Valued at a market cap of $154.4 billion, KLA Corporation (KLAC) is a leading U.S.-based semiconductor equipment company that develops advanced process-control and yield-management systems used in chip manufacturing. Headquartered in Milpitas, California, KLA provides inspection, metrology, and defect-detection tools that help semiconductor producers improve efficiency, precision, and production yields across advanced technology nodes.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and KLAC fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the semiconductor equipment & materials industry. With around 15,000 employees and more than $12 billion in annual revenue, KLA plays a critical role in enabling high-performance chips used in industries ranging from AI and data centers to smartphones and automotive electronics.
This tech giant has dipped 8.5% from its 52-week high of $1,284.47, reached on Oct. 30. Shares of KLAC have gained 31.5% over the past three months, outperforming the SPDR S&P Semiconductor ETF (XSD), which has gained about 9.6% during the same time frame.
Moreover, in the longer term, KLAC has gained 86% over the past 52 weeks, outshining XSD’s 29.3% uptick over the same time period. Moreover, on a YTD basis, shares of KLAC are up 87.6%, outpacing XSD’s 32.1% rise.
To confirm its recent bullish trend, KLAC has been trading above its 50-day moving average since mid-September. Moreover, it is trading above its 200-day moving average since early May.
Shares of KLA Corporation rose 2.7% on Nov. 19 after analysts turned more bullish, led by Citigroup Inc.’s (C) major price-target hike to $1,450 from $1,060 following the company’s strong Q1 results, which included $3.21 billion in revenue, up about 13% year over year. Citi reaffirmed a “Buy” rating, and overall sentiment improved across Wall Street, with the stock’s consensus rating shifting to “Moderate Buy” over the past month, reflecting growing confidence in KLA’s performance and outlook.
KLAC has considerably outpaced its rival, Applied Materials, Inc. (AMAT), which declined 47.2% over the past 52 weeks and 55.1% on a YTD basis.
The stock has a consensus rating of "Moderate Buy” from the 26 analysts covering it, and the mean price target of $1,269.75 suggests an 8% premium to its current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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