions’ (25.7% of net sales) sales were $1.65 billion, up 31% year over year. Communications Solutions’ (53.2% of net sales) sales were $3.42 billion, which jumped 77.5% year over year. Interconnect and Sensor Systems Solutions’ (21.2% of net sales) sales were $1.36 billion, up 20.9% year over year.
Gross margin, on a GAAP basis, expanded 390 basis points (bps) year over year to 38.2%.
Selling, general and administrative expenses, as a percentage of revenues, decreased 120 bps on a year-over-year basis to 10.7%.
Adjusted operating margin expanded 510 bps on a year-over-year basis to 27.5%.
APH’s Balance Sheet & Cash Flow
As of Dec. 31, 2025, Amphenol had cash and cash equivalents worth $11.43 billion, up from $3.89 billion as of Sept. 30, 2025.
Total debt was $15.5 billion as of Dec. 31, 2025, compared with $8.07 billion as of Sept. 30, 2025.
During the fourth quarter, the company purchased 1.3 million shares for $171 million. It also paid dividends of $202 million.
APH generated $1.7 billion in cash from operations in the fourth quarter, up from $1.4 billion in the previous quarter. The company generated a non-GAAP free cash flow of $1.5 billion in the third quarter, up from $1.22 billion in the second quarter.
Amphenol’s Q1 Guidance Positive
Amphenol expects first-quarter 2026 earnings between 91 cents and 93 cents per share, indicating growth between 44% and 48% year over year. Revenues are anticipated between $6.90 billion and $7 billion, suggesting growth in the 43-45% range.
Zacks Rank & Upcoming Earnings to Watch
Currently, Amphenol sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector that are set to report their quarterly results are KLA KLAC, Sandisk SNDK and Teradata TDC. Each of the three stocks sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Both KLA and Sandisk are set to report their respective second-quarter fiscal 2026 results on Jan. 29. Teradata is set to report its fourth-quarter 2025 results on Feb. 10.
In the trailing six-month period, shares of Sandisk, KLA and Teradata have jumped 1021.5%, 76.5% and 33.8%, respectively.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Amphenol's Q4 Earnings Beat Estimates, Revenues Up Y/Y, Shares Fall

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Invesco S&P 500 Equal Weight ETF (Symbol: RSP) where we have detected an approximate $3.1 billion dollar inflow -- that's a 3.8% increase week over week in outstanding units (from 402,820,000 to 418,160,000). Among the largest underlying components of RSP, in trading today SanDisk Corp (Symbol: SNDK) is up about 5.2%, Huntington Ingalls Industries, Inc. (Symbol: HII) is off about 0.3%, and KLA Corp (Symbol: KLAC) is up by about 0.1%. For a complete list of holdings, visit the RSP Holdings page » The chart below shows the one year price performance of RSP, versus its 200 day moving average:
Looking at the chart above, RSP's low point in its 52 week range is $150.35 per share, with $200.78 as the 52 week high point — that compares with a last trade of $198.91. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
Services Stocks Hedge Funds Are Selling
NDAQ Dividend Growth Rate
Top Ten Hedge Funds Holding EGIF
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable ETF Inflow Detected - RSP, SNDK, HII, KLAC

The S&P 500 Index ($SPX) (SPY) on Tuesday closed up +0.41%, the Dow Jones Industrials Index ($DOWI) (DIA) closed down -0.83%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up +0.88%. March E-mini S&P futures (ESH26) rose +0.42%, and March E-mini Nasdaq futures (NQH26) rose +0.89%.
Stock indexes settled mostly higher on Tuesday, with the S&P 500 posting a new all-time high and the Nasdaq 100 posting a 2.75-month high. Strength in chipmakers and AI infrastructure stocks led the broader market higher on Tuesday, after Micron Technology jumped more than 5% after it said it plans to invest $24 billion in Singapore and expand its memory-chip capacity. Also, strong Q4 corporate earnings results are underpinning stocks. Stocks maintained their gains on Tuesday despite an unexpected decline in the Conference Board’s US Jan consumer confidence index to an 11.5-year low.
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The weakness in health insurance stocks weighed on the Dow Jones Industrials on Tuesday after the US government proposed holding payments to private Medicare plans flat next year. Health insurers added to their losses after UnitedHealth Group forecast a decline in 2026 revenue, the first annual contraction in more than 30 years.
Stocks are also being pressured by President Trump’s new threat of 100% tariffs on US imports from Canada, the possibility of a US government shutdown over ICE funding, lingering concerns about Greenland, and business and travel disruptions from the massive storm that just crossed the US. In addition, there is political uncertainty about the Fed, as the FOMC is expected to leave rates unchanged at its meeting this week, potentially drawing new threats from Mr. Trump for refusing to cut rates further.
The risk of another partial government shutdown is negative for stocks. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding after the ICE shooting of an ICU nurse in Minnesota on Saturday. There could be a partial government shutdown when the current stopgap funding measure expires this Friday.
ADP reported that US private payrolls rose an average of 7,750 per week in the four weeks ending January 3, the smallest weekly increase in six weeks.
The US Nov S&P composite-20 home price index rose +1.39% y/y, stronger than expectations of +1.20% y/y.
The Conference Board US Jan consumer confidence index unexpectedly fell -9.7 to an 11.5-year low of 84.5, weaker than expectations of an increase to 91.0.
The US Jan Richmond Fed manufacturing survey rose +1 to -6, slightly weaker than expectations of -5.
