35 Chip Stocks Powering AI Boom

Page 20 of 33

14. 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 expects the foundry and logic business to experience tailwinds going into the second half of 2024 as capital investments in chip manufacturing ramp up across the United States. These investments will also impact process control products and tools and services business amid growing demand for metrology systems and advanced packaging systems. Chip designers are seeking to bolster their advanced chips with KLA products to support the demand driven by AI infrastructure.

KLA Corporation (NASDAQ:KLAC) has attracted the attention of analysts on Wall Street. Argus recently raised the price target on the stock to $875 from $800 and kept a Buy rating, citing the company’s Q4 earnings beat, and also noting that its quarterly revenue and EPS grew on a year-on-year basis for the first time in five quarters. In an investor note, the advisory underlined that memory demand also continued to recover sequentially and grew year-over-year in the quarter in a positive sign for demand recovery.

Page 20 of 33