JPMorgan Reiterates Overweight on KLA (KLAC) as Process Control Sales Lead WFE Growth

KLA Corporation (NASDAQ:KLAC) ranks among the 20 best fast growth stocks to invest in. JPMorgan analysts maintained their price target of $900 and reiterated their Overweight rating on KLA Corporation (NASDAQ:KLAC) on June 3. This update is in line with the ongoing success of wafer front end (WFE) equipment sales, which increased by 6-8% in 2024 to reach between $97 billion and $99 billion.

JPMorgan Reiterates Overweight on KLA (KLAC) as Process Control Sales Lead WFE Growth

Apart from lithography exports, process control systems, which include inspection and measurement systems, performed better than other WFE spending categories, showing a noteworthy 12% growth in 2024.

As the semiconductor industry navigates the challenges of changing technologies and rising production needs, the analysts’ remarks highlight the significance of process control systems in the manufacturing process.

KLA Corporation (NASDAQ:KLAC) develops, manufactures, and distributes process control, process-enabling, and yield management products for the semiconductor and associated electronics industries.

While we acknowledge the potential of KLAC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than KLAC and that has 100x upside potential, check out our report about this cheapest AI stock.

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