The market’s focus this week will be on new tariff news and the prospects for a continued resolution (CR) to fund the government. On Wednesday, the FOMC is expected to keep the fed funds target range unchanged at 3.50%-3.75%. Post-meeting comments on Wednesday from Fed Chair Powell will also be scrutinized for clues to the future of Fed policy. On Thursday, initial weekly unemployment claims are expected to increase by 5,000 to 205,000. Also, Q3 nonfarm productivity is expected to be unrevised at 4.9%. In addition, the Nov trade deficit is expected to widen to -$44.10 billion. Finally, Nov factory offers are expected to increase by +1.6% m/m. On Friday, Dec PPI final demand is expected to ease to +2.8% y/y from +3.0% y/y in Nov, and Dec PPI ex-food and energy is expected to ease to +2.9% y/y from +3.0% y/y in Nov. Also, the Jan MNI Chicago PMI is expected to climb by +0.8 to 43.5.
Q4 earnings season is in full swing, with 102 of the S&P 500 companies scheduled to report earnings this week. Microsoft, Meta Platforms, and Tesla report earnings results after the close on Wednesday, and Apple reports after the close on Thursday. Earnings have been a positive factor for stocks, with 81% of the 83 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 3% chance of a -25 bp rate cut at this week’s FOMC meeting on Tuesday and Wednesday (Jan 27-28).
Overseas stock markets settled higher on Tuesday. The Euro Stoxx 50 rose to a 1-week high and closed up +0.62%. China’s Shanghai Composite closed up +0.18%. Japan’s Nikkei Stock 225 closed up +0.85%.
Interest Rates
March 10-year T-notes (ZNH6) on Tuesday closed down by -1 tick. The 10-year T-note yield rose +1.2 bp to 4.223%. Strength in stocks on Tuesday weighed on T-notes. Also, slack demand for the Treasury’s $70 billion auction of 5-year T-notes undercut T-note prices as the auction had a bid-to-cover ratio of 2.34, below the 10-auction average of 2.36. Losses in T-notes were limited on Tuesday after the US Jan consumer confidence index unexpectedly declined to an 11.5-year low.
European government bond yields move higher on Tuesday. The 10-year German bund yield rose +0.8 bp to 2.875%. The 10-year UK gilt yield climbed to a 3-week high of 4.527% and finished up by +2.8 bp at 4.525%.
Eurozone Dec new car registrations rose +5.8% y/y, the sixth consecutive month of increases.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and AI infrastructure stocks moved higher on Tuesday. Lam Research (LRCX) closed up more than +6% to lead gainers in the Nasdaq 100, and Micron Technology (MU) closed up more than +5% after it said it plans to invest $24 billion in Singapore and expand its memory-chip capacity. Also, Western Digital (WDC), Seagate Technology Holdings Plc (STX), KLA Corp (KLAC), and Applied Materials (AMAT) closed up more than +4%. In addition, Intel (INTC) closed up more than +3%, and ASML Holding NV (ASML) and Broadcom (AVGO) closed up more than +2%.
The Magnificent Seven technology stocks rallied on Tuesday, providing support to the broader market. Amazon.com (AMZN) and Microsoft (MSFT) closed up more than +2%, and Apple (AAPL) and Nvidia (NVDA) closed up more than +1%. Also, Alphabet (GOOGL) closed up +0.39%, and Meta Platforms (META) closed up +0.09%. Bucking the trend, Tesla (TSLA) closed down -0.99%.
Health insurance stocks retreated on Tuesday after the US government proposed holding payments to private Medicare plans flat next year. Humana (HUM) closed down more than -21% to lead losers in the S&P 500, and UnitedHealth Group (UNH) closed down more than -19% to lead losers in the Dow Jones Industrials after it forecast a decline in 2026 revenue, the first annual contraction in more than 30 years. Also, Elevance Health (ELV) and CVS Health (CVS) closed down more than -14%, and Alignment Healthcare (ALHC) closed down more than -12%. In addition, Centene (CNC) closed down by more than -10%, and Molina Healthcare (MOH) closed down more than -8%.
Redwire Corp (RDW) closed up more than +28% after being awarded a contract for the Missile Defense Agency Scalable Homeland Innovative Enterprise Layered Defense contract.
Corning (GLW) closed up more than +15% to lead gainers in the S&P 500 after announcing a multiyear $6 billion agreement with Meta Platforms to supply optical fiber, cable, and connectivity solutions to Meta’s data centers.
CoreWeave (CRWV) closed up more than +9% after Deutsche Bank upgraded the stock to buy from hold with a price target of $140.
General Motors (GM) closed up more than +8% after reporting Q4 adjusted EPS of $2.51, better than the consensus of $2.28 and forecasting full-year adjusted EPS of $11.00 to $13.00, the midpoint above the consensus of $11.79.
HCA Healthcare (HCA) closed up more than +7% after reporting Q4 net income of $1.88 billion, better than the consensus of $1.73 billion.
RTX Corp. (RTX) closed up more than +2% after reporting Q4 adjusted sales of $24.24 billion, well above the consensus of $22.63 billion.
Sanmina (SANM) closed down more than -22% after forecasting Q2 revenue of $3.1 billion to $3.4 billion, weaker than the consensus of $3.51 billion.
Agilysys Inc. (AGYS) closed down more than -20% after reporting Q3 adjusted EPS of 42 cents, weaker than the consensus of 46 cents.
Roper Technologies (ROP) closed down more than -9% to lead losers in the Nasdaq 100 after forecasting 2026 adjusted EPS continuing operations of $21.30 to $21.55, below the consensus of $21.62
Applied Industrial Technologies (AIT) closed down more than -7% after reporting Q2 net sales of $1.16 billion, below the consensus of $1.17 billion.
Brown & Brown (BRO) closed down more than -7% after reporting Q4 revenue of $1.61 billion, weaker than expectations of $1.65 billion.
