New York, Jan 13, 2026, 20:54 EST — Market closed.
- TD Cowen raised its rating on KLA to “buy” and lifted the price target to $1,800.
- After the close, KLA shares changed hands at $1,441.82, marking a 0.9% gain from Tuesday’s finish.
- Investors are eyeing KLA’s earnings report on Jan. 29 for clues on demand and spending trends.
KLA Corp shares rose Tuesday following TD Cowen’s upgrade to “buy” and a boost to its price target, now $1,800, citing stronger spending in leading-edge foundries. After hours, the stock was last at $1,441.82, up 0.9% from the close. (Investing)
The call comes as investors wrestle with what’s next for semiconductor capital spending and who will be the first to gain. KLA operates in a niche of the tool chain that often gets accelerated when chipmakers chase higher-performance designs.
KLA sells inspection and metrology tools — metrology being the science of measurement — designed to help chipmakers spot defects and maintain steady yields. These tools are categorized as wafer fab equipment, or WFE, the term commonly used for machines involved in chip manufacturing.
“We are raising KLAC to Buy from Hold and lifting our price target to $1,800,” TD Cowen analyst Krish Sankar said in a note. (Seeking Alpha)
KLA’s upgrade is reverberating through the wider equipment sector, where such boosts often signal shifts in factory spending. Key players in this space include Applied Materials, Lam Research, and ASML.
The stock hit fresh highs this month. On Monday, KLA climbed 2.0% to close at $1,428.17, marking a new 52-week peak, according to MarketWatch data. (MarketWatch)
That said, these projections could quickly unravel if spending plans falter. Any slowdown in major foundry expansions, a halt in AI-related investments, or a steep drop in memory prices would challenge the optimistic outlook and weigh on tool orders.
With markets closed, the next update is near. KLA announced it will release its second-quarter fiscal 2026 results on Jan. 29, after the U.S. market wraps up. A webcast will follow at 2 p.m. PT. (KLA Corporation)
