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Barchart
Yiannis Zourmpanos

Analysts Say This 1 Lesser-Known Chip Stock Is a Top Buy for 2026. Should You Add It to Your Portfolios Here?

KLAC KLA Broadcom Jefferies Nvidia Semiconductor KLA Corporation

KLA Corporation (KLAC) is in the limelight yet again after Jefferies identified the chip equipment supplier as one of the top picks in the chip space for the year 2026, alongside industry stalwarts Nvidia (NVDA) and Broadcom (AVGO). This recommendation comes at a juncture where investor interest is rotating away from those with cyclical demand in the chip industry towards those with sustainable demand in AI infrastructure development.

KLAC stock's movement has been positive, breaking past the $1,220 level and rising close to the upper part of the 52-week range. Although the majority of the story regarding AI innovation surrounds GPUs and custom silicon, analysts are pointing to the not-so-visible but crucial firms propelling the innovation of chips. KLA Corporation fits the bill nearly to perfection.

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