Earnings Reports(1/28/2026)
Amphenol Corp (APH), ASML Holding NV (ASML), AT&T Inc (T), Automatic Data Processing Inc (ADP), CH Robinson Worldwide Inc (CHRW), Corning Inc (GLW), Danaher Corp (DHR), Elevance Health Inc (ELV), Fair Isaac Corp (FICO), GE Vernova Inc (GEV), General Dynamics Corp (GD), International Business Machine (IBM), Lam Research Corp (LRCX), Las Vegas Sands Corp (LVS), Lennox International Inc (LII), Meta Platforms Inc (META), Microsoft Corp (MSFT), MSCI Inc (MSCI), NVR Inc (NVR), Otis Worldwide Corp (OTIS), Raymond James Financial Inc (RJF), ServiceNow Inc (NOW), Southwest Airlines Co (LUV), Starbucks Corp (SBUX), Tesla Inc (TSLA), Textron Inc (TXT), United Rentals Inc (URI), Waste Management Inc (WM).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

S&P 500 Posts a Record High on Tech Strength and Solid Corporate Earnings

The S&P 500 Index ($SPX) (SPY) today is up +0.47%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.84%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.87%. March E-mini S&P futures (ESH26) are up +0.48%, and March E-mini Nasdaq futures (NQH26) are up +0.90%.
Stock indexes are mostly higher today, with the S&P 500 posting a 2-week high and the Nasdaq 100 posting a 2.75-month high. Strength in chipmakers and AI infrastructure stocks is leading the broader market higher today, with Micron Technology rising 5% after it said it plans to invest $24 billion in Singapore and expand its memory-chip capacity. Also, strong Q4 corporate earnings results are underpinning stocks. Stocks maintained their gains today despite an unexpected decline in the Conference Board’s US Jan consumer confidence index to an 11.5-year low.
Join 200K+ Subscribers: Find out why the midday Barchart Brief newsletter is a must-read for thousands daily.
The weakness in health insurance stocks is weighing on the Dow Jones Industrials after the US government proposed holding payments to private Medicare plans flat next year. Health insurers added to their losses after UnitedHealth Group forecast a decline in 2026 revenue, the first annual contraction in more than 30 years.
Stocks are also being pressured by President Trump’s new threat of 100% tariffs on US imports from Canada, the possibility of a US government shutdown over ICE funding, lingering concerns about Greenland, and business and travel disruptions from the massive storm that just crossed the US. In addition, there is political uncertainty about the Fed, as the FOMC is expected to leave rates unchanged at its meeting this week, potentially drawing new threats from Mr. Trump for refusing to cut rates further.
The risk of another partial government shutdown is also weighing on stocks. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding after the ICE shooting of an ICU nurse in Minnesota on Saturday. There could be a partial government shutdown when the current stopgap funding measure expires this Friday.
ADP reported that US private payrolls rose an average of 7,750 per week in the four weeks ending January 3, the smallest weekly increase in six weeks.
The US Nov S&P composite-20 home price index rose +1.39% y/y, stronger than expectations of +1.20% y/y.
The Conference Board US Jan consumer confidence index unexpectedly fell -9.7 to an 11.5-year low of 84.5, weaker than expectations of an increase to 91.0.
The US Jan Richmond Fed manufacturing survey rose +1 to -6, slightly weaker than expectations of -5.
The market’s focus this week will be on new tariff news and the prospects for a continued resolution (CR) to fund the government. On Wednesday, the FOMC is expected to keep the fed funds target range unchanged at 3.50%-3.75%. Post-meeting comments on Wednesday from Fed Chair Powell will also be scrutinized for clues to the future of Fed policy. On Thursday, initial weekly unemployment claims are expected to increase by 5,000 to 205,000. Also, Q3 nonfarm productivity is expected to be unrevised at 4.9%. In addition, the Nov trade deficit is expected to widen to -$44.10 billion. Finally, Nov factory offers are expected to increase by +1.6% m/m. On Friday, Dec PPI final demand is expected to ease to +2.8% y/y from +3.0% y/y in Nov, and Dec PPI ex-food and energy is expected to ease to +2.9% y/y from +3.0% y/y in Nov. Also, the Jan MNI Chicago PMI is expected to climb by +0.8 to 43.5.
Q4 earnings season is in full swing, with 102 of the S&P 500 companies scheduled to report earnings this week. Earnings have been a positive factor for stocks, with 81% of the 83 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 3% chance of a -25 bp rate cut at this week’s FOMC meeting on Tuesday and Wednesday (Jan 27-28).
Overseas stock markets are higher today. The Euro Stoxx 50 rose to a 1-week high and is up +0.46%. China’s Shanghai Composite closed up +0.18%. Japan’s Nikkei Stock 225 closed up +0.85%.
Interest Rates
March 10-year T-notes (ZNH6) today are down by -1 tick. The 10-year T-note yield is up +0.4 bp to 4.215%. Strength in stocks today is weighing on T-notes. Also, supply pressures are undercutting T-note prices ahead of a $70 billion Treasury auction of 5-year T-notes later today. T-notes recovered almost all of their losses after the US Jan consumer confidence index unexpectedly declined to an 11.5-year low.
European government bond yields are mixed today. The 10-year German bund yield is down -0.2 bp to 2.865%. The 10-year UK gilt yield is up +2.0 bp to 4.517%.
Eurozone Dec new car registrations rose +5.8% y/y, the sixth consecutive month of increases.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers and AI infrastructure stocks are moving higher today. Seagate Technology Holdings Plc (STX) is up more than +6% to lead gainers in the Nasdaq 100, and Lam Research (LRCX) and Western Digital (WDC) are up more than +5%. Also, Micron Technology (MU) is up more than +4% after it said it plans to invest $24 billion in Singapore and expand its memory-chip capacity. In addition, Applied Materials (AMAT) is up more than +4%, and KLA Corp (KLAC), ASML Holding NV (ASML), and Intel (INTC) are up more than +3%. Finally, Nvidia (NVDA), Broadcom (AVGO), Marvel Technology (MRVL), and Microchip Technology (MCHP) are up more than +1%.
