KLA Lifts Calendar 2026 WFE Market Estimate to Low-$150 Billion Range

Camtek, the dominant player in advanced packaging inspection and metrology with about 60% market share, is positioning itself for strong growth as AI chip demand expands. In its most recent quarter, roughly 80% of orders were for advanced packaging inspection, driven by memory chip manufacturers transitioning to HBM4 chips and expanding production amid the memory shortage. Camtek's Q2 revenue rose 8% year over year to a record $133 million, and third-quarter revenue is expected to rise about 20% sequentially to around $159 million, with second-half revenue projected to grow 25% over the first half. CEO Rafi Amit said on the Q2 earnings call that the company's leading position in advanced packaging is expected to drive approximately 45% growth in that business in the second half of 2026 compared with the first half. The broader advanced packaging inspection industry is expected to grow at a compound annual rate of 11% over the next five years to $6.2 billion, up from $3.7 billion in 2026, and most orders coming in now will be executed in 2027. Camtek stock is up 25% year to date and 52% over the past 12 months, though it has fallen about 35% from its May peak, leaving its trailing P/E around 184 and its forward P/E at 27, with analysts holding a median price target of $190 per share.

Camtek is heading into its upcoming earnings report with analysts projecting earnings per share of US$0.98, up from the same quarter last year, after the stock closed its most recent session at US$138.59. The company has guided for Q3 2026 revenue of US$158 million to US$160 million, implying about 20 percent sequential growth, supported by large Hawk and Eagle G5 orders tied to AI and HBM applications. Camtek's narrative projects US$821.7 million in revenue and US$367.0 million in earnings by 2029, requiring 18.1 percent yearly revenue growth and roughly a US$319 million earnings increase from US$48.1 million today, with a fair value estimate of US$187.25, a 35 percent upside to the current price. The most cautious analysts assume revenue of about US$762 million and earnings near US$375 million by 2029, underscoring how sharply expectations can differ. The core risk remains that demand from a concentrated set of HPC and Asia based customers could prove more volatile than expected.

Bank of America raised its growth forecast for the US semiconductor industry, projecting an 18% compound annual growth rate between 2026 and 2030, up from its previous estimate of 14%. The bank attributed the revision primarily to higher expectations for memory chips and server-related components, and now forecasts the industry's total addressable market will reach $3.2 trillion by 2030, up from its previous estimate of $2.7 trillion. BofA said the industry took approximately 50 years to reach $1 trillion in sales but could double its current estimated market size of $1.7 trillion within four years, citing customer orders and capacity commitments across the data-centre and AI sectors. Separately, the bank raised its forecasts for the wafer fabrication equipment market, expecting spending to reach $156 billion in 2026, a 33% increase from the prior year, and $210 billion in 2027, representing projected annual growth of 34%, with the revisions reflecting higher expected spending on memory manufacturing equipment, particularly for DRAM production. BofA forecasts DRAM equipment spending of $61 billion in 2026 and $85 billion in 2027, and estimates the overall wafer fabrication equipment market could reach $360 billion by 2030, a compound annual growth rate of approximately 23% between 2026 and 2030.