Can KLA Corporation (KLAC) Capture Its Share of a $250 Billion Global Chip Equipment Market?
Key takeaways
- Can KLA Corporation (KLAC) Capture Its Share of a $250 Billion Global Chip Equipment Market?
- The analyst noted that the target raise sits within BofA's thesis that the next $1 trillion in semiconductor industry revenues will be unlocked by factors that are already in play.
- Higgins also expects meaningful growth into 2027 as new chip factories under construction begin filling up with equipment.
Can KLA Corporation (KLAC) Capture Its Share of a $250 Billion Global Chip Equipment Market? Abdul Rahman Mon, June 29, 2026 at 6:58 PM GMT+7 2 min read KLAC BAC KLA Corporation (NASDAQ:KLAC) is one of the best growth stocks to buy according to billionaire Dan Loeb. On June 23, Bof A analyst Vivek Arya raised his price target on KLA Corporation (NASDAQ:KLAC) to $317 from $210, maintaining a Buy rating. The move was part of a broader upgrade of the semiconductor equipment sector, which the analyst said was driven by the bank's improved outlook for AI-related chip spending.
The analyst noted that the target raise sits within BofA's thesis that the next $1 trillion in semiconductor industry revenues will be unlocked by factors that are already in play. AI data center investment and surging WFE spending carry the majority of the weight of BofA's thesis. Altogether, the factors convinced Arya and his team of semiconductor industry analysts to push BofA's WFE forecast all the way to $250 billion by 2028.
KLA's own CFO Bren Higgins, told investors at the Bank of America Tech Conference on June 3 that the overall semiconductor equipment market for 2026 could end up somewhat larger than the $140 billion-plus the company had previously projected. Higgins also expects meaningful growth into 2027 as new chip factories under construction begin filling up with equipment. He added that KLA's long-term planning assumes a $215 billion WFE market by 2030, and that the current momentum will exceed prior forecasts.