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What Do Analysts Think About KLA Corporation (KLAC)?

KLA Corporation (NASDAQ:KLAC) is one of the best long term growth stocks to buy according to hedge funds. KLA Corporation (NASDAQ:KLAC) received a rating update from Cantor Fitzgerald on January 8. The firm lifted the price target on the stock to $1,750 from $1,500 and maintained an Overweight rating on the shares.

The firm told investors that conviction remains high despite the recent outperformance, with increasing wafer fabrication equipment through CY2026 to CY2028 anticipated to propel solid secular growth, supporting an “All-In” stance. Cantor added that the overweight outlook on large-cap semiconductor capital equipment names remains unchanged, which exhibits confidence in the group being in the early stages of the investment cycle.

Cantor Fitzgerald previously released a rating update on KLA Corporation (NASDAQ:KLAC) on December 16, upgrading the stock to Overweight from Neutral and lifting the price target to $1,500 from $1,350. It told investors that the SOX is positioned to lead markets upwards after outperforming the S&P by roughly 30 points in CY2025, with the trends supported by the early stages of the AI era, and bolstering demand across memory, computer, networking, and equipment.

The firm further stated that while cyclical factors may lead to mixed signals, other factors, such as the anticipated exponential growth in AI infrastructure spending and the macro backdrop, support a long position in the SOX, along with an overweight exposure to AI-related plays into CY2026.

Cantor Fitzgerald’s January 8 rating came the same day KLA Corporation (NASDAQ:KLAC) announced that it will review second-quarter fiscal year 2026 earnings on January 29 at 2 p.m. PT.

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 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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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