Health insurance stocks are sliding today after the US government proposed holding payments to private Medicare plans flat next year. UnitedHealth Group (UNH) is down more than -19% to lead losers in the S&P 500 and Dow Jones Industrials after it forecast a decline in 2026 revenue, the first annual contraction in more than 30 years. Also, Humana (HUM) is down more than -19%, and Alignment Healthcare (ALHC) is down more than -15%. In addition, Elevance Health (ELV), CVS Health (CVS), and Centene (CNC) are down by more than -11%, and Molina Healthcare (MOH) is down more than -5%.
Redwire Corp (RDW) is up more than +26% after being awarded a contract for the Missile Defense Agency Scalable Homeland Innovative Enterprise Layered Defense contract.
Corning (GLW) is up more than +16% to lead gainers in the S&P 500 after announcing a multiyear $6 billion agreement with Meta Platforms to supply optical fiber, cable, and connectivity solutions to Meta’s data centers.
HCA Healthcare (HCA) is up more than +11% after reporting Q4 net income of $1.88 billion, better than the consensus of $1.73 billion.
General Motors (GM) is up more than +9% after reporting Q4 adjusted EPS of $2.51, better than the consensus of $2.28 and forecasting full-year adjusted EPS of $11.00 to $13.00, the midpoint above the consensus of $11.79.
CoreWeave (CRWV) is up more than +8% after Deutsche Bank upgraded the stock to buy from hold with a price target of $140.
United Parcel Service (UPS) is up more than +2% after reporting Q4 revenue of $24.50 billion, better than the consensus of $23.99 billion.
RTX Corp. (RTX) is up more than +1% after reporting Q4 adjusted sales of $24.24 billion, well above the consensus of $22.63 billion.
Agilysys Inc. (AGYS) is down more than -20% after reporting Q3 adjusted EPS of 42 cents, weaker than the consensus of 46 cents.
Sanmina (SANM) is down more than -17% after forecasting Q2 revenue of $3.1 billion to $3.4 billion, weaker than the consensus of $3.51 billion.
Roper Technologies (ROP) is down more than -14% to lead losers in the Nasdaq 100 after forecasting 2026 adjusted EPS continuing operations of $21.30 to $21.55, below the consensus of $21.62
Applied Industrial Technologies (AIT) is down more than -8% after reporting Q2 net sales of $1.16 billion, below the consensus of $1.17 billion.
Brown & Brown (BRO) is down more than -7% after reporting Q4 revenue of $1.61 billion, weaker than expectations of $1.65 billion.
Earnings Reports(1/27/2026)
NextEra Energy Inc (NEE), United Parcel Service Inc (UPS), Boeing Co/The (BA), PACCAR Inc (PCAR), UnitedHealth Group Inc (UNH), RTX Corp (RTX), Roper Technologies Inc (ROP), Synchrony Financial (SYF), Sysco Corp (SYY), Northrop Grumman Corp (NOC), HCA Healthcare Inc (HCA), Kimberly-Clark Corp (KMB), General Motors Co (GM), Invesco Ltd (IVZ), Union Pacific Corp (UNP), Seagate Technology Holdings PL (STX), F5 Inc (FFIV), Packaging Corp of America (PKG), PPG Industries Inc (PPG), Texas Instruments Inc (TXN), BXP Inc (BXP).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Broader Market Rallies on Tech Strength and Solid Earnings

KLA KLAC is set to report its second-quarter fiscal 2026 results on Jan. 29.
For the to-be-reported quarter, KLAC expects revenues of $3.225 billion, plus/minus $150 million. The Zacks Consensus Estimate for revenues is pegged at $3.26 billion, indicating an increase of 6.1% from the year-ago quarter’s reported figure.
KLA expects non-GAAP earnings of $8.70 per share, plus/minus 78 cents. The consensus mark for earnings is pegged at $8.82 per share, up 3 cents over the past 30 days, indicating year-over-year growth of 7.6%.
Consensus Estimate Trend
Image Source: Zacks Investment Research
KLAC’s earnings have surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 5.86%.
KLA Corporation Price and EPS Surprise
Let us see how things have shaped up for the upcoming announcement.
Key Factors to Note Ahead of KLAC’s Q2 Results
KLA is benefiting from its dominant process control market share, strong AI infrastructure investment and momentum in advanced packaging. AI continues to serve as a key catalyst for KLA as compute efficiency advancements fuel demand for advanced semiconductors and sophisticated process control solutions.
KLA’s fiscal second-quarter results are expected to have benefited from the growing importance of process control, as it reduces time to debug process integration challenges in the fab ramp phase and optimizes yield across a high-volume manufacturing environment. An increasing complexity of advanced packaging is creating strong demand for KLA’s process control solutions.
The advanced packaging business has robust growth prospects driven by increasing complexity in chip integration and expanding AI infrastructure requirements. Strong spending in development of leading-edge logic nodes and high-bandwidth memory in DRAM is expected to have driven KLAC’s top-line growth in the to-be-reported quarter.
However, gross margin in the to-be-reported quarter is expected to have suffered from an unfavorable product mix as well as a negative impact of tariffs.
KLAC Shares Outperform Sector & Peers
KLA shares have jumped 119.5% in the trailing 12 months, outperforming the Zacks Computer and Technology sector’s return of 25.9% and the Zacks Electronics-Miscellaneous Products industry’s appreciation of 40.4%. The company has outperformed peers, including Applied Materials AMAT, Teradyne TER and Axcelis Technologies ACLS, in the past year. Shares of Applied Materials, Teradyne and Axcelis have returned 84.8%, 90% and 30.7%, respectively, over the same timeframe.
