Liontrust Sustainable Future Defensive Managed Fund on KLA Corporation
Thesis
Liontrust bought KLA because of its leading position in semiconductor process control, supplying inspection and measurement tools needed to raise yields and reduce manufacturing defects. As chip fabrication grows more complex and expensive, particularly for AI processors, the importance of KLA’s technology increases. The fund highlights its dominant market position, high margins and disciplined management as competitive strengths. The shares had fallen substantially from recent highs despite an improving growth outlook, offering what Liontrust viewed as an attractive entry point.
“Despite an improving growth outlook, the shares had fallen significantly from recent highs, presenting what we believed was an attractive entry point.”
Key risks
- Any material slowdown in AI-related semiconductor capacity investment.
- Valuation and market volatility in AI-linked semiconductor names.
- Higher bond yields weighing on technology-stock valuations.