
KLA-Tencor (KLAC) Stock Forecast & Price Target
KLA-Tencor (KLAC) Analyst Ratings
Bulls say
KLA demonstrates a strong positive outlook due to its dominant positioning in the semiconductor process control market, where it holds a majority share and counts top global chipmakers like TSMC and Samsung among its customers. The company anticipates significant growth in various segments, including a projected 20% increase in the advanced packaging market, which now represents an $11 billion opportunity, further supported by a robust packaging revenue forecast exceeding $925 million, reflecting a 70% year-over-year growth. Additionally, KLA's revenue estimates for the upcoming fiscal years have been revised upward, indicating sustained demand and capacity expansion in the semiconductor sector.
Bears say
KLA faces a negative outlook primarily due to anticipated declines in revenue from China, which is projected to decrease from approximately 31% of sales in CY25 to around 25% in CY26, suggesting a 10-20% decline next year. Furthermore, adjustments in the Wafer Fabrication Equipment (WFE) market are expected to lower KLA's market share in the process control segment to 6-7% by 2026, compounded by the unfavorable mix shift in WFE between logic and memory. Additionally, the impact of the recent BIS 50% rule could lead to a reduction of $300 million in China revenue from Q4 2025 to Q4 2026, further straining the company's financials.
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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