KLA Corporation’s stock continues to ride the semiconductor and AI wave, but the debate over whether KLAC has simply run too far, too fast is getting louder.
On Friday, November 28, 2025, KLA stock closed around $1,175.47, up 1.41% on the day, extending a strong multi-session advance and leaving shares up more than 80% over the past year. [1]
Yet the move came on sharply lower trading volume and against a backdrop of mixed analyst messages: upbeat earnings and aggressive price-target hikes on one side, and increasingly vocal warnings about stretched valuation on the other. [2]
Here’s a detailed look at everything investors need to know about KLA stock as of November 28, 2025, based on the latest news, data, and commentary.
KLA Stock Today: Price, Volume and Performance Snapshot
- Closing price (Nov 28, 2025): $1,175.47
- Daily move: +1.41%
- Day’s range: roughly $1,151 – $1,176
- Volume: ~389,000 shares, well below recent daily volumes above 1.1 million shares. [3]
- 52‑week range: approximately $551 to $1,284, underscoring how far the stock has already run. [4]
An AI-generated but human‑edited note from AInvest highlighted that KLA’s share price climbed even as liquidity and participation thinned, flagging the combination of rising prices and falling volume as a potential caution signal. [5]
At the same time, broader markets finished the shortened Black Friday session higher, with chip makers among the leaders, helping to lift the entire semiconductor complex, including KLA. [6]
Earnings Backdrop: Strong Q1 FY26, Softer Share Price Response
Much of today’s discussion around KLAC still traces back to its fiscal Q1 2026 results, reported on October 29, 2025, for the quarter ended September 30:
- Revenue: about $3.21 billion, up ~13% year over year.
- GAAP diluted EPS:$8.47 vs. $7.01 a year ago.
- Non‑GAAP diluted EPS:$8.81, ahead of Wall Street expectations. [7]
Growth was driven by the core Semiconductor Process Control segment, which generated roughly $2.9 billion in revenue, with demand coming from both foundry/logic and memory customers. [8]
For the current quarter (Q2 FY26, ending Dec 31, 2025), KLA guided to:
- Revenue: about $3.225 billion ± $150 million
- GAAP diluted EPS:$8.46 ± $0.78 [9]
Despite that solid beat‑and‑raise profile, KLA shares slipped about 4.6% in the weeks after the earnings report, as investors digested how much of the good news was already priced in. Zacks highlighted this post‑earnings decline while maintaining a “Hold” rating, noting that the stock had previously enjoyed a massive run‑up into the print. [10]
November 28 News #1: Zacks Flags a Post‑Earnings Hangover
A new piece from Zacks (via Yahoo Finance) on November 28 asks the blunt question: “Why Is KLA (KLAC) Down 4.6% Since Last Earnings Report?” [11]
Key points from that analysis:
- KLA beat expectations on both revenue and EPS, but the share price lagged afterward, reflecting skepticism about how much further near‑term upside is available after a huge rally. [12]
- Zacks assigns KLA a Growth Score of “B” but a Value Score of “D”, capturing the tension between strong fundamentals and a rich valuation. [13]
- The stock keeps a Zacks Rank #3 (Hold), signaling expectations for market‑like performance rather than another leg of explosive outperformance in the near term. [14]
For growth‑oriented investors, the takeaway is that KLA still looks fundamentally attractive — but not cheap — after its recent gains.
November 28 News #2: Simply Wall St Says KLAC Looks Overvalued After an 82% Rally
The most pointed valuation critique today comes from Simply Wall St’s November 28 article, “Should You Reconsider KLA After an 82% Rally and Analyst Upgrades in 2025?” [15]
That piece highlights:
- Share performance: KLA is up 82.1% year‑to‑date and 80.7% over the last 12 months, even after a 6.2% pullback in the past month. [16]
- DCF valuation: Using analyst free‑cash‑flow forecasts, Simply Wall St estimates a fair value of ~$655.81 per share, implying the stock may be about 76.7% overvalued at current levels. [17]
- P/E vs “Fair Ratio”: KLA trades at roughly 35.9× earnings, while their model’s “Fair Ratio” suggests ~33.1× would be more appropriate. That gap leads them to an “Overvalued” conclusion. [18]
The article doesn’t deny KLA’s quality or growth prospects, but it argues that much of that story is already embedded in the share price, at least through the lens of their models.
