PhonlamaiPhoto/iStock via Getty Images I just wrote an article on ASML ( ASML ). My rating for the stock was a hold. Even though I like the secular semiconductor trend a lot and like ASML's moats even more, I simply believe that at the current price the stock will not be able to deliver good total returns. Check the full article here . So, I went looking for another company with a similar profile ...
PhonlamaiPhoto/iStock via Getty Images I just wrote an article on ASML ( ASML ). My rating for the stock was a hold. Even though I like the secular semiconductor trend a lot and like ASML's moats even more, I simply believe that at the current price the stock will not be able to deliver good total returns. Check the full article here . So, I went looking for another company with a similar profile - KLA Corp. ( KLAC ). It is not a direct competitor to ASML, but it also benefits greatly from the growth of the semiconductor industry and is also a company that operates in the background of the industry, ensuring that production is done properly. But just like ASML, even though I believe in a bright future, the market not only agrees with me but is already pricing that in (and maybe a little more), making the margin of safety very low in this case. What Is KLA Corporation Understanding what KLA does, at first, seems difficult; it seems like rocket science. And really, you could say it is almost rocket science; these are things of very high complexity. That is exactly why each machine costs millions of dollars, and it is not an easy company to replicate. But understanding what it does is not as difficult as it seems. ASML makes the machines that manufacture (or print) chips. KLA makes the machines that monitor this process. More specifically, KLA operates in metrology (measuring chips to ensure they come out according to the design) and also in inspection to see whether there are any errors in wafer production. The image below shows this well: KLA's machine scans the wafer, processes the data and shows the results, showing that, for example, there was a small error that is practically invisible in the chip printing. Kla Presentation And with that, when a company like TSMC ( TSM ), Micron ( MU ), Samsung ( SSNLF ), or others announce that in the coming years they will spend tens of billions in CapEx, part of that needs to be allocated to KLA machines. And of course, bear i...
Blackstone said Tuesday it had raised $13.1 billion for its latest Asia private equity fund, marking its largest PE fundraise in the region. The alternative asset manager said that Blackstone Capital Partners Asia III exceeded its $10 billion target, with the fund raising more than double the amount of its predecessor vehicle. "Asia Pacific is the fastest-growing region in the world, presenting co...
Blackstone said Tuesday it had raised $13.1 billion for its latest Asia private equity fund, marking its largest PE fundraise in the region. The alternative asset manager said that Blackstone Capital Partners Asia III exceeded its $10 billion target, with the fund raising more than double the amount of its predecessor vehicle. "Asia Pacific is the fastest-growing region in the world, presenting compelling opportunities to invest at scale behind our high-conviction themes," Joe Baratta, global head of Blackstone Private Equity Strategies, said in a statement. Blackstone said it has invested more than $7 billion across 12 deals in Asia over the past 24 months, reinforcing its presence in key markets including India and Japan. Recent investments include Indian AI cloud platform Neysa, Japanese engineering services provider TechnoPro and South Korean hair salon franchise JUNO. The firm has also had 15 exits in the region as public markets recover, including the listings of International Gemological Institute and Aadhar Housing Finance in India, as well as the exit of Japan's Alinamin Pharmaceutical. The fundraising comes amid a boost in Asia-focused private capital activity, and follows EQT's recent $15.6 billion Asia buyout fund raise . Amit Dixit, Blackstone's head of Asia private equity, said the firm's "control-oriented strategy" and regional scale has helped differentiate its investment approach. The private equity industry has been grappling with tougher fundraising conditions amid elevated interest rates and geopolitical uncertainty, with capital raised by Asia-focused funds falling last year to the lowest level in more than a decade, according to Bain & Company . Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.