KLAC vs. TSM
KLAC (KLA Corporation) and TSM (Taiwan Semiconductor Manufacturing Company Limited) are both stocks. Both are in the Technology sector — KLAC in Semiconductor Equipment & Materials, TSM in Semiconductors. Over the past 10 years, KLAC returned 45.08%/yr vs 35.80%/yr for TSM. A 0.56 correlation means they provide meaningful diversification when combined.
Performance
KLAC vs. TSM - Performance Comparison
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Returns By Period
In the year-to-date period, KLAC achieves a 110.02% return, which is significantly higher than TSM's 40.22% return. Over the past 10 years, KLAC has outperformed TSM with an annualized return of 45.08%, while TSM has yielded a comparatively lower 35.80% annualized return.
KLAC
- 1D
- 5.55%
- 1M
- 37.79%
- YTD
- 110.02%
- 6M
- 113.75%
- 1Y
- 192.78%
- 3Y*
- 75.88%
- 5Y*
- 52.93%
- 10Y*
- 45.08%
TSM
- 1D
- 0.68%
- 1M
- 6.28%
- YTD
- 40.22%
- 6M
- 45.91%
- 1Y
- 98.93%
- 3Y*
- 60.80%
- 5Y*
- 31.30%
- 10Y*
- 35.80%
KLAC vs. TSM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
KLAC KLA Corporation | 110.02% | 94.48% | 9.36% | 56.05% | -11.20% | 68.05% | 47.94% | 103.99% | -12.49% | 36.80% |
TSM Taiwan Semiconductor Manufacturing Company Limited | 40.22% | 55.91% | 92.58% | 42.33% | -36.75% | 12.09% | 92.67% | 64.85% | -3.50% | 41.46% |
Correlation
The correlation between KLAC and TSM is 0.64, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.64 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.66 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.68 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.66 |
Correlation (All Time) Calculated using the full available price history since Oct 9, 1997 | 0.56 |
The correlation between KLAC and TSM shifts across timeframes, from 0.56 (all time) to 0.68 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
KLAC:
$33.62B
TSM:
$2.20T
KLAC:
$35.29
TSM:
NT$373.98
KLAC:
7.21
TSM:
35.89
KLAC:
0.27
TSM:
1.03
KLAC:
2.57
TSM:
16.87
KLAC:
5.77
TSM:
11.82
KLAC:
$13.10B
TSM:
NT$4.13T
KLAC:
$8.09B
TSM:
NT$2.55T
KLAC:
$5.77B
TSM:
NT$3.14T
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Return for Risk
KLAC vs. TSM — Risk / Return Rank
KLAC
TSM
KLAC vs. TSM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for KLA Corporation (KLAC) and Taiwan Semiconductor Manufacturing Company Limited (TSM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| KLAC | TSM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.22 | ||
| Sortino ratioReturn per unit of downside risk | +0.44 | ||
| Omega ratioGain probability vs. loss probability | 1.54 | 1.40 | +0.14 |
| Calmar ratioReturn relative to maximum drawdown | 8.66 | 5.48 | +3.18 |
| Martin ratioReturn relative to average drawdown | 27.54 | 19.42 | +8.11 |
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Drawdowns
KLAC vs. TSM - Drawdown Comparison
The maximum KLAC drawdown since its inception was -83.74%, smaller than the maximum TSM drawdown of -89.08%. Use the drawdown chart below to compare losses from any high point for KLAC and TSM.
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Drawdown Indicators
| KLAC | TSM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -83.74% | -89.08% | +5.34% |
Max Drawdown (1Y)Largest decline over 1 year | -22.41% | -18.14% | -4.27% |
Max Drawdown (3Y)Largest decline over 3 years | -34.95% | -36.82% | +1.87% |
Max Drawdown (5Y)Largest decline over 5 years | -40.28% | -56.47% | +16.19% |
Max Drawdown (10Y)Largest decline over 10 years | -40.28% | -56.47% | +16.19% |
Current DrawdownCurrent decline from peak | 0.00% | -4.87% | +4.87% |
Average DrawdownAverage peak-to-trough decline | -29.32% | -42.85% | +13.53% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 7.03% | 5.11% | +1.92% |
Volatility
KLAC vs. TSM - Volatility Comparison
KLA Corporation (KLAC) has a higher volatility of 22.17% compared to Taiwan Semiconductor Manufacturing Company Limited (TSM) at 13.42%. This indicates that KLAC's price experiences larger fluctuations and is considered to be riskier than TSM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| KLAC | TSM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 22.17% | 13.42% | +8.75% |
Volatility (6M)Calculated over the trailing 6-month period | 42.02% | 28.65% | +13.37% |
Volatility (1Y)Calculated over the trailing 1-year period | 49.38% | 36.69% | +12.69% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 43.88% | 37.46% | +6.42% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 41.86% | 34.23% | +7.63% |
Dividends
KLAC vs. TSM - Dividend Comparison
KLAC's dividend yield for the trailing twelve months is around 0.31%, less than TSM's 0.83% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
KLAC KLA Corporation | 0.31% | 0.61% | 0.96% | 0.92% | 1.25% | 0.91% | 1.35% | 1.74% | 3.17% | 2.15% | 2.67% | 2.94% |
TSM Taiwan Semiconductor Manufacturing Company Limited | 0.83% | 1.00% | 1.18% | 1.78% | 2.49% | 1.57% | 1.56% | 3.46% | 3.64% | 2.32% | 2.61% | 2.54% |
Financials
KLAC vs. TSM - Financials Comparison
This section allows you to compare key financial metrics between KLA Corporation and Taiwan Semiconductor Manufacturing Company Limited. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
KLAC vs. TSM - Profitability Comparison
KLAC - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, KLA Corporation reported a gross profit of 2.09B and revenue of 3.42B. Therefore, the gross margin over that period was 61.1%.
TSM - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Taiwan Semiconductor Manufacturing Company Limited reported a gross profit of 759.06B and revenue of 1.15T. Therefore, the gross margin over that period was 66.3%.
KLAC - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, KLA Corporation reported an operating income of 1.41B and revenue of 3.42B, resulting in an operating margin of 41.2%.
TSM - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Taiwan Semiconductor Manufacturing Company Limited reported an operating income of 664.08B and revenue of 1.15T, resulting in an operating margin of 58.0%.
KLAC - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, KLA Corporation reported a net income of 1.20B and revenue of 3.42B, resulting in a net margin of 35.2%.
TSM - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Taiwan Semiconductor Manufacturing Company Limited reported a net income of 578.40B and revenue of 1.15T, resulting in a net margin of 50.5%.
Frequently Asked Questions
KLAC and TSM have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
KLAC has higher volatility (22.17%) compared to TSM (13.42%). In terms of maximum drawdown, KLAC dropped -83.74% vs TSM's -89.08%.
KLAC currently has the higher Sharpe Ratio (3.93 vs 2.71), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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