New York, Jan 20, 2026, 19:13 EST — After-hours
- KLA shares dropped 5.2% in Tuesday’s regular trading, closing at $1,486.18
- The decline occurred amid a widespread selloff across U.S. markets, accompanied by unusually high volume
- Attention turns to KLA’s earnings report and outlook due Jan. 29
KLA Corp (KLAC.O) shares dropped 5.2% on Tuesday, then held steady in after-hours trading. The sharp decline put the chip-equipment maker behind some of its industry rivals.
KLA’s stock had been hitting new highs only days ago, making this drop significant as the company gears up to report quarterly results next week. In semiconductors, a slip this close to earnings can quickly shift investor positioning.
KLA, a major player in process-control equipment used to inspect and measure chips in production, is closely watched as a gauge of customer demand for advanced manufacturing. Attention now turns to its upcoming report on sales and profit margins.
Tuesday saw a rough session for U.S. stocks, with the S&P 500 dropping 2.06% and the Dow sliding 1.76%, per MarketWatch data. Applied Materials took a hit too, falling 2.68% that day.
KLA dipped to $1,484.53 during the session before closing at $1,486.18. Trading volume hit about 1.7 million shares, edging past its recent average, according to market data.
Even as the stock dipped, analyst notes rolled in. UBS’s Timothy Arcuri maintained a hold rating but raised his price target sharply—from $1,260 to $1,635, according to Futunn News.
Needham bumped its price target up to $1,800 from $1,350, maintaining a “Strong Buy” rating, TipRanks reported. TipRanks
KLA announced earlier this month it will release its fiscal second-quarter 2026 results on Jan. 29, after the U.S. market closes. A conference call is scheduled for 2 p.m. Pacific (5 p.m. Eastern).
KLA continues to flag uncertainty around policy and demand in China, a market it has identified as occasionally weaker.
Investors are keeping an eye on wafer-fab equipment—the gear behind chip production—after a solid rally pushed valuations to levels that could get tight if the market shifts.
The stock closed Tuesday roughly 6% under its 52-week peak from Jan. 16, despite a surge that brought it close to all-time highs earlier this month.
The regular trading day won’t resume until Jan. 21, leaving Jan. 29 as the next key date: KLA’s earnings report, and, crucially, its forecast for the upcoming quarter.
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