KLA sees $12.5b backlog lifting visibility into late 2026

KLA's story is tied to the idea that process control remains critical at every step up in AI, 2 nm, EUV and advanced packaging. The body notes the business leans on a large backlog that management expects at about US$12.5b, which helps visibility into late 2026 and 2027 but does not completely insulate it from order swings.

The most relevant recent context the article cites is research comparing KLA with Daktronics. Both sit in a similar earnings-focused ranking, yet Daktronics screens as the cheaper value play, while KLA is framed as about 27% undervalued on a fair value view with tariff and China exposure still hanging over the story. For readers, that frames KLA as an AI infrastructure and process control pure play, already priced at a premium P/E, with analysts still seeing upside and earnings growth forecasts around 19% a year.

The operational question is whether KLA converts its backlog, AI tailwinds and sector ETF strength into durable orders fast enough to offset those external cost and demand pressures. KLA's narrative projects US$21.3b revenue and US$8.8b earnings by 2029, assuming 17.6% yearly revenue growth and an earnings increase of about US$4.1b from US$4.7b today. A more bullish alternative view leaned on advanced packaging as the real swing factor, penciling in revenue reaching about US$26.1b and earnings near US$11.1b by 2029, though such forecasts could shift as today's news is absorbed.