
KLA-Tencor (KLAC) Stock Forecast & Price Target
KLA-Tencor (KLAC) Analyst Ratings
Bulls say
KLA, a leading manufacturer in the semiconductor wafer fabrication equipment sector, is well-positioned for growth, bolstered by a strong demand forecast in the Advanced Packaging market, projected to exceed $11 billion and grow approximately 20% year-over-year. The company has raised revenue estimates for the upcoming fiscal years, with projections now at $13.6 billion for CY26 and $15.2 billion for CY27, reflecting a positive trajectory driven by robust demand in core and advanced packaging segments. Additionally, KLA's majority share in the semiconductor process control market, coupled with significant growth in DRAM and NAND sectors, positions it advantageously against its key customers, including industry giants like TSMC and Samsung, contributing to a sustained revenue outlook.
Bears say
The analysis highlights several fundamental challenges facing KLA, particularly concerning its exposure to the Chinese market, which is anticipated to decline as revenue could slip from approximately 31% in 2025 to around 25% in 2026, translating to a projected 10-20% drop in revenue next year. Additionally, the company’s market share within the semiconductor process control segment is expected to trend downward to 6-7% by 2026, driven by an unfavorable shift in the wafer fabrication equipment mix. These factors, coupled with the anticipated reduction of $300 million in revenue due to compliance with the Bureau of Industry and Security's 50% rule, contribute to a negative outlook for KLA's stock 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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