
KLA-Tencor (KLAC) Stock Forecast & Price Target
KLA-Tencor (KLAC) Analyst Ratings
Bulls say
KLA's dominant position in the semiconductor process control segment positions it favorably for growth, particularly with evidence of strengthening demand in both DRAM and NAND markets, projected to enhance revenues by approximately $1-2 billion year-over-year. With expectations for the foundry segment to account for 75% of sales and a significant uplift in advanced packaging revenues, KLA anticipates reaching over $925 million in this area, reflecting a 70% year-over-year increase. Furthermore, management highlighted an expanding addressable market of $11 billion in advanced packaging, which is expected to grow at around 20% annually, supporting prolonged revenue growth and enhancing KLA's overall financial outlook.
Bears say
KLA's financial outlook remains concerning due to anticipated declines in revenue from China, projected to fall from approximately 31% in CY25 to around 25% in CY26, which is exacerbated by the recent BIS rules potentially reducing revenue by $300 million between C4Q25 and C4Q26. Estimates suggest a significant decrease in the semiconductor wafer fabrication equipment (WFE) market, with adjusted projections indicating market sizes dropping below $107 billion and $110 billion for 2025 and 2026, respectively. Additionally, KLA is expected to see its process control market share decline to 6-7% by 2026, resulting in potential revenue declines of 10-20% in the upcoming year.
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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