Should I Buy KLA Corporation (KLAC)? — Finance YouTuber Analysis

The YouTuber holds KLA, an essential company in the chip industry, with 236% gains. They highlight its critical role in ensuring chip production quality through inspection systems and its strong performance as a top S&P 500 performer over the last five years.

“Gefolgt von KLA, ein unverzichtbares Unternehmen der Chiindustrie, das mit sein Inspektionssystem sicherstellt, dass Fehler der Chipproduktion frühzeitig erkannt werden. Diese Aktie zählt auch zu den Topperformern im S&P 500 Fund der letzten 5 Jahre und hier bin ich aktuell 236% im Plus.” — ▶ Watch clip

The YouTuber advises against KLA Corporation, noting its stock has gone 'vertical' and now trades at a 55 P/E and 41 forward P/E. While acknowledging solid 16% annual revenue growth, he believes the share price has become detached from fundamentals, with the price multiple getting too high relative to the business's growth rate.

“But even still, you can see that the revenue is growing, but it's not really seeing that much of an acceleration, whereas the share price has just been going vertical. And I think that this is another example of maybe the share price getting a little bit detached from the underlying fundamentals.” — ▶ 25:30