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KLA Corporation (NASDAQ:KLAC) is one of the Jim Cramer’s Hottest AI Stock Picks. KLA Corporation (NASDAQ:KLAC) is exposed to the AI market through its ability to manufacture products that are used in semiconductor fabrication. The shares are up by 105% over the past year and by 91% since Cramer discussed the firm on February 18th. 2025 was a strong year for KLA Corporation (NASDAQ:KLAC)’s stock, with the only wrinkle in the performance coming in August when the stock closed 8.4% lower on August 15th. The shares dipped after peer firm Applied Materials guided a 15% profit dip in its fourth quarter. Similarly, KLA Corporation (NASDAQ:KLAC)’s shares dipped on August 30th as the US government levied more restrictions on chip equipment sales to China. However, the biggest dip came on January 30th after the stock closed 15% lower following the firm’s second quarter earnings report, which saw CFO Bren Higgins discuss longer equipment lead times and the impact of tariffs on profit. In February 2025, Cramer recommended KLA Corporation (NASDAQ:KLAC) as a long-term pick in a Mad Money appearance:

Jim Cramer Recommended Putting KLA (KLAC) "in the Drawer" In February 2025

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“We want this to be the stock you put away in the drawer. No drama, just steady growth.”

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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