KLA (KLAC) Will get Improve as Foundry-Led WFE Demand Accelerates

KLA Company (NASDAQ:KLAC) is likely one of the Trending AI Shares on Wall Road. On January 13, TD Cowen analyst Krish Sankar upgraded the inventory from Maintain to “Purchase” and raised the worth goal to $1,800.00 from $1,300. With foundry-led WFE demand accelerating, agency analysts have raised CY27 EPS to $50 and driving the PT carry.

As per the agency’s evaluation, up to date wafer fabrication gear (WFE) evaluation specifies that modern foundry spending is anticipated to be the fastest-growing phase within the semiconductor gear market.

It has a projected calendar 12 months 2026-2027 compound annual development charge (CAGR) of 20%, as in comparison with 15% for reminiscence, led by TSMC and Samsung’s foundry operations.

The improve is a mirrored image of TD Cowen’s larger CY27 earnings estimate of about $50 per share, which sits above Road expectations.

“With consideration centered on reminiscence WFE amid rising DRAM/NAND pricing, our up to date WFE work factors to modern foundry because the fastest-growing pocket of spend on a CY26–27 CAGR foundation (20% vs 15% for reminiscence), led by TSMC (& Samsung foundry based mostly on their TSLA execution). We’re upgrading KLAC from Maintain to Purchase & rising our PT to $1,800 (36x our new CY27 estimates of ~$50, vs Road’s $44).”

KLA Company (NASDAQ:KLAC) is a semiconductor manufacturing company engaged within the design, manufacture, and advertising and marketing of course of management, process-enabling, and yield administration options for the semiconductor and associated electronics industries worldwide.

Whereas we acknowledge the potential of KLAC as an funding, we consider sure AI shares supply better upside potential and carry much less draw back threat. Should you’re searching for a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring development, see our free report on the finest short-term AI inventory.

Disclosure: None.