15 Most Promising Technology Stocks to Buy Now

7. KLA Corporation (NASDAQ:KLAC)

Number of Hedge Funds: 61

Potential Upside: 13%

KLA Corp. (NASDAQ:KLAC) is a prominent supplier of process control and yield management systems for the semiconductor industry. The company’s comprehensive portfolio includes inspection, metrology, and data analysis solutions that assist semiconductor manufacturers in achieving optimal productivity and high-quality output.

KLA Corp. (NASDAQ:KLAC)’s cutting-edge technologies play a crucial role in the manufacturing of integrated circuits and other microelectronics, ensuring high precision and efficiency in semiconductor production. On January 31, Goldman Sachs raised its price target on the shares to $864 while reaffirming a Buy rating. This adjustment was driven by the company’s strong financial performance and optimistic outlook, highlighted by a 97% return on equity and two decades of consistent dividend payments. Morgan Stanley also revised its outlook on KLA Corporation (NASDAQ:KLAC), lifting its price target from $703 to $748 while maintaining an Equal-Weight rating. The firm acknowledged potential market softening, particularly in the Dynamic Random Access Memory (DRAM) segment, but noted that the company may be better positioned than its competitors. Morgan Stanley attributed this resilience to KLA Corp. (NASDAQ:KLAC)’s strong presence in advanced logic, as well as its ability to leverage longer lead times and higher margins, which could help mitigate the impact of market fluctuations.