What Happened?
Shares of semiconductor manufacturing equipment maker KLA Corporation (NASDAQ: KLAC) jumped 3.9% in the afternoon session after Jefferies upgraded the semiconductor company's stock to Buy from Hold and raised its price target.
The firm increased its price target on the shares to $1,500 from a previous target of $1,100, marking a significant 36% jump. This move signaled a more positive outlook for the company. The sentiment was echoed by other analysts. TD Cowen also raised its price target for KLA to $1,300 from $900. Similarly, Stifel increased its price target to $1,260 while maintaining its Buy rating, pointing to the company's fiscal first-quarter earnings that surpassed expectations. These actions reflected a strong growth outlook for KLA.
After the initial pop the shares cooled down to $1,236, up 3.3% from previous close.
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What Is The Market Telling Us
KLA Corporation’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 21 days ago when the stock gained 3.7% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday.
The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector, lifting shares of Broadcom, Micron, and Palantir significantly. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
KLA Corporation is up 94.2% since the beginning of the year, and at $1,236 per share, it is trading close to its 52-week high of $1,246 from December 2025. Investors who bought $1,000 worth of KLA Corporation’s shares 5 years ago would now be looking at an investment worth $4,737.
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