30 Most Important AI Stocks According to BlackRock

13. KLA Corporation (NASDAQ:KLAC)

Number of Hedge Fund Holders: 55     

KLA Corporation (NASDAQ:KLAC) markets process control and yield management solutions for the semiconductor industry. The company is well-positioned to benefit from the CHIPS Act, a legislative initiative aimed at revitalizing chip manufacturing in the US. Additionally, it stands to gain from the growing AI trend as firms invest in AI data centers, which rely heavily on these chips. The firm is expected to offer services like wafer inspection systems for advanced nodes and strengthen its presence in testing and packaging segments. In the final three months of fiscal 2024, the company’s AI services business reached $614 million, reflecting a 4% increase sequentially and 14% growth year-over-year.

Richard Wallace, the CEO of KLA Corporation (NASDAQ:KLAC), noted during the fourth-quarter earnings call that long-term drivers, such as foundry logic, continued technology scaling, and the gradual rise in capital intensity, remain favorable for the company. He also mentioned that memory markets are expected to return to growth in 2025, driven by technological developments in AI, high-bandwidth memory, and an improving supply-demand balance.