New York, January 14, 2026, 13:36 EST — Regular session
- KLA shares slipped roughly 1.7% in early afternoon trading, dragged down by a wider slump in chip stocks.
- Bernstein SocGen kicked off coverage with an Outperform rating, TD Cowen upgraded the stock, and Stifel raised its price target.
- Attention turns to KLA’s earnings on Jan. 29, with a close watch on its 2026 spending plans for advanced chip manufacturing.
KLA Corp shares dipped Wednesday despite a string of positive analyst notes, as investors stepped away from semiconductor equipment stocks during a weaker session. The stock fell 1.7% to $1,417.18 in early afternoon trading.
Timing is key. KLA has turned into a popular pick for those betting on increased spending in advanced chips, where inspection and measurement gear grow in importance as designs shrink and defects become pricier.
The pullback mirrored weakness across the broader market, as investors digested bank earnings alongside new policy jitters. “Banks have had a very strong start to the year and markets are taking a little time to digest,” said Jake Johnston, deputy CIO at Advisors Asset Management. 1
Peers in the chip-tool sector also slipped. Applied Materials dropped roughly 2.0%, Lam Research fell 2.7%, and ASML’s U.S.-listed shares declined by about 0.5%.
Bernstein SocGen analyst Stacy Rasgon kicked off coverage with an Outperform rating and set a $1,700 price target. Rasgon acknowledged the valuation is “admittedly elevated” but argued that “a premium valuation to peers is warranted.” 2
TD Cowen’s Krish Sankar bumped KLA to Buy from Hold, raising his price target sharply to $1,800 from $1,300. He argued that consensus forecasts assume flat market share, but his model sees KLA’s share climbing from 8.3% in 2025 up to 9.5% by 2027. 3
Stifel bumped up its price target on KLA to $1,600 from $1,260, maintaining a Buy rating. The firm highlighted KLA’s strong foothold in inspection and metrology—critical precision tools for chip manufacturing—and noted that process control budgets tend to hold firm during shifts to advanced “node” technologies. 4
KLA reached a 52-week high Monday, climbing roughly 2% that day, according to MarketWatch data. Since then, the stock has fluctuated, with traders quick to sell into rallies when chip shares stall. 5
Process control isn’t flashy, yet it sticks around. These systems spot wafer defects and gauge minuscule features, helping chipmakers hold onto yields—the percentage of good chips—even as complexity rises.
Still, the upside is tempered by well-known risks. KLA has flagged that ongoing U.S.-China trade tensions and export restrictions might slash sales by roughly $300 million to $350 million across the next five quarters. 6
TD Cowen highlighted a few key near-term indicators for the theme: updates on TSMC’s capital expenditure plans, Intel’s foundry business progress, and if AI features will push demand for more advanced silicon. 7
KLA will release its fiscal second-quarter results on Jan. 29, after the market closes, the company announced. An earnings call is set for 2 p.m. PT that day. 8
