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

As per the firm’s analysis, updated wafer fabrication instrumentality (WFE) investigation specifies that leading-edge foundry spending is anticipated to beryllium the fastest-growing conception successful the semiconductor instrumentality market.

It has a projected calendar twelvemonth 2026-2027 compound yearly maturation complaint (CAGR) of 20%, arsenic compared to 15% for memory, led by TSMC and Samsung’s foundry operations.

The upgrade is simply a reflection of TD Cowen’s higher CY27 net estimation of astir $50 per share, which sits supra Street expectations.

"With attraction centered connected representation WFE amid rising DRAM/NAND pricing, our updated WFE enactment points to leading-edge foundry arsenic the fastest-growing pouch of walk connected a CY26–27 CAGR ground (20% vs 15% for memory), led by TSMC (& Samsung foundry based connected their TSLA execution). We are upgrading KLAC from Hold to Buy & expanding our PT to $1,800 (36x our caller CY27 estimates of ~$50, vs Street's $44)."

KLA Corporation (NASDAQ:KLAC) is simply a semiconductor manufacturing corp engaged successful the design, manufacture, and selling of process control, process-enabling, and output absorption solutions for the semiconductor and related electronics industries worldwide.

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: 11 AI Stocks connected the Market’s Radar and 12 Hot AI Stocks to Keep connected Your Radar

Disclosure: None.