What Happened?

Shares of semiconductor manufacturing equipment maker KLA Corporation (NASDAQ: KLAC) jumped 4.6% in the afternoon session after the company was named a top pick for 2026 by Jefferies amid a broader rally in the chip sector. 

The positive sentiment came after the investment firm identified KLA alongside industry leaders Nvidia and Broadcom. The recommendation noted a shift in investor interest toward companies with sustainable demand from the build-out of AI infrastructure. KLA's stock also benefited from a wider rebound among chipmakers, which followed a strong forecast from memory-chip maker Micron Technology. Micron's upbeat outlook was driven by surging demand and supply shortages, which allowed the company to charge more for its products and lifted sentiment for peers like KLA and Applied Materials.

After the initial pop the shares cooled down to $1,225, up 4.5% 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 3 days ago when the stock gained 3.9% on the news that 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.

KLA Corporation is up 92.3% since the beginning of the year, and at $1,225 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 $4,671.

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