** Bernstein initiates coverage on KLA Corp KLAC.O with 'outperform' rating and $1,700 PT, implying ~18% upside to stock's last close

** Brokerage says KLA should benefit as 'no.1 player,' with more than 57% market share in Process Control - critical semiconductor manufacturing segment

** Estimates share gains will likely continue due to strong competitive position and growth-favourable mix within Process Control subsegments

** Says Process Control should be more insulated than other wafer fabrication equipment segments from local Chinese rivals given its higher complexity, which limits substitution risk

** Brokerage adds that KLA has already factored China normalization into its CY26 outlook, helping to de-risk its China exposure for next year

** 16 of 30 brokerages recommend rating of "buy" or higher, 13 "hold" and one "sell"; stock has median PT of $1,369 - LSEG-compiled data

** KLAC rose 92.8% in 2025

(Reporting by Arnav Mishra in Bengaluru)

((Arnav.Mishra@thomsonreuters.com;))