Citi Remains Bullish on KLA (KLAC) Amid Persistent Phase 2 Upcycle in Wafer Fab Equipment and Potential Upside

Core Viewpoint - KLA Corporation (NASDAQ:KLAC) is gaining attention from analysts due to its strong performance and positive outlook in the wafer fabrication equipment sector, with price targets being raised by multiple firms [2][4]. Group 1: Analyst Ratings and Price Targets - Citi increased its price target for KLA Corporation from $1,450 to $1,800 while maintaining a 'Buy' rating, reflecting confidence in the ongoing Phase 2 upcycle in wafer fab equipment [2]. - RBC Capital reiterated its 'Sector Perform' rating and raised its price target from $1,550 to $1,600, noting solid second-quarter performance despite a more conservative growth outlook compared to peers [4]. Group 2: Financial Performance - KLA Corporation reported non-GAAP net income of $1.17 billion, or $8.85 per diluted share, for the fiscal second quarter, indicating stability and year-over-year growth [5]. - The company achieved revenue of $3.30 billion, surpassing the midpoint of its guidance range of $3.225 billion +/- $150 million, driven by a differentiated product portfolio and effective execution [5]. Group 3: Future Outlook - For the third quarter, KLA Corporation anticipates revenue of $3.35 billion +/- $150 million and non-GAAP EPS of $9.08 +/- $0.78, supported by momentum from AI-related semiconductor investments [6]. - The company specializes in process control, inspection, metrology, and yield management systems, which are essential for advanced semiconductor manufacturing [6].