November 28 News #3: Price Up, Volume Down, and a Split Message on Flows
The AInvest note published late on November 28 focuses squarely on today’s tape action: KLA shares closed 1.41% higher despite a sharp drop in trading volume, ranking only 110th in dollar volume among U.S. stocks that day. [19]
AInvest stitches together several recent developments:
- Earnings outperformance: reiterating that Q1 FY26 beat estimates but was followed by a 4.6% decline in the share price, mirroring the Zacks narrative. [20]
- Institutional buying vs. insider selling:
- Net message: Institutions appear comfortable adding at these levels, but insiders are trimming, and the market overall is cautious about how sustainable the recent gains will be.
This mixed flow picture fits neatly with the “great business, demanding valuation” narrative dominating today’s coverage.
Analyst Sentiment: Aggressive Price Targets but Not a Slam‑Dunk Buy
Looking beyond today’s articles, KLA’s recent analyst activity is a major part of why the stock is in the spotlight.
Barclays’ Upgrade: “Best Secular Story in the Group”
In October, Barclays upgraded KLA from Equal Weight to Overweight and boosted its price target from $750 to $1,200, calling the stock a top pick among semiconductor equipment makers. [23]
Their bullish case hinges on:
- KLA’s leadership in wafer fabrication equipment (WFE) and process control tools.
- Intensifying AI infrastructure spending that requires more advanced inspection and metrology equipment.
- KLA’s lower relative exposure to China versus some peers, which Barclays argues makes it better insulated from export‑control risks. [24]
Broader Street View: “Outperform” on Average, Upside Still Seen
MarketScreener’s consensus snapshot shows: [25]
- Mean analyst rating:Outperform
- Coverage: 28 analysts
- Average target price: about $1,287 per share, roughly 9.5% above the November 28 close.
- Price target range: several banks have recently lifted targets into the $1,200 – $1,400 band (including Goldman Sachs, Oppenheimer, Argus, TD Cowen and others).
However, not all of those analysts are screaming “buy.” The coverage skews toward a mix of Buy and Hold ratings, consistent with the idea that valuation, not fundamentals, is the sticking point. [26]
Competitive and Industry News: KLA’s Near‑Monopoly Gets a New Challenger
Another piece of fresh news on November 28 comes not from Wall Street, but from DigITIMES Asia, and it speaks to competition in one of KLA’s most lucrative niches.
The article reports that Cheng Mei Instrument Technology has delivered its first CoPoS (Chip on Package on Substrate) measurement and inspection tool to leading outsourced semiconductor packager ASE Group, with the explicit goal of challenging KLA’s near‑monopoly in this advanced‑packaging inspection market. [27]
While details beyond the headline are behind a paywall, the message is clear:
- KLA’s dominance in inspection and metrology tools is a major part of its investment appeal.
- New entrants targeting advanced packaging and CoPoS suggest that the company will have to continue investing heavily in R&D to defend its position.
Separately, a new market‑research release on the global semiconductor inspection and metrology equipment market lists KLA as one of the key players globally, underscoring the scale of its footprint in this category. [28]
Regulatory and Macro Backdrop: China Restrictions Still Loom Large
The regulatory backdrop remains an important risk factor for any semiconductor equipment supplier.
Recent months have seen the U.S. government tighten export rules and revoke certain waivers for chip‑making tools sold to Chinese fabs — a move that is widely expected to pressure U.S. equipment makers’ China sales, including companies like KLA. [29]
At the same time:
- Industry data show China continues to be a huge portion of global fab investment, even as export controls redirect some spending.
- MarketScreener estimates that KLA generates roughly one‑third of its sales from China, with significant exposure to Taiwan and Korea as well. [30]
- Analysts at Barclays and Investing.com still argue KLA is less exposed than some peers to the harshest effects of export rules, though not immune. [31]
Investors today are essentially weighing AI‑driven demand and secular complexity (which boosts the need for KLA’s tools) against geopolitical and regulatory friction that could cap growth in certain regions.
Cash Returns: Dividend, Buybacks and Balance Sheet Strength
KLA’s capital‑return strategy also features in several recent notes and is part of the bull case.
