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EARNINGS RESULTS

KLA Corp.’s quarterly results topped Wall Street estimates late Wednesday, but
its outlook didn’t, and while that depressed shares at first, the stock swung to
a gain after hours as the chip making-equipment supplier pointed to a growing
stability in its end markets.



KLA  shares ticked up 2.7% after hours, following a 0.1% decline in the regular
session to close at $357.36. While the PHLX Semiconductor Index rose 0.6%, the
S&P 500 index declined 0.4% and the tech-heavy Nasdaq Composite Index rose 0.5%.



KLA forecast earnings of $4.23 to $5.43 a share on revenue of $2.13 billion to
$2.38 billion in the fiscal fourth quarter. Analysts surveyed by FactSet had
estimated $5.32 a share on revenue of $2.37 billion for the fiscal fourth
quarter.

In its letter to shareholders, Milpitas, Calif.-based KLA reiterated its
forecast of a 20% decline in the wafer-fab equipment market to $75 billion in
2023 from 2022’s $95 billion.

“While the timing of a meaningful resumption in WFE investment growth remains
unclear, we do see overall demand stabilizing around current business levels for
our semiconductor process-control systems business, and we expect this demand
profile to continue through the second half of the calendar year,” the company
said.

When asked how the company could be so confident given that memory-chip fabs
still have inventory, Bren Higgins, KLA’s chief financial officer, told analysts
on a conference call that memory had fallen to just 14% of the company’s
business.



“You go back in our recent history, [the percent of revenue from memory fabs]
hasn’t been that low really ever,” Higgins told analysts. “While the second half
might be a little bit stronger than the first half, given how low the first half
was, it’s still pretty low overall in terms of our forecast and expectations.”

Higgins said that could grow to 23% in the second half of the year, and that
“there’s some wild cards around how customers ultimately spend.”

Rick Wallace, KLA’s chief executive, added that when one looked at the company’s
business “more tied to capacity in memory, that’s not really showing up.” What’s
showing up are sales to foundry and logic fabs, he said.

Plus, Wallace said, even customers that had low-capacity use still had to keep
up with technological developments, requiring new equipment purchases, and that
there was “some stability in that.”

KLA reported fiscal third-quarter net income of $697.8 million, or $5.03 a
share, compared with $730.6 million, or $4.83 a share, in the year-ago period.
Adjusted earnings, which exclude stock-based compensation expenses and other
items, were $5.49 a share, compared with $5.13 a share in the year-ago period.

Revenue rose to $2.43 billion from $2.29 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast adjusted earnings of $5.32 a share on
revenue of $2.37 billion, based on KLA’s forecast of $4.52 to $5.94 a share on
revenue of $2.2 billion to $2.5 billion.

Last week, rivals Lam Research Corp. and ASML Holding NV both forecast shaky
enough outlooks to prompt analysts to figure a bottom was near term, as did
Taiwan Semiconductor Manufacturing Co.




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Major coins traded mixed on Wednesday after blockchain analytics firm Arkham
Intelligence denied playing a role in the flash crash that saw major
cryptocurrencies tumbling.

Cryptocurrency Gains (+/-) Price (Recorded 9:30 p.m. EST) Bitcoin (CRYPTO: BTC)
+2.13% $28,919 Ethereum (CRYPTO: ETH) +2.05% $1,906 Dogecoin (CRYPTO: DOGE)
-0.52% $0.079



What Happened: According to the latest data from Coinglass, traders were hit
hard with approximately $310 million in losses due to rapid liquidations in the
past 24 hours. 

At the time of writing, the global crypto market capitalization stood at $1.20
trillion, an increase of 1.21% over the last day. 

Trending: What's Going On With Bank Of America (BAC) And Wells Fargo (WFC)
Shares - Bank of America (NYSE:BAC), Wel

Must Read: Bitcoin, Ethereum, Dogecoin Trade Mixed After Arkham Intelligence
Denies 'Buggy' Mt. Gox Alerts: Analyst Predicts Summer Surge For BTC

The U.S. stock market saw a mixed session as the Big Tech earnings sparked
excitement. While the S&P 500 experienced a decline of 0.38%, the tech-driven
Nasdaq Composite managed to gain 0.47%.




See More: Best Crypto Day Trading Strategies



News Highlights: Bitcoin experienced a sharp decline of approximately 7% within
an hour on Wednesday evening, plummeting from $29,850 to $27,789. 

Several reports have attributed this rapid drop to an incorrect alert sent out
by blockchain analytics company, Arkham Intelligence. According to the reports,
the alert falsely claimed that large amounts of Bitcoin were being transferred
to wallets linked to Mt. Gox and the U.S. government. 

After initially acknowledging the mistake and attributing it to a bug fix,
Arkham Intelligence later tweeted that their alerts were accurate in this
particular instance.

Analyst Notes: “Banking jitters have revitalized life back into cryptos. Bitcoin
is surging and so are all the major cryptos as banking stress supports the use
case for digital assets. Bitcoin is still facing a ton of resistance and this
current rally will likely struggle until we get a clearer regulatory framework
for cryptos,” said Edward Moya, Senior Market Analyst at OANDA.



Macroeconomist Henrik Zeberg predicts that Bitcoin is poised to skyrocket this
summer as worries over an impending recession gradually fade away. Zeberg, who
commands a following of over 109,000 on Twitter, asserts that with the king
crypto leading the way, risk assets like cryptocurrencies are set to soar in the
coming months.

Based on Zeberg’s analysis, a “blow-off top” scenario is unfolding for both
stocks and crypto, majorly spurred by a drop in fixed-income yields. Zeberg is
of the view that the market rally will be driven by a significant decline in
yields, while the economy will remain in the comfortable “Goldilocks zone.” 
Overall, the projection is that risk assets like Bitcoin will surge into the
summer season.

Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions
From Twitter Users

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights
reserved.

This article Bitcoin, Ethereum, Dogecoin Trade Mixed After Arkham Intelligence
Denies 'Buggy' Mt. Gox Alerts: Analyst Predicts Summer Surge For BTC originally
appeared on Benzinga.com

.






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