KLAC vs LRCX: How KLA Corporation and Lam Research Compare (2026)

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. KLAC and LRCX share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined KLAC and LRCX exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

KLA Corporation designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and broader electronics industries worldwide. Its largest segment, Semiconductor Process Control, provides wafer and reticle inspection, metrology, and data analytics systems that chipmakers use to detect defects and measure critical dimensions during fabrication. A Specialty Semiconductor Process segment sells advanced vacuum deposition and etching tools, while a PCB and Component Inspection segment serves electronics manufacturers inspecting printed circuit boards and flat panel displays. KLA earns revenue through equipment sales and a growing base of high-margin service contracts that account for roughly a quarter of total revenue, providing resilience across equipment spending cycles.

Full KLAC guide

Lam Research is one of the largest semiconductor equipment makers in the world, specializing in wafer-fabrication tools used to build integrated circuits. It is a leader in two critical process steps: etch (precisely removing material to carve nanoscale features) and deposition (laying down ultra-thin films of material), along with related cleaning and surface-preparation systems. These steps are repeated hundreds of times to build modern 3D chip structures, and Lam's tools are essential to manufacturing advanced logic and especially memory chips (DRAM and NAND flash). Lam sells its systems to the world's leading chipmakers and foundries, then earns a large, recurring stream of revenue from spare parts, upgrades, and services for its big installed base of tools, which smooths the cyclical equipment-sales business. Demand is driven by capital spending from semiconductor manufacturers, which rises and falls with chip-industry cycles but trends structurally higher as AI, data centers, and advanced devices require more and more sophisticated chips. Headquartered in Fremont, California, Lam is a key enabler of leading-edge and memory chip production.

Full LRCX guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• KLAC drivers: AI Infrastructure Drives Record Wafer Fab Equipment Spending; Near-Monopoly Market Position with Deep Switching Costs.
• LRCX drivers: AI-driven chip-capex supercycle; Leadership in etch and deposition.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: The most acute near-term risk is U.S.-China export controls: restrictions already introduced have disrupted KLA's backlog, forced the return of customer deposits, and may further limit sales to Chinese fabs, which represent a meaningful share of global semiconductor investment. For LRCX, semiconductor equipment is highly cyclical, and Lam's new-tool sales swing sharply with chipmaker capital-spending cycles, especially in memory, which is among the most volatile end markets.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick KLAC if you believe its drivers more; LRCX if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the KLAC and LRCX guides.

KLAC. KLA's fiscal 2025 revenue grew approximately 24% year over year, reflecting the AI-driven acceleration in semiconductor capital equipment spending, and net income grew even faster at roughly 47% as operating leverage amplified revenue gains into margin expansion. The trailing P/E of approximately 73x is well above KLA's own five-year average of roughly 26x, indicating that the market is pricing in continued strong growth from AI infrastructure investment. Investors weighing the valuation should note that the company generates substantial free cash flow and has raised its dividend for seventeen consecutive years, but the premium multiple leaves limited margin of safety if growth decelerates or export restrictions intensify.

LRCX. Lam trades at a multiple reflecting both strong secular demand for chip equipment and the cyclicality of the memory-heavy equipment market. The valuation embeds expectations of a structural rise in semiconductor capital spending driven by AI, balanced against export-control risk and the swing factor of memory capex. The large, higher-margin installed-base service revenue supports a premium over a purely cyclical equipment maker. Lam also returns substantial cash through buybacks and a growing dividend.

Headline figures (approximate, 2026-06-19): KLAC shows revenue (fy2025, ended june 30, 2025) ~$12.16 billion, revenue (ttm through sept 30, 2025) ~$12.52 billion, net income (fy2025) ~$4.06 billion, gross margin (ttm) ~61%; LRCX shows revenue (ttm) ~$16 billion, operating margin ~30%, net income (ttm) ~$4-5 billion, p/e (ttm) ~25x.

KLAC and LRCX are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined KLAC and LRCX exposure against your real portfolio. It is not an investment adviser.