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 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.