Wednesday's IBD 50 Stocks To Watch pick, chip leader KLA, is at a new buy point, as it looks to add to its nearly 62% rebound since early April. That makes KLA stock one of the best to watch right now.
The company, based in Milpitas, Calif., makes tools for inspecting semiconductor wafers. Also, KLA makes technology that allows chipmakers to control etching and other production processes. In addition, the company has data-analysis software for chipmakers to spot production trends and cut down risk.
Oppenheimer analyst Edward Yang on Tuesday reiterated his outperform rating on KLA. He increased his price target on KLA stock to 950 from 740. Yang made the price-target hike after meeting with company officials to discuss the state of the semiconductor equipment market and their respective positions.
Earlier this month, JPMorgan reiterated its overweight rating and a 900 price target for KLA stock.
"(We) remain overweight on KLAC due to its dominance in process control, strong product cycles driving robust earnings growth, a premium profitability profile, and continued stock outperformance," JPMorgan Executive Director of Equity Research Harlan Sur said in a June 3 note to clients. Those elements "should result in continued steady (serviceable available market) and market share expansion," Sur said.
On April 30, KLA reported quarterly earnings that jumped 60% vs. the year-ago period. Revenue rose 30% to $3.06 billion. For the full 2025, the company's annual earnings are expected to grow 36% before slowing to 3% growth in 2026, according to IBD MarketSurge.
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KLA Stock Hits Buy Point
KLA stock is attempting to surpass an 896.32 buy point out of a consolidation that stretches back to July 2024. Investors also could have used an entry at 810.61 as a buy trigger. Shares edged higher early Wednesday.
KLA stock boasts a top-notch 99 IBD Composite Rating, according to IBD Stock Checkup. That makes the chip leader one of the best stocks to watch in the ongoing stock market rally.
With IBD's recommended equity exposure range of 80%-100%, investors have the flexibility to buy breakouts among top stocks.
The relative strength line is at its highest level since July 2024 following the stock's strong price gains in recent weeks. The RS line measures a stock's price performance vs. the S&P 500 and provides insight into a stock's market leadership status.
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Best Stocks To Watch
These three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to watch:
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Futu Holdings | 118.52 | Cup with handle | |
| Atour Lifestyle | 34.23 | Cup with handle | |
| Shopify | 112.38 | Cup with handle |
Source: IBD Data As Of June 18, 2025
Follow Scott Lehtonen on X, formerly known as Twitter, at @IBD_SLehtonen for more on the best stocks to buy and watch and the stock market.
