New York, January 16, 2026, 12:14 ET — Regular session
- KLA shares climbed roughly 1.6% by midday, building on Thursday’s strong rally.
- Traders highlight Taiwan Semiconductor’s capex outlook as the key indicator for chip-tool demand.
- KLA will report earnings and update guidance on Jan. 29.
KLA Corp shares gained on Friday, rising around 1.6% to $1,569.45 after hitting $1,591.49 earlier. The stock is extending a strong rally from Thursday, now up about $24.49 since the previous close.
Investors are zeroing in on Taiwan Semiconductor Manufacturing Co’s latest figures as a key gauge for 2026 equipment budgets. TSMC projects capital spending between $52 billion and $56 billion this year, with revenue expected to climb nearly 30% in U.S. dollar terms next year. CEO C.C. Wei cautioned that poor spending would be “a disaster for TSMC.” Ben Barringer, head of technology research at Quilter Cheviot, described the results as “a very positive start” to tech earnings. 1
KLA jumped 7.7% Thursday amid a bounce in chip-related shares, with Applied Materials also gaining solidly. The uptick came after TSMC reported better-than-expected earnings and raised its equipment spending forecast, driven by AI demand. 2
Chipmakers led gains on Friday, providing some stability after a volatile start to the year. The iShares Semiconductor ETF climbed 2.1%, Reuters reported. With U.S. markets closed Monday for Martin Luther King Jr. Day, the next full trading day arrives Tuesday. 3
RBC Capital jumped in with a new “Sector Perform” rating and set a $1,550 target, driven by analyst Srini Pajjuri’s take on structural growth in “process control intensity.” This reflects the growing demand to inspect and measure chips as designs shrink and get more complex. Still, Pajjuri flagged valuation as a major hurdle. 4
KLA’s inspection and metrology tools target defect detection in chipmaking, a niche that usually gains as customers move into cutting-edge manufacturing and advanced packaging. These moves can increase the number of process checks per wafer, though spending remains uneven and tied to budgets.
Traders are closely eyeing if TSMC’s upbeat forecast sparks similar optimism among other major buyers, particularly memory chipmakers and U.S. fabs, in the days ahead. The market remains jittery over signs that AI-driven orders might be accelerating demand timing instead of growing it overall.
The risk lies in capex cuts or customers postponing tool deliveries if end-demand weakens. And when a pricey stock stumbles on one missed guidance point, it can plunge quickly.
KLA plans to release its fiscal second-quarter results on Jan. 29 following the market close, with its earnings call set for 2 p.m. PT (5 p.m. ET). Investors will be watching closely for insights on order trends and demand outlook for 2026, which could move the stock. 5
