Update shared on04 Aug 2025
Fair value Increased 6.86%Analysts have raised KLA’s price target from $870.38 to $930.08, citing a stronger-than-expected recovery in China’s wafer fab equipment market and KLA’s advantaged position in the GAA technology transition, though some caution remains due to elevated valuation and limited near-term catalysts.
Analyst Commentary
- Bullish analysts are raising price targets due to a stronger-than-expected recovery in China’s wafer fab equipment market, with forecasts improving from a 12% YoY decline to just a 3% drop in 2025.
- KLA is seen as the primary beneficiary of the Gate-All-Around (GAA) technology transition, strengthening conviction in the company’s growth prospects.
- Some bearish analysts raise caution on valuation, pointing out that KLA shares trade significantly above historical median price-to-earnings ratios following sharp stock outperformance.
- Bearish analysts express uncertainty about drivers for further 2026 upside, given already above-consensus estimates and limited visibility into additional catalysts.
- Further caution stems from expectations of only limited spending growth driven primarily by TSMC’s 2nm/3nm node development, with Intel and Samsung facing another transition year.
What's in the News
- Issued Q1 guidance: revenue $3.15B +/- $150M, GAAP diluted EPS $8.28 +/- $0.77, net income per share $7.51–$9.05.
- Added to the Russell 1000 Growth-Defensive Index.
- Added to the Russell 1000 Defensive Index.
- Opened $138M R&D and manufacturing center in Newport, Wales, with expanded capacity for 750 employees and enhanced semiconductor innovation capabilities.
- Announced quarterly dividend of $1.90 per share.
Valuation Changes
Summary of Valuation Changes for KLA
- The Consensus Analyst Price Target has risen from $870.38 to $930.08.
- The Net Profit Margin for KLA has risen slightly from 34.87% to 35.61%.
- The Consensus Revenue Growth forecasts for KLA remained effectively unchanged, at 6.8% per annum.
Disclaimer
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