11 AI Stocks That Should Be On Your Watchlist

4. KLA Corporation (NASDAQ:KLAC)

Number of Hedge Fund Holders: 61     

KLA Corporation (NASDAQ:KLAC) markets process control and yield management solutions for the semiconductor industry. On January 22, Susquehanna analyst Mehdi Hosseini raised the firm’s price target on KLA Corporation to $655 from $620 and kept a “Neutral” rating on the shares. The firm had updated its outlook for the semiconductor industry which revealed that spending on wafer fab equipment, which is used to make computer chips, is expected to be around $94 billion in 2025, down 6% year-over-year. Nevertheless, the firm forecasts spending to increase in 2026 by 6%. It also stated that wafer fab equipment is expected to remain in the $90B-$100B range through 2026. The analysts also told investors in their research note that increased test time and end-market demand diversification are likely to help.