Citi has placed KLA Corp on a 30-day positive catalyst watch ahead of the company's March 12 investor day in New York, signaling confidence in the semiconductor equipment maker's long-term prospects. Analyst Atif Malik expects the company to unveil an updated financial model targeting $24 billion in revenue and $68 per share in earnings by 2030, driven by rising process-control intensity in wafer fabrication.

Malik's analysis suggests KLA could benefit from a growing wafer-fab equipment market, with scenarios pointing to $140 billion in 2026-2027 and $200 billion by 2030. The bank views KLA as having the most upside among large-cap semiconductor stocks, with potential gains of 35% based on 2027 equipment spending forecasts. Despite recent underperformance due to weaker equipment outlook concerns, Citi maintains its buy rating.

The analyst emphasized that process-control intensity is becoming structurally larger and more stable, a trend expected to benefit KLA over coming years. Citi also anticipates KLA may introduce new advanced packaging products at the investor day event, potentially further strengthening its market position in semiconductor manufacturing equipment.