Stifel Forecasts 10-15% Increase in Wafer Equipment Spending in 2026, Benefiting Teradyne and Others
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Source: seekingalpha
- Spending Growth Forecast: Stifel anticipates wafer fabrication equipment spending to rise by 10-15% in 2026, translating to a $10B to $15B year-over-year increase, primarily driven by advanced foundry/logic and DRAM, indicating a robust industry recovery.
- AI Demand Impact: Analyst Brian Chin noted that AI demand has absorbed much of the idle advanced wafer, test, and packaging capacity across the industry, signaling positive indicators for future capacity expansion, particularly amid rapid memory pricing and margin growth.
- Upgraded Ratings: Stifel maintains a Buy rating on Teradyne, KLA, and Lam Research, raising Teradyne's price target from $225 to $270, KLA from $1,260 to $1,600, and Lam from $160 to $250, reflecting strong confidence in these companies.
- Market Share Expansion: Lam Research is expected to exceed wafer equipment growth again in 2026, with significant contributions from advanced foundry/logic, while KLA is poised to benefit from increased investments by Samsung and Intel in this area, further solidifying its market position.
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: 1543.030
Low
1214
Averages
1393
High
1750
Current: 1543.030
Low
1214
Averages
1393
High
1750
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.
