KLA (KLAC) Gets Upgrade as Foundry-Led WFE Demand Accelerates

KLA Corporation (NASDAQ:KLAC) is one of the 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.

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