10 AI Stocks on Analysts’ Radars

2. KLA Corp. (NASDAQ:KLAC)

Number of Hedge Fund Holders: 61

KLA Corp. (NASDAQ:KLAC) supplies process control and yield management systems for the semiconductor, nanoelectronics, automotive, and data center industries. The company manufactures equipment like surface profilers, nano chemical testers, and KT pro equipment used in the production of wafers, integrated circuits, and printed circuit boards. KLA Corp. (NASDAQ:KLAC) is integrating AI and deep learning algorithms in wafer and PCB defect inspection and smart IC manufacturing processes through e-beam image and automation while maintaining yield and visibility to minimize errors and drive innovation without slowing down production

On January 31st, Deutsche Bank increased KLA Corp.’s (NASDAQ:KLAC) target price to $850 from $725 and retained a “Buy” rating. The brokerage said the company reported “yet another solid print,” with revenue upside fueled by consistent momentum in high-bandwidth memory and leading-edge spending. Analysts expect KLA Corp.’s (NASDAQ:KLAC) fundamentals to keep outperforming peers in the near term, arguing that the growing difficulty of semis manufacturing against an uncertain cyclical environment “should offer an attractive combination of both offensive and defensive traits.”