KLA’s Growth Potential Driven by DRAM Market and 2026 Projections

Morgan Stanley analyst Shane Brett CFA has maintained their bullish stance on KLAC stock, giving a Buy rating on July 9.

Shane Brett CFA has given his Buy rating due to a combination of factors that highlight KLA’s potential for growth, particularly in the coming years. While the immediate earnings guidance for the September quarter may not serve as a significant catalyst, the focus is on the strength of the DRAM market in the second half of the year and the potential for upward revisions in 2026 estimates.
The analyst emphasizes the importance of DRAM as a key driver, noting that the market is likely to reward strength in this area, particularly with Hynix as a major customer. Although there are no immediate changes to the estimates, the potential for growth in DRAM and TSMC revenue, coupled with advanced packaging opportunities, supports a positive outlook for KLA’s stock. The anticipation of multiple growth drivers in 2026 further solidifies the Buy rating, as these factors could lead to significant gains in market share and revenue.

In another report released on July 9, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $1,066.00 price target.