KLA Corp (KLAC) Has a Shortage That Can't Be Met, Says Jim Cramer

We recently published 14 Stocks on Jim Cramer’s Radar.  KLA Corporation (NASDAQ:KLAC) is one of the stocks on Jim Cramer's radar.

KLA Corporation (NASDAQ:KLAC) makes and sells equipment used in the chip manufacturing process. Its shares are up by 119% over the past year and by 21% year-to-date. Morgan Stanley increased the stock’s rating to Overweight from Equalweight and the share price target to $1,697 from $1,214 in January. The bank commented that KLA Corporation (NASDAQ:KLAC) could grow its revenue by double-digit percentages over the next couple of years. Bernstein also initiated coverage on the stock in January, as it set a $1,700 share price target and an Overweight rating. The financial firm, like Morgan Stanley, also mentioned KLA Corporation (NASDAQ:KLAC)’s potential for a double-digit revenue growth rate for the next couple of years. One factor that Bernstein’s coverage focused on was a lower exposure to China replacement risks. Cramer mentioned KLA Corporation (NASDAQ:KLAC) in the context of strong demand and share price performance:

“Okay, so, here’s the ones that have a shortage that can’t be met. . . .KLA. . .being semiconductor capital equipment. Those stocks are up. . .this is from the year began. . .KLA 25.”

While we acknowledge the potential of KLAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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.