Chip Giant ASML (NASDAQ:ASML) Hails AI Boost as Export Controls and Tariffs Weigh

Written by Emily J. Thompson, Senior Investment Analyst

KLAC-0.52%

LRCX-1.97%

TSM+1.79%

Source: TipRanks

Updated: Mar 05 2025

0mins

Source: TipRanks

ASML's Optimism on AI: ASML, a Dutch semiconductor equipment maker, is optimistic about growth driven by artificial intelligence investments from major tech companies, despite facing challenges such as cautious customer spending and supply chain disruptions.
Geopolitical Challenges: The company warns that future geopolitical tensions and regulatory changes, particularly regarding export controls and potential tariffs on chip exports to the U.S., could impact its operations and pricing strategies.

KLAC

$1492.23+Infinity%1D

Analyst Views on KLAC

Wall Street analysts forecast KLAC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for KLAC is 1393 USD with a low forecast of 1214 USD and a high forecast of 1750 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

20 Analyst Rating

14 Buy

6 Hold

0 Sell

Moderate Buy

Current: 1500.000

Low

1214

Averages

1393

High

1750

Current: 1500.000

Low

1214

Averages

1393

High

1750

Deutsche Bank

Hold

upgrade

2026-01-21

New

Reason

Deutsche Bank

Price Target

AI Analysis

2026-01-21

New

upgrade

Hold

Reason

Deutsche Bank raised the firm's price target on KLA Corp. to $1,560 from $1,250 and keeps a Hold rating on the shares. The firm updated the company's model ahead of the earnings report.

UBS

Neutral

maintain

2026-01-20

New

Reason

UBS

Price Target

2026-01-20

New

maintain

Neutral

Reason

UBS raised the firm's price target on KLA Corp. to $1,635 from $1,260 and keeps a Neutral rating on the shares. KLA Corp.'s Q2 revenue is modeled at about $3.3B, reflecting its historical tendency to exceed guidance, with Q3 projected around $3.4B, slightly above Street, factoring in shipment catch-up after the BIS Affiliates rule reversal, the analyst tells investors in a research note. Management is expected to sound bullish on 2026 WFE, with KLA likely maintaining flat WFE share despite prior assumptions of share loss, UBS adds.

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Needham

Strong Buy

upgrade

2026-01-20

New

Reason

Needham

Price Target

2026-01-20

New

upgrade

Strong Buy

Reason

Needham raised the firm's price target on KLA Corp. to $1,800 from $1,350 and keeps a Strong Buy rating on the shares. Commentary from the Needham Growth Conference pointed to broad-based demand improvement over the past 90 days, supporting a bullish sector outlook, the analyst tells investors in a research note. Despite strong year-to-date performance, the direction for semicap remains positive, with Q4 earnings expected to deliver multiple catalysts, the firm says.

Cantor Fitzgerald

Overweight

maintain

2026-01-08

Reason

Cantor Fitzgerald

Price Target

2026-01-08

maintain

Overweight

Reason

Cantor Fitzgerald raised the firm's price target on KLA Corp. to $1,750 from $1,500 and keeps an Overweight rating on the shares. Despite recent outperformance, conviction remains high as rising wafer fabrication equipment through CY26-28 is expected to drive strong secular growth, supporting an "All-In" stance, the analyst tells investors in a research note. The overweight positioning in large-cap semiconductor capital equipment names is unchanged, reflecting confidence that the group remains in the early stages of the investment cycle, Cantor adds.

About KLAC

KLA Corporation is a supplier of process control and yield management solutions and services for the semiconductor and related electronics industries. The Company offers a portfolio of inspection and metrology products, and related services, software and other offerings, supports research and development (R&D) and manufacturing of integrated circuits (ICs), wafers and reticles. Its segments include Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection. Semiconductor Process Control segment provides comprehensive portfolio of inspection, metrology and software products, as well as related services, helping IC, wafer, reticle/mask and chemical/materials manufacturers achieve target yields throughout the entire fabrication process, from R&D to final volume production. The Specialty Semiconductor Process segment develops and sells advanced vacuum deposition and etch process tools, which are used by a range of specialty semiconductor customers.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.