KLA Corporation (KLAC) Down 15% Since FQ2 2026 Earnings, Here’s What the Street Thinks About the Stock

KLA Corporation (NASDAQ:KLAC) is one of the Best Technology Stocks to Buy for the Long Term. KLA Corporation (NASDAQ:KLAC) is down more than 15% since the release of its fiscal Q2 2026 earnings reported on January 29. Wall Street remains bullish on the stock with analysts 12-month average price target reflecting 23.15% upside.

Recently, on February 25, Morgan Stanley reiterated a Buy rating on the stock and raised the firm’s price target from $1,751 to $1,809. The firm cited raising 2026 and 2027 wafer fab equipment growth forecasts. Morgan Stanley expects wafer fab equipment to grow by 23% in 2026, up from the previous expectation of 13%, and by 27% in 2027, up from the previous expectation of 19%. The improved outlook is based on increased DRAM memory spending told the firm in a research note.

The drop in share price comes despite revenue and EPS exceeding expectations. KLA Corporation (NASDAQ:KLAC) posted $3.30 billion in quarterly revenue, up 7.16% year-over-year and ahead of expectations by $46.47 million. The EPS of $8.85 also topped expectations by $0.05.

Photo from Marvell website

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 risk and potential of KLAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KLAC and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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