New York, Jan 20, 2026, 12:20 EST — Regular session
KLA Corp (KLAC) shares dipped 2.5% to $1,528.19 during Tuesday’s session, hitting a low of $1,515.24 earlier in the day. The stock was trading $39.63 below its previous close.
The drop comes as investors wrestle with distinguishing company-specific momentum from a market that’s grown jittery again. KLA’s stock has been acting like a stand-in for confidence in chipmakers’ capital expenditures, and the weeks ahead will offer multiple tests of that sentiment.
Needham boosted its price target on KLA to $1,800 from $1,350 on Tuesday, maintaining a Strong Buy rating. The firm cited “broad-based demand improvement” over the last 90 days. It also flagged upcoming earnings as potential “multiple catalysts,” despite what it described as solid year-to-date gains. 1
UBS raised its price target on KLA to $1,635 from $1,260 but kept its Neutral rating. The bank is forecasting fiscal second-quarter revenue around $3.3 billion, with the following quarter at about $3.4 billion. UBS noted management is likely to maintain a bullish outlook on wafer-fab equipment in 2026 — the chipmaking gear companies buy when they’re expanding or upgrading their fabs. 2
The tape is proving tricky for bulls right now. Volatility spiked as investors dumped stocks and long-term Treasuries following fresh tariff threats, Reuters reported. The Cboe Volatility Index climbed to an eight-week peak. “We’ve certainly seen a meaningful reaction in the risk metrics… it’s a very significant shift,” Jim Carroll, senior wealth adviser and portfolio manager at Ballast Rock Private Wealth, told Reuters. 3
Risk-off shifts usually slam high-multiple chip stocks first, even if the broker reports are solid. Upgrades might end up being shrugged off instead of sparking buying interest.
KLA, a supplier of process-control and enabling tools for chip manufacturing, plans to release its fiscal second-quarter results Thursday, Jan. 29, after markets close. The company will hold a webcast at 2 p.m. PT to discuss the numbers, accompanied by a shareholder letter and slide presentation posted the same day. 4
Investors will zero in on familiar pressure points: order trends, gross margin control, and changes in customer priorities—whether they’re backing leading-edge logic, memory, or packaging first. In this report, guidance will carry more weight than earnings beats.
There’s a clear downside, though. If management turns cautious about short-term demand or customers delay deliveries, that recent premium on the stock could evaporate quickly—especially with tariff news making a comeback.
The next major event hits after the bell on Jan. 29, when the report will offer a fresh gauge on chip-tool demand heading into 2026. Traders will watch closely to see how much of today’s optimism is reflected in the guidance.