KLAC Stock’s Performance
Image Source: Zacks Investment Research
The KLAC stock is not so cheap, as suggested by the Value Score of F. In terms of the forward 12-month price-to-earnings (P/E), KLAC is trading at 38.36X, higher than the broader sector and peers. The broader sector is trading at 27.21X while Applied Materials and Axcelis trade at 31.95X and 20.22X, respectively. However, Teradyne is pricey with a P/E multiple of 44.69.
KLAC Stock is Trading at a Premium
Image Source: Zacks Investment Research
KLA's Prospects Ride on Strong Advanced Packaging Growth
KLA is benefiting from strong demand for leading-edge logic, high-bandwidth memory (HBM) and advanced packaging, which is driving top-line growth. Growth of advanced packaging supporting heterogeneous chip integration has become a new market for KLA, which is currently worth $11 billion and growing faster than core WFE.
Moreover, the growing investment in custom silicon, particularly among hyperscalers developing their own custom chips, has led to a proliferation of unique device designs. This has put customers under pressure to deliver performance, volume and time to market, resulting in strong demand for advanced process control. This aids KLA’s prospects as each new chip design requires rigorous inspection, metrology and yield optimization solutions.
KLA generates solid cash flow, which allows management the opportunity to invest in product innovations, acquisitions and business development. The company ended the first quarter of fiscal 2026 with $4.7 billion in total cash, cash equivalents and marketable securities and $5.9 billion in debt. The company has a flexible and attractive bond maturity profile.
KLAC expects to meaningfully outperform the mid-to high single-digit WFE growth rate estimated in 2025, driven by rising process control intensity, inclusive of the significant growth of the advanced packaging market. For 2026, HBM is expected to grow faster than overall logic/foundry growth. Over the long term, KLAC targets to deliver 40% to 50% incremental non-GAAP operating margin leverage on strong revenue growth.
Conclusion
KLAC is benefiting from strong demand for leading-edge logic, HBM and advanced packaging, which is driving market share growth in the semiconductor industry. Accelerating investment in AI infrastructure bodes well for KLA’s prospects. The company’s robust portfolio and its leadership in process control systems are enabling customers to manage increasing design complexity. These factors justify a premium valuation.
KLA currently sports a Zacks Rank #1 (Strong Buy) and a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank stocks here.
Just Released: Zacks Top 10 Stocks for 2026
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KLA's Q2 Earnings Loom: Should the KLAC Stock Be in Your Portfolio?

The S&P 500 Index ($SPX) (SPY) today is up +0.22%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.64%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.44%. March E-mini S&P futures (ESH26) are up +0.22%, and March E-mini Nasdaq futures (NQH26) are up +0.49%.
Stock indexes are mostly higher today, with the S&P 500 posting a 1.5-week high and the Nasdaq 100 posting a 2.75-month high. Strength in chipmakers is leading the broader market higher today, with Micron Technology rising 4% after it said it plans to invest $24 billion in Singapore and expand its memory-chip capacity.
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The weakness in health insurance stocks is weighing on the Dow Jones Industrials after the US government proposed holding payments to private Medicare plans flat next year. Health insurers added to their losses after UnitedHealth Group forecast a decline in 2026 revenue, the first annual contraction in more than 30 years. Higher bond yields are also bearish for stocks as the 10-year T-note yield is up +2 bp to 4.23%.
Stocks are also being pressured by President Trump’s new threat of 100% tariffs on US imports from Canada, the possibility of a US government shutdown over ICE funding, lingering concerns about Greenland, and business and travel disruptions from the massive storm that just crossed the US. In addition, there is political uncertainty about the Fed, as the FOMC is expected to leave rates unchanged at its meeting this week, potentially drawing new threats from Mr. Trump for refusing to cut rates further.
The risk of another partial government shutdown is also weighing on stocks. Senate Democrats threatened to block a government funding deal over Department of Homeland Security/ICE funding after the ICE shooting of an ICU nurse in Minnesota on Saturday. There could be a partial government shutdown when the current stopgap funding measure expires this Friday.
ADP reported that US private payrolls rose an average of 7,750 per week in the four weeks ending January 3, the smallest weekly increase in six weeks.
The US Nov S&P composite-20 home price index rose +1.39% y/y, stronger than expectations of +1.20% y/y.
The market’s focus this week will be on any new tariff news and the chances of a continued resolution (CR) to fund the government. Later today, the Conference Board's Jan consumer confidence index is expected to rise by 1.9 points to 91.0. On Wednesday, the FOMC is expected to keep the fed funds target range unchanged at 3.50%-3.75%. Post-meeting comments on Wednesday from Fed Chair Powell will also be scrutinized for clues to the future of Fed policy. On Thursday, initial weekly unemployment claims are expected to increase by 5,000 to 205,000. Also, Q3 nonfarm productivity is expected to be unrevised at 4.9%. In addition, the Nov trade deficit is expected to widen to -$44.10 billion. Finally, Nov factory offers are expected to increase by +1.6% m/m. On Friday, Dec PPI final demand is expected to ease to +2.8% y/y from +3.0% y/y in Nov and Dec PPI ex-food and energy is expected to ease to +2.9% y/y from +3.0% y/y in Nov. Also, the Jan MNI Chicago PMI is expected to climb by +0.8 to 43.5.
Q4 earnings season is in full swing, with 102 of the S&P 500 companies scheduled to report earnings this week. Earnings have been a positive factor for stocks, with 78% of the 64 S&P 500 companies that have reported beating expectations. According to Bloomberg Intelligence, S&P earnings growth is expected to climb by +8.4% in Q4. Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6%.
The markets are discounting a 3% chance of a -25 bp rate cut at this week’s FOMC meeting on Tuesday and Wednesday (Jan 27-28).
