Citi Raises KLA Corporation Price Target by 40% to $290 on $250B 2028 WFE Forecast
KLAC•Citi raised KLA Corporation’s price target to $290 from $206.40 based on calendar-year 2028 earnings power. The firm projects bull-case wafer fab equipment spending of $145 billion in 2026, $200 billion in 2027 and $250 billion in 2028, citing capacity constraints and surging AI-driven NAND demand.
1. Price Target Revision
Citi boosted KLA Corporation’s price target to $290 from $206.40, reflecting updated calendar-year 2028 earnings power. The revision aligns with a forward-rolled model that incorporates higher capital spending by hyperscalers and memory makers.
2. Bull-Case WFE Forecasts
The firm projects bull-case wafer fab equipment spending of $145 billion in 2026, $200 billion in 2027 and $250 billion in 2028. Growth assumptions underpinning these figures are 84% in 2026, 56% in 2027 and 38% in 2028, driven by capacity expansion at leading foundries.
3. AI-Driven NAND Demand
Emerging agentic AI applications are boosting NAND requirements as DRAM supply tightens, widening the gap between available memory and AI workloads. Closing this gap may require two to four new 150,000-wafers-per-month fabs, implying $15 billion to $30 billion in NAND-specific equipment spending.
