Investopedia: KLAC Looking To Click With The Current Chip Cycle

KLA-Tencor (Nasdaq:KLAC) has a lot of what investors ought to look for when shopping for stocks for their portfolio. The company is a leader in its space (with greater than 50% market share), posts excellent relative margins and continues to simultaneously re-invest in the business without being miserly towards shareholder capital.

All of that said, KLA-Tencor is a semiconductor equipment company and more than a decade of positive cash flow doesn't erase the cyclicality of this sector or this business. While ever-smaller circuits increase the demand for more sophisticated equipment, predicting the peaks and valleys of the cycle is notoriously difficult and investors have started to get a little more cautious.

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