Can KLA Corporation (KLAC) Capture Its Share of a $250 Billion Global Chip Equipment Market?

Posonskyi Andrey/Shutterstock.com

The expert noted that the people rise sits wrong BofA's thesis that the adjacent $1 trillion successful semiconductor manufacture revenues volition beryllium unlocked by factors that are already successful play. AI information halfway concern and surging WFE spending transportation the bulk of the value of BofA's thesis. Altogether, the factors convinced Arya and his squad of semiconductor manufacture analysts to propulsion BofA's WFE forecast each the mode to $250 cardinal by 2028.

KLA's ain CFO Bren Higgins, told investors astatine the Bank of America Tech Conference connected June 3 that the wide semiconductor instrumentality marketplace for 2026 could extremity up somewhat larger than the $140 billion-plus the institution had antecedently projected. Higgins besides expects meaningful maturation into 2027 arsenic caller spot factories nether operation statesman filling up with equipment. He added that KLA's semipermanent readying assumes a $215 cardinal WFE marketplace by 2030, and that the existent momentum volition transcend anterior forecasts.

KLA Corporation (NASDAQ:KLAC) is simply a semiconductor process power and output absorption company. It develops and sells inspection, measurement, and information analytics systems utilized to place defects and optimize manufacturing yields during spot production. The institution serves foundries, logic spot makers, and representation manufacturers.

While we admit the imaginable of KLAC arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 10 Best Fast Growth Stocks to Buy According to Hedge Funds and 15 Best AI Stocks Under $10 to Buy Now.

Disclosure: None. Follow Insider Monkey connected Google News.