Why I Prefer KLA Corporation Over ASML Right Now

KLA Corporation (KLAC) earns a Buy rating for its superior Quality Growth profile, defensive revenue base, and diversified customer exposure versus ASML. KLAC consistently beats guidance, with Q3 FY2026 revenue up 11% YoY and management raising full-year growth expectations to the high teens. The process control intensity model enables KLAC to compound earnings through node transitions, benefiting from secular trends in chip complexity and advanced packaging. Despite a premium valuation, KLAC’s durable moat, compounding mechanism, and limited AI supercycle exposure offer a more balanced risk-reward than ASML.

The Investment Thesis I recently recommended a Hold on ASML Holding NV (NASDAQ:ASML) on this page, citing three specific risks: High-NA EUV adoption delayed by TSMC until at least 2029, a China DUV revenue cliff not yet fully behind