From its latest quarter and subsequent disclosures: [32]
- Free cash flow remains robust, with over $1.16 billion in operating cash flow in Q1 FY26 alone.
- KLA spent about $545 million on share repurchases during the quarter and $254 million on dividends.
- The company has a long‑running buyback program and continues to reduce share count gradually over time.
- On November 6, 2025, KLA declared a regular quarterly dividend of $1.90 per share, payable December 2, 2025 to shareholders of record as of November 17. At current prices, that translates into a dividend yield of roughly 0.6–0.7%. [33]
For investors who like “picks and shovels” plays on AI and advanced chips, this combination of strong free cash flow, buybacks and a steadily rising dividend is a key part of KLA’s appeal.
How Expensive Is KLA Stock Right Now?
Different sources frame the valuation question in different ways, but they’re all circling the same theme: KLA is a high‑quality business trading at a premium price.
A few numbers:
- Trailing P/E: around 35–36×, according to Simply Wall St’s analysis. [34]
- EBITDA: roughly $5.75 billion, with an EBITDA margin near 45%. [35]
- Market cap: around $160 billion by late October, up from roughly $93 billion in May 2025. [36]
- Consensus target: ~$1,287, implying single‑digit percentage upside from current levels, even after a wave of target hikes. [37]
On top of that, analysts at Simply Wall St estimate that the stock trades about 77% above their DCF‑based fair value, while still acknowledging that some bullish investor “Narratives” put fair value closer to the current price. [38]
In short: Wall Street generally likes the company, but isn’t unanimous about the stock at this price.
Bull vs. Bear Case After November 28, 2025
Bull Case: Why Investors Still Like KLAC
Supporters of KLA stock point to several factors:
- AI and advanced packaging tailwinds: Growth in AI data centers, high‑bandwidth memory and advanced packaging technologies drives demand for ever more precise inspection and metrology, a KLA specialty. [39]
- Dominant market position: KLA is repeatedly cited as a leader — sometimes near‑monopolist — in critical segments of process control and inspection equipment, which often makes its tools “must have” rather than “nice to have.” [40]
- Resilience to regulation (relatively speaking): Several analyses argue that, compared to some peers, KLA is less vulnerable to export‑control shocks, even though it still has meaningful China exposure. [41]
- Cash generation and shareholder returns: High margins, strong free cash flow, dividends and substantial buybacks all support the long‑term investment case. [42]
Bear Case: Why Others Are Cautious
Skeptics, including today’s Simply Wall St and Zacks articles, focus on:
- Valuation risk: The stock has more than doubled from early 2024 levels, and multiple models suggest it is fully valued or overvalued on a DCF or P/E‑relative basis. [43]
- Cyclicality: Historical drawdowns of 30–70% in prior downturns show that even best‑in‑class chip‑equipment names can fall hard when the cycle turns. [44]
- Regulatory overhang: Ongoing and potential future U.S.‑China export restrictions could compress growth or inject volatility, especially if rules tighten further or spread to additional tool categories. [45]
- Emerging competition: News like Cheng Mei’s CoPoS equipment delivery to ASE illustrates that niches once dominated by KLA are drawing new contenders, which could eventually pressure margins or share. [46]
Bottom Line: What November 28 Tells Us About KLA Stock
Taken together, the November 28, 2025 news flow paints a nuanced picture:
- Price action is still positive — KLA is making new highs again after a brief pullback, even as volume cools. [47]
- Fundamentals look strong: revenue and earnings are growing at a double‑digit clip, margins are high, and Q2 guidance is constructive. [48]
- Analysts broadly like the business and see modest further upside, but they’re increasingly split on whether the current price fairly reflects those strengths. [49]
- Risks — regulatory, cyclical and competitive — are not going away, and several commentators now emphasize valuation discipline rather than unqualified enthusiasm.
For investors tracking KLA Corporation (KLAC), today’s updates don’t offer a simple “buy” or “sell” answer. Instead, they sharpen the real question:
Do you believe the AI‑driven, process‑control story is strong enough — and long‑lasting enough — to justify paying a premium multiple for that growth, despite regulatory and cyclical risks?
As always, any decision about KLAC should be based on your own research, risk tolerance, time horizon and financial situation. This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities.
References
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