KLA Corp's stock rises amid strong revenue growth expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 09 Jan 26
Source: WSJ
KLA Corp's stock increased by 5.11% as it crossed above the 5-day SMA, reflecting positive momentum in the semiconductor sector.
This surge is attributed to KLA's projected advanced packaging revenue exceeding $925 million by the end of 2025, representing nearly 70% year-over-year growth. The company's strong performance in the semiconductor equipment market, alongside Lam Research's record revenue growth, underscores a robust recovery in the sector, which is expected to enhance investor confidence.
The implications of this growth are significant, as KLA's commitment to returning over 85% of free cash flow to shareholders through dividends and stock buybacks demonstrates strong cash flow management and a focus on shareholder value.
Analyst Views on KLAC
Wall Street analysts forecast KLAC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for KLAC is 1393 USD with a low forecast of 1214 USD and a high forecast of 1750 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
14 Buy
6 Hold
0 Sell
Moderate Buy
Current: 1627.200
Low
1214
Averages
1393
High
1750
Current: 1627.200
Low
1214
Averages
1393
High
1750
About KLAC
KLA Corporation is a supplier of process control and yield management solutions and services for the semiconductor and related electronics industries. The Company offers a portfolio of inspection and metrology products, and related services, software and other offerings, supports research and development (R&D) and manufacturing of integrated circuits (ICs), wafers and reticles. Its segments include Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection. Semiconductor Process Control segment provides comprehensive portfolio of inspection, metrology and software products, as well as related services, helping IC, wafer, reticle/mask and chemical/materials manufacturers achieve target yields throughout the entire fabrication process, from R&D to final volume production. The Specialty Semiconductor Process segment develops and sells advanced vacuum deposition and etch process tools, which are used by a range of specialty semiconductor customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
