KLA Corporation (NASDAQ:KLAC) is one of the 10 Best High-Bandwidth Memory (HBM4) Value Chain Stocks to Buy According to Hedge Funds. On June 9, UBS analyst Timothy Arcuri raised the firm’s price target on KLA Corporation (NASDAQ:KLAC) from $1770 to $2180 while keeping a Neutral rating. The upwardly revised price target suggests a further 1.9% upside from current levels.
KLA Corporation (NASDAQ:KLAC) began June on a positive note. On June 1, J.P. Morgan said that it sees strong long-term growth potential for the company and believes it could earn $95 per share by 2030. According to the firm, KLAC is benefiting from the rising demand for process control tools. This segment of the semiconductor equipment market is expanding at a faster pace than the broader industry.
J.P. Morgan analyst Harlan Sur stated:
“We attribute KLA’s continued share gains to a strong backdrop of leading-edge investments in foundry/logic WFE in CY25, alongside share capture in optical inspection, ebeam inspection/review, advanced packaging wafer-level inspection, and macro defect inspection. We believe KLA remains well-positioned to gain further share moving forward as capital intensity at the leading edge remains elevated and KLAC’s process control tools remain critical to optimizing performance, yield, and costs.”
This rising demand was also confirmed by Oppenheimer in May. The firm highlighted that the company’s third-quarter earnings were slightly better than expected but not stronger. This was mainly due to taxes, higher DRAM-related costs, and recent estimate revisions after Investor Day. It also noted that supply and fab capacity constraints are temporarily limiting how much earnings estimates can be increased. This is happening even though demand is stronger and is projected to improve further by 2027.
KLA Corporation (NASDAQ:KLAC) provides process-control and process-enabling equipment, software, and services used in semiconductor wafer, reticle, integrated circuit, packaging, and printed circuit board manufacturing.
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 the cheapest AI stock.
READ NEXT: 12 Best Mid-Cap AI Stocks to Buy According to Analysts and Best 52-Week Low Stocks to Buy According to Hedge Funds.
Disclosure: None. Follow Insider Monkey on Google News.
