Barclays believes that KLA is emerging as a clear winner among semiconductor equipment stocks. The bank upgraded the wafer fab equipment maker to overweight from equal weight and hiked its price target to $1,200 from $750. That forecast implies that shares could rise 8%. KLA stock has surged 76% in 2025. Barclays analyst Tom O'Malley highlighted KLA as his top pick as artificial intelligence compute investments help boost the category. Headwinds from the Chinese market also appear to be more minimized for KLA versus its peers, he added. KLAC YTD mountain KLAC YTD chart "At this point, we think eyes will continue to turn towards the LT growth trajectory of these names, and we UG KLAC to OW as we consider it to be the best secular story in the group coupled with the lowest China risk profile

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