10 Trending AI Stocks on Wall Street

6. KLA Corporation (NASDAQ:KLAC)

Number of Hedge Fund Holders: 61

KLA Corporation (NASDAQ:KLAC) is one of the 10 Trending AI Stocks on Wall Street. On January 13, TD Cowen analyst Krish Sankar upgraded the stock from Hold to “Buy” and raised the price target to $1,800.00 from $1,300. With foundry-led WFE demand accelerating, firm analysts have raised CY27 EPS to $50 and driving the PT lift.

As per the firm’s analysis, updated wafer fabrication equipment (WFE) analysis specifies that leading-edge foundry spending is anticipated to be the fastest-growing segment in the semiconductor equipment market.

It has a projected calendar year 2026-2027 compound annual growth rate (CAGR) of 20%, as compared to 15% for memory, led by TSMC and Samsung’s foundry operations.

The upgrade is a reflection of TD Cowen’s higher CY27 earnings estimate of about $50 per share, which sits above Street expectations.

“With attention centered on memory WFE amid rising DRAM/NAND pricing, our updated WFE work points to leading-edge foundry as the fastest-growing pocket of spend on a CY26–27 CAGR basis (20% vs 15% for memory), led by TSMC (& Samsung foundry based on their TSLA execution). We are upgrading KLAC from Hold to Buy & increasing our PT to $1,800 (36x our new CY27 estimates of ~$50, vs Street’s $44).”

KLA Corporation (NASDAQ:KLAC) is a semiconductor manufacturing corporation engaged in the design, manufacture, and marketing of process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide.