Should I Buy KLAC? KLAC 2026 Analysis

Should You Buy KLA Corp (KLAC) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

1669.840

1 Day change

2.62%

52 Week Range

1671.470

Analysis Updated At

2026/01/26

KLA Corp (KLAC) is a strong buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's robust financial performance, bullish technical indicators, positive analyst sentiment, and strong industry outlook make it a compelling investment opportunity despite minor short-term risks.

Technical Analysis

The technical indicators for KLAC are bullish. The MACD histogram is positive and contracting, RSI is neutral at 62.52, and moving averages (SMA_5 > SMA_20 > SMA_200) are aligned bullishly. The stock is trading above its pivot point of 1466.988, with resistance levels at 1560.708 and 1618.608, indicating potential upside.

Options Data

Bearish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

Technical Summary

Sell

Buy

Positive Catalysts

Strong financial performance in Q1 2026 with revenue up 12.96% YoY, net income up 18.52% YoY, and EPS up 20.83% YoY.
Positive analyst sentiment with multiple price target upgrades (e.g., Needham raised to $1,800 with a Strong Buy rating).
Industry growth driven by semiconductor demand, supported by TSMC's $52-$56 billion capex announcement for
Bullish outlook for wafer fabrication equipment (WFE) and AI-related infrastructure spending.

Neutral/Negative Catalysts

Hedge funds and insiders are selling, with hedge fund selling up 242.07% and insider selling up 148.90%.
Broader market concerns due to geopolitical risks, such as President Trump's tariff threats, which could affect investor sentiment.
Short-term stock trend analysis suggests a potential -0.98% dip in the next day and -3.09% in the next month.

Financial Performance

KLA Corp's Q1 2026 financials show strong growth: revenue increased by 12.96% YoY to $3.21 billion, net income rose by 18.52% YoY to $1.12 billion, EPS grew by 20.83% YoY to 8.47, and gross margin improved slightly to 61.27%. These metrics indicate solid operational performance and profitability.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analyst sentiment is highly positive, with multiple firms raising price targets significantly. Notable upgrades include Needham ($1,800, Strong Buy), Cantor Fitzgerald ($1,750, Overweight), and UBS ($1,635, Neutral). Analysts highlight strong demand for semiconductor equipment, KLA's leadership in wafer inspection tools, and bullish industry trends as key drivers.

20 Analyst Rating

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.

14 Buy

6 Hold

0 Sell

Moderate Buy

Current: 1627.200

Low

1214

Averages

1393

High

1750

Current: 1627.200

Low

1214

Averages

1393

High

1750

Deutsche Bank

Hold

upgrade

AI Analysis

2026-01-21

Reason

Deutsche Bank

Price Target

AI Analysis

2026-01-21

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

Reason

UBS

Price Target

2026-01-20

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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KLAC Should I Buy

KLAC Should I Buy

Should You Buy KLA Corp (KLAC) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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