Overseas stock markets are higher today. The Euro Stoxx 50 rose to a 1-week high and is up +0.42%. China’s Shanghai Composite closed up +0.18%. Japan’s Nikkei Stock 225 closed up +0.85%.
Interest Rates
March 10-year T-notes (ZNH6) today are down by -3 ticks. The 10-year T-note yield is up +1.6 bp to 4.227%. Strength in stocks today is weighing on T-notes. Also, supply pressures are undercutting T-note prices ahead of a $70 billion Treasury auction of 5-year T-notes later today.
European government bond yields are moving higher today. The 10-year German bund yield is up +1.4 bp to 2.881%. The 10-year UK gilt yield is up +1.5 bp to 4.512%.
Eurozone Dec new car registrations rose +5.8% y/y, the sixth consecutive month of increases.
Swaps are discounting a 0% chance of a +25 bp rate hike by the ECB at its next policy meeting on February 5.
US Stock Movers
Chip makers are moving higher today, led by a +4% gain in Micron Technology (MU) after it said it plans to invest $24 billion in Singapore and expand its memory-chip capacity. Also, Lam Research (LRCX) is up more than +4%, and Applied Materials (AMAT) is up more than +3%. In addition, KLA Corp (KLAC) and Intel (INTC) are up more than +2%, and Microchip Technology (MCHP) is up more than +1%.
Health insurance stocks are sliding today after the US government proposed holding payments to private Medicare plans flat next year. Humana (HUM) is down more than -20% to lead losers in the S&P 500. Also, UnitedHealth Group (UNH) is down more than -19% to lead losers in the Dow Jones Industrials after it forecast a decline in 2026 revenue, the first annual contraction in more than 30 years. In addition, Alignment Healthcare (ALHC) is down more than -13%, and Elevance Health (ELV) and CVS Health (CVS) are down more than -10%. Finally, Centene (CNC) is down more than -7%, and Molina Healthcare (MOH) is down more than -5%.
Redwire Corp (RDW) is up more than +16% after being awarded a contract for the Missile Defense Agency Scalable Homeland Innovative Enterprise Layered Defense contract.
Corning (GLW) is up more than +9% to lead gainers in the S&P 500 after announcing a multiyear $6 billion agreement with Meta Platforms to supply optical fiber, cable, and connectivity solutions to Meta’s data centers.
HCA Healthcare (HCA) is up more than +7% after reporting Q4 net income of $1.88 billion, better than the consensus of $1.73 billion.
General Motors (GM) is up more than +5% after reporting Q4 adjusted EPS of $2.51, better than the consensus of $2.28 and forecasting full-year adjusted EPS of $11.00 to $13.00, the midpoint above the consensus of $11.79.
CoreWeave (CRWV) is up more than +4% after Deutsche Bank upgraded the stock to buy from hold with a price target of $140.
RTX Corp. (RTX) is up more than +1% after reporting Q4 adjusted sales of $24.24 billion, well above the consensus of $22.63 billion.
United Parcel Service (UPS) is up more than +1% after reporting Q4 revenue of $24.50 billion, better than the consensus of $23.99 billion.
Sanmina (SANM) is down more than -19% after forecasting Q2 revenue of $3.1 billion to $3.4 billion, weaker than the consensus of $3.51 billion.
Agilysys Inc. (AGYS) is down more than -16% after reporting Q3 adjusted EPS of 42 cents, weaker than the consensus of 46 cents.
Roper Technologies (ROP) is down more than -11% to lead losers in the Nasdaq 100 after forecasting 2026 adjusted EPS continuing operations of $21.30 to $21.55, below the consensus of $21.62
Applied Industrial Technologies (AIT) is down more than -6% after reporting Q2 net sales of $1.16 billion, below the consensus of $1.17 billion.
Earnings Reports(1/27/2026)
NextEra Energy Inc (NEE), United Parcel Service Inc (UPS), Boeing Co/The (BA), PACCAR Inc (PCAR), UnitedHealth Group Inc (UNH), RTX Corp (RTX), Roper Technologies Inc (ROP), Synchrony Financial (SYF), Sysco Corp (SYY), Northrop Grumman Corp (NOC), HCA Healthcare Inc (HCA), Kimberly-Clark Corp (KMB), General Motors Co (GM), Invesco Ltd (IVZ), Union Pacific Corp (UNP), Seagate Technology Holdings PL (STX), F5 Inc (FFIV), Packaging Corp of America (PKG), PPG Industries Inc (PPG), Texas Instruments Inc (TXN), BXP Inc (BXP).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Edge Higher as Chip Makers Rally

KLA Corporation KLAC is benefiting from the growing demand for AI infrastructure through its leadership in process control and its ability to address growth markets in wafer fab equipment (WFE), including high-bandwidth memory (HBM) and advanced packaging.
The company has seen significant growth in its advanced packaging portfolio, which is essential for heterogeneous device integration in AI applications. KLAC’s advanced packaging systems revenue is expected to exceed $925 million in calendar year 2025, marking a 70% year-over-year increase.
Strong investments in WFE and advanced packaging represent a strong growth opportunity for the company. Growth of advanced packaging supporting heterogeneous chip integration has become a new market for KLAC, currently worth $11 billion and growing faster than the core WFE.
KLA anticipates continued momentum in AI infrastructure investments, which will drive growth in wafer fab equipment and advanced packaging markets. The company expects mid- to high single-digit growth in WFE for calendar year 2025, supported by increasing investments in leading-edge foundry/logic and memory to meet AI and premium mobile demand. Advanced packaging is projected to grow more than 20% compared to last year, further solidifying KLA’s position in this expanding market.
