Morgan Stanley Raises KLA Corp. Price Target 44% as AI Infrastructure Enters New Era

Morgan Stanley has raised its price target for KLA Corporation (NASDAQ:KLAC) to $274 from $190, maintaining an Equal Weight rating. This move follows similar revisions from Susquehanna and Cantor Fitzgerald, underscoring the transformative impact of AI infrastructure investments on the global semiconductor landscape.

■Susquehanna updated its model after channel checks, citing extended SCE backlog and WFE market potential reaching $300B, with revised forecasts for 2026-2028.

■Cantor Fitzgerald views the AI-driven semiconductor cycle as 'generational,' projecting industry revenues to hit $3T by CY29 and potentially $3.5T by CY30.

■KLA recently completed a 10-for-1 forward stock split, with adjusted trading commencing on June 12.

While analyst upgrades reflect optimism around semiconductor equipment demand, investors must weigh structural constraints in Asia-Pacific supply chains and evolving monetary policies. The trajectory of KLA and peers will hinge on sustained AI capital expenditure momentum and geopolitical risk mitigation in emerging markets.