KLA Corp. (KLAC) has received a new price target of $680 from a major brokerage, marking the highest on the street. The upgrade follows robust fourth-quarter results and sustained demand in semiconductor manufacturing equipment. Investors are evaluating whether the stock’s momentum warrants a buy now.
- New price target of $680 for KLA Corp. (KLAC), highest on the street
- Q4 2025 revenue: $1.32 billion, up 12% YoY
- Adjusted EPS: $4.53, 9% above estimates
- Order backlog: $1.1 billion, up 18% QoQ
- Major $210 million contract with a leading Taiwan foundry
- Forward P/E: 28.5, with projected FY2026 EPS growth of 19%
KLA Corp. (KLAC) has surged in investor attention after a top-tier brokerage firm raised its price target to $680, the highest among analysts covering the stock. This marks a significant increase from prior estimates and reflects growing confidence in KLA’s long-term prospects. The stock currently trades around $595, implying a projected upside of nearly 14% based on the new target. The upgrade comes on the heels of KLA’s Q4 2025 earnings, where the company reported revenue of $1.32 billion, exceeding expectations by 7% and representing a 12% year-over-year growth. Adjusted earnings per share of $4.53 surpassed estimates by 9%, driven by strong demand for process control and yield management tools across advanced logic and memory chip production. Key indicators reinforce the positive outlook: KLA’s order backlog reached $1.1 billion at the end of the quarter, up 18% from Q3 and the highest in over two years. The company also secured a major contract with a leading foundry in Taiwan, valued at $210 million, to supply inspection systems for 2nm node fabrication lines. These developments highlight KLA’s pivotal role in enabling next-generation semiconductor manufacturing. Market participants are closely watching KLA’s performance as the global semiconductor industry enters a capital-intensive expansion phase. The stock’s forward P/E ratio of 28.5 remains elevated but is justified by the company’s 19% projected EPS growth for FY2026. Institutional ownership has increased by 3.2 percentage points in the past quarter, signaling strong confidence among large investors.