KLA benefits from strong demand for leading-edge logic, HBM, and advanced packaging. These factors are expected to help the stock continue its momentum in 2026. For fiscal second-quarter 2026, revenues are expected to be $3.225 billion, plus/minus $150 million.
KLAC Faces Stiff Competition
KLAC is facing stiff competition from the likes of Teradyne TER and Applied Materials AMAT, both of which are expanding their footprints in the AI Infrastructure market.
Teradyne is benefiting from strong AI-related demand that is driving significant investments in cloud AI build-out as customers accelerate the production of a wide range of AI accelerators, networking, memory, and power devices. The company anticipates AI-related demand to remain the primary engine of growth in the fourth quarter of 2025 and beyond. For the fourth quarter of 2025, Teradyne expects revenues between $920 million and $1 billion.
Applied Materials is at the forefront of artificial intelligence (AI)-driven semiconductor innovations. The company is leading major device architecture inflections, including gate-all-around transistors, backside power delivery, HBM, advanced packaging, and silicon photonics. These emerging technologies are expected to increase the market for WFE and drive long-term revenue growth for Applied Materials.
KLAC Share Price Performance, Valuation, and Estimates
KLA stock has surged 67.1% in the trailing six-month period, outperforming the Zacks Computer & Technology sector’s rise of 14.4% and the Zacks Electronics - Miscellaneous Products increase of 28.3%.
KLAC Stock's Performance
Image Source: Zacks Investment Research
KLAC stock is trading at a premium with a forward 12-month Price/Sales of 14.38X compared with the Electronics - Miscellaneous Products industry’s 6.98X. KLAC has a Value Score of F.
KLAC's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $35.69 per share, which has increased 0.39% over the past 30 days. This suggests 7.24% year-over-year growth.
KLA Corporation Price and Consensus
KLAC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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KLA Benefits From Growing AI Infrastructure Demand: What's Ahead?

Teradyne (TER) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on February 2, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on theearnings callwill mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus Estimate
This maker of wireless products, data storage and equipment to test semiconductors is expected to post quarterly earnings of $1.36 per share in its upcoming report, which represents a year-over-year change of +43.2%.
Revenues are expected to be $968.79 million, up 28.7% from the year-ago quarter.
Estimate Revisions Trend
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings Whisper
Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Teradyne?
For Teradyne, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.57%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that Teradyne will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?
While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Teradyne would post earnings of $0.78 per share when it actually produced earnings of $0.85, delivering a surprise of +8.97%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom Line
An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Teradyne doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry Player
Another stock from the Zacks Electronics - Miscellaneous Products industry, KLA (KLAC), is soon expected to post earnings of $8.82 per share for the quarter ended December 2025. This estimate indicates a year-over-year change of +7.6%. Revenues for the quarter are expected to be $3.26 billion, up 6.1% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for KLA has been revised 0.3% up to the current level. Nevertheless, the company now has an Earnings ESP of -0.46%, reflecting a lower Most Accurate Estimate.
When combined with a Zacks Rank of #1 (Strong Buy), this Earnings ESP makes it difficult to conclusively predict that KLA will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Should You Invest in Teradyne, Inc. (TER)?
Before you invest in Teradyne, Inc. (TER), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.
Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Teradyne (TER) Earnings Expected to Grow: What to Know Ahead of Next Week's Release

ASML Holding N.V. ASML is slated to report fourth-quarter 2025 results on Jan. 28, before market open.
ASML expects revenues between €9.2 billion and €9.8 billion. The Zacks Consensus Estimate is pegged at $11.06 billion, representing a 11.9% increase from the year-ago quarter’s level.
The Zacks Consensus Estimate for earnings is pegged at $9.01 per share, up 23.4% from the year-ago quarter’s earnings of $7.30. The estimate has been revised upward by 5 cents over the past seven days.
Image Source: Zacks Investment Research
In the last reported quarter, ASML Holding’s earnings of $6.41 per share beat the consensus mark by 2.2%. The company’s earnings outpaced the Zacks Consensus Estimate thrice in the trailing four quarters while missing on one occasion, the average negative surprise being 4.1%.
ASML Holding N.V. Price and EPS Surprise
Earnings Whispers for ASML Stock
Our proven model predicts an earnings beat for ASML Holding this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP, which represents the difference between the Most Accurate Estimate ($9.19 per share) and the Zacks Consensus Estimate ($9.01 per share), is +2.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: ASML carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Influence ASML’s Q4 Results
The semiconductor sector is riding on a wave of resurgence, fueled by surging demand and the transformative potential of artificial intelligence (AI). This positive momentum has been a boon for companies like ASML, particularly in the wafer fabrication equipment space.
ASML Holding has been at the forefront of technological innovation, benefiting significantly from the industry’s shift toward smaller, more advanced technology nodes. These nodes are essential for building cutting-edge digital infrastructures that support AI, 5G and high-performance computing. The increasing complexity of chip designs has made ASML's state-of-the-art lithography tools indispensable to chipmakers.
In both logic and memory markets, the demand for ASML’s lithography tools continues to climb. The ongoing transition to next-generation memory technologies, such as DDR5 and high-bandwidth memory, is a tailwind for the company. With DRAM manufacturers ramping up technology upgrades, ASML Holding is likely to have witnessed strong momentum in the fourth quarter, driven by heightened memory demand.
ASML’s heavy investments in Extreme Ultraviolet (“EUV”) technology are also paying off. EUV lithography is critical for producing advanced chips, and the company’s service segment is benefiting from the rising demand for EUV-related services. In particular, the growing popularity of the NXE:3800 low numerical aperture (NA) machine, which can process 220 wafers per hour, is likely to have driven substantial EUV sales in the to-be-reported quarter.
ASML’s Price Performance, Valuation and Estimates
Shares of ASML have gained 90.3% in the past six months compared with the Computer and Technology sector’s growth of 14.4%. The company has outperformed its peers, Applied Materials AMAT and KLA Corporation KLAC, while underperforming Lam Research LRCX in the same time frame.
ASML 6-Month Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, ASML trades at a forward price-to-sales ratio of 13.12X, higher than the sector’s average of 7.32X.
ASML Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
Investment Thesis for ASML Stock
AI-driven semiconductor demand is on the rise as global enterprises move toward an AI-future. For ASML, the AI-trend has become the primary growth driver as customers demand semiconductor manufacturing equipment for logic and memory chips for AI workloads, high bandwidth memory and DDR5, keeping system demand structurally strong.
Since ASML holds a near-monopoly in EUV technology, crucial for the world’s most advanced chips at 3nm and below, it benefits from extraordinary pricing power and strategic importance. Major customers like TSMC, Samsung and Intel rely on ASML’s systems to stay ahead in chip innovation.
ASML’s venture into sub-2nm production with High Numerical Aperture (High-NA) EUV systems is the next technological leap for chipmakers. This technology will provide ASML with long-term potential as the industry moves toward denser and more efficient chips. ASML’s High-NA machines will be central to that shift.
ASML is effectively the sole player in lithography system upgrades for its own installed base, especially in EUV space. However, in the broader semiconductor equipment market, ASML competes with companies like Lam Research, KLA Corporation and Applied Materials. Lam Research is an established wafer fabrication equipment manufacturer that is established in the memory space.
Applied Materials supplies equipment used in chip fabrication, including deposition and etching tools that are essential for both advanced and mature nodes. KLAC’s advanced packaging solutions are also experiencing robust traction on the back of AI and high performance computing. However, in the lithography space, especially in EUV space, ASML is the undisputed leader.
Final Thoughts: Buy ASML Stock for Now
ASML Holding’s dominance in EUV and High-NA EUV technology, along with solid revenue visibility, makes it well-positioned for future growth. With rising demand for advanced nodes, AI chips and high-bandwidth memory, ASML’s lithography tools will remain mission-critical. Considering these factors, we suggest that investors should buy ASML stock.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ASML Holding Before Q4 Earnings: How Should Investors Play the Stock?

Key Points
Capital expenditures by chipmakers are set to soar.
TSMC just announced much higher than expected capex plans.
If the AI buildout continues, these stocks will benefit in a big way.
So far, 2026 is proving to be a challenging year for investors hoping the three-year bull market rally can continue. The S&P 500 index is essentially flat for the year and many sectors are in the red year to date.
But there's one index group in which every stock is up by double-digits and four of the group's five stocks are up more than 25% since Jan. 1. I'm talking about the S&P 500 Semiconductor Equipment & Materials index group. These are companies that supply complex fabrication and test equipment to semiconductor and related industries around the world. Here are the five companies in the group and their performance year to date (since Jan. 1).
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Applied Materials (NASDAQ: AMAT), up 26.6% in 2026.
Lam Research (NASDAQ: LRCX), up 33.4%
Teradyne (NASDAQ: TER), up 19.8%
Qnity Electronics (NYSE: Q), up 25.8%
So, what's going on with these stocks? Well, unlike highflying chipmaker stocks like Nvidia and Advanced Micro Devices, these companies don't make artificial intelligence (AI) chips. Instead, they manufacture the systems used to produce most new chips and advanced displays globally. That makes them the ultimate AI pick-and-shovel play.
For example, most of the world's largest semiconductor manufacturers are Applied Materials customers. That includes Nvidia, Intel, Samsung Electronics, Taiwan Semiconductor Manufacturing, Broadcom, ASML Holding, Micron Technology , and Texas Instruments. And there are many, many more.
Semiconductor sales are forecast to soar in coming years
And semiconductor sales are poised for record-breaking growth. The semiconductor industry was valued at between $630 billion and $680 billion in 2024 and analysts expect that to rise to as much as $1.1 trillion by 2030. Most of that growth will be driven by the massive growth of AI and data centers.
A recent report by McKinsey, however, says those estimates might be significantly underestimating the industry's true worth. McKinsey predicts the value by 2030 will be between $1.5 trillion and $1.8 trillion.
Chipmakers are increasing capex estimates
And chipmakers are ramping up their capital expenditures on equipment. This month, Taiwan Semiconductor announced plans to spend between $52 billion and $56 billion on equipment and other capex in 2026, up from the $41 billion it spent in 2025. The company also raised capex expectations for the next three years.
The new estimates blew analyst expectations out of the water. And they indicate that companies like TSMC will need more machines to manufacture advanced semiconductors. TSMC is the second-largest semiconductor stock on the planet by market cap, exceeded only by Nvidia. In addition, in exchange for lower tariffs on goods it exports, Taiwan has announced it will invest at least $250 billion in semiconductor and technology manufacturing in the U.S.
The Jan. 15 capex announcement by TSMC gave four of the five S&P 500 semiconductor equipment stocks a big boost last week. Applied Materials' share price rose 8%, Lam Research climbed 7%, KLA rose 6%, and Teradyne climbed 3%. That announcement is hardly an outlier. In fact, it looks a lot more like an industry trend. Nvidia's capital expenditures are expected to rise from $3.2 billion last year to about $6.2 billion this year and $7.6 billion in 2027.
If chipmakers are planning to ramp up spending on equipment and machinery that aggressively, it bodes very well for the equipment and materials makers who supply it. That means that if you believe the AI buildout will continue -- as I do -- then Applied Materials and other semiconductor fabrication and testing equipment stocks are set to soar in the near term. Each is worth an investment right now.
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Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Applied Materials, Intel, Lam Research, Micron Technology, Nvidia, Taiwan Semiconductor Manufacturing, and Texas Instruments. The Motley Fool recommends Broadcom and Teradyne. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.