Oppenheimer Raised the Firm's PT on KLA Corporation (KLAC), Kept an Outperform Rating

KLA Corporation (NASDAQ:KLAC) is one of the Best Performing Quantum Computing Stocks So Far in 2025. On August 1, Oppenheimer raised the firm’s price target on KLA Corporation (NASDAQ:KLAC) from $950 to $1,000, while maintaining an Outperform rating on the stock.

The increased price target follows the company’s Q4 2025 earnings release, where the company exceeded expectations. KLA Corporation (NASDAQ:KLAC) reported revenue of $3.17 billion, reflecting a 23.59% year-over-year increase and ahead of expectations by $94.87 million. Moreover, the EPS of $9.38 also beat consensus by $0.83.

The firm noted that the company forecasts for Q1 2026 also exceed consensus estimates by 3% and 4% for revenue and EPS, respectively. The firm highlighted that key drivers for this growth include strong demand for AI-related technology and its N2 logic chips. Moreover, the rising process control intensity and gains in the advanced packaging segment are contributing to growth.

KLA Corporation (NASDAQ:KLAC) makes advanced equipment and software used to inspect and control the manufacturing process of semiconductor chips. The company’s technologies are also used to manufacture quantum devices.

While we acknowledge the potential of KLAC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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