KLA Corporation (KLAC) is a top pick in the chip space for 2026 alongside Nvidia and Broadcom, according to Jefferies. KLAC stock has shown positive movement, breaking $1,220 and aligning with trends favoring companies with sustainable demand in AI infrastructure. The company is a major supplier of process control solutions and has a market cap exceeding $150 billion.

KLAC’s strong financial performance includes a Q1 revenue of $3.21 billion, surpassing guidance, and robust operating cash flow. Valuation-wise, KLAC is seen at around 35 times trailing earnings and boasts high profitability metrics. The company is also a dividend payer. CEO Rick Wallace highlights the demand for inspection and process control solutions driven by advanced AI chip complexity.

KLAC’s Wall Street sentiment is positive, with a “Moderate Buy” rating and a mean price target of $1,295.17. The company is confident in its revenue growth compared to the semiconductor equipment market. Analysts believe KLAC offers leveraged exposure to AI, with a potential upside of 6%.

Read more at Yahoo Finance: Analysts Say This 1 Lesser-Known Chip Stock Is a Top Buy for 2026. Should You Add It to Your Portfolios Here?