New York, Feb 4, 2026, 12:54 EST — Regular session underway.
- KLA shares dropped roughly 4% by midday, deepening their recent multi-day slide.
- Applied Materials and Lam Research, both chip-equipment makers, also fall amid the broader tech sell-off.
- With U.S. