
KLA-Tencor (KLAC) Stock Forecast & Price Target
KLA-Tencor (KLAC) Analyst Ratings
Bulls say
KLA benefits from its dominant position in semiconductor process control, which includes significant revenue contributions from the advanced packaging sector expected to reach $925 million, reflecting a 70% year-over-year increase. The company's sales distribution is anticipated to shift, with foundry sales forecasted to increase to 75% and memory sales (NAND and DRAM) to contribute 25%, emphasizing a strong demand outlook. Additionally, management highlighted an expanding total addressable market of $11 billion in advanced packaging, growing at approximately 20% year-over-year, which presents a substantial growth opportunity for KLA and supports its positive revenue projections through CY26 and CY27.
Bears say
KLA faces significant challenges in maintaining its revenue growth, particularly due to anticipated declines in its Chinese market exposure, with projections indicating a drop from approximately 31% of revenues in 2025 to 25% in 2026. The company's market share in the semiconductor wafer fabrication equipment (WFE) sector is expected to weaken, potentially trending down to 6-7% by 2026, driven by unfavorable shifts in the WFE mix. Additionally, a recent regulatory change is projected to further decrease KLA's revenue from China by $300 million from the fourth quarter of 2025 to the fourth quarter of 2026, reinforcing a negative outlook on the company's financial performance.
This aggregate rating is based on analysts' research of KLA-Tencor and is not a guaranteed prediction by Public.com or investment advice.
KLA-Tencor (KLAC) Analyst Forecast & Price Prediction
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