Where is KLA Corporation (KLAC) Headed According to the Street?

KLA Corporation (NASDAQ:KLAC) is one of the best semiconductor equipment stocks to invest in now.

KLA Corporation (NASDAQ:KLAC) received several rating updates in February. On February 26, Citi opened an “upside 30-day catalyst watch” on KLA Corporation (NASDAQ:KLAC) and maintained a Buy rating on the shares, setting a price target of $1,800. The firm believes that the company will issue 2030 targets that can reach $24 billion in revenue and $68 in earnings per share.

On February 24, Morgan Stanley lifted the price target on KLA Corporation (NASDAQ:KLAC) to $1,809 from $1,751 while maintaining an Overweight rating on the shares. The firm told investors in a research note that it raised its 2026 and 2027 wafer fab equipment market growth forecasts to 23% and 27% from 13% and 19%, respectively, driven by DRAM memory spending.

KLA Corporation (NASDAQ:KLAC) also received a rating update from Jefferies on February 12. The firm lifted the price target on the stock to $520 from $390 on February 12, maintaining a Buy rating on the shares and telling investors that the company’s low-double digit WFE growth outlook is more in line with KLA Corp’s view than the higher Lam Research forecast. Jefferies also believes that the outlook offered by Nova is "on the conservative end and there is room for upside".

KLA Corporation (NASDAQ:KLAC) is involved in the supply of process control and yield management solutions for the semiconductor and related nano-electronics industries. The company’s operations are divided into the following operations: Semiconductor Process Control, Specialty Semiconductor Process, and PCB, Display, and Component Inspection.

While we acknowledge the potential of KLAC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.