JP Morgan: KLA Corporation (KLAC) Could Triple Earnings by 2030

JP Morgan forecasts that KLA Corporation (NASDAQ:KLAC) could more than triple its earnings by 2030, driven by rising demand for semiconductors and high-bandwidth memory (HBM4) technology.

Rating Change

On June 9, UBS analyst Timothy Arcuri raised the firm's price target on KLA from $1,770 to $2,180 while maintaining a Neutral rating. The new price target implies a mere 1.9% upside from the prior close.

Analyst Rationale

Analysts believe KLA benefits from its leading position in semiconductor wafer inspection equipment, especially as demand for HBM4 memory chips used in AI applications accelerates. Expanding customer base and increased capital spending on new fabs also support growth expectations.

Context

KLA is among the top 10 stocks in the HBM4 value chain favored by hedge funds. The stock has performed well over the past year, buoyed by a strong semiconductor sector.

Conclusion

Despite the optimistic long-term outlook, the current price target leaves little room for immediate upside, suggesting the market has already priced in some of the expected growth. Investors should monitor HBM4 demand trends and the company's investments in new technologies.