KLA Corporation (NASDAQ:clutch) is one of the 13 Best Extremely Profitable Stocks to Invest Now.

On January 30, 2026, KLA Corporation (NASDAQ:KLAC) attracted increased attention from analysts when Citi raised its price target from $1,450 to $1,800 while reiterating a “Buy” rating. The analyst’s bullish stance comes amid a persistent Phase 2 increase in wafer fabrication equipment and a potential upside as investors’ focus continues on 2027.

According to Citi, KLA Corporation (NASDAQ:KLAC)’s commentary on wafer manufacturing equipment was largely in line with Lam Research’s. This bolstered analysts’ confidence in the durability of sector spending.

On the same day, RBC Capital reiterated its “Sector Perform” rating on KLA Corporation (NASDAQ:KLAC) and raised its target price from $1,550 to $1,600. While noting that management’s low-double-digit WFE growth outlook lagged Lam Research’s more optimistic expectations, the firm described KLA’s second-quarter performance as solid.

These analyst actions followed the release of the company’s fiscal second quarter results on January 29, 2026. The quarter reported non-GAAP net income of $1.17 billion, or $8.85 per diluted share, reflecting sequential stability and year-over-year growth. Meanwhile, its differentiated product portfolio and strong company execution helped KLA Corporation ( NASDAQ:KLAC ) post revenue of $3.3 billion, above the midpoint of the guidance range of $3.225 billion +/- $150 million.

For the third quarter, KLA Corporation (NASDAQ:KLAC) expects revenue of $3.35 billion +/- $150 million and non-GAAP EPS of $9.08 +/- $0.78. Management’s optimism reflects continued momentum driven by investment in AI-related semiconductors.

KLA Corporation (NASDAQ:KLAC) provides process control, inspection, metrology and performance management systems critical to advanced semiconductor manufacturing.

While we recognize KLAC’s potential as an investment, we believe certain AI stocks offer greater upside potential and less downside risk. If you’re looking for an extremely undervalued AI stock that will also benefit significantly from the Trump-era tariffs and onshoring trend, check out our free report on the best short-term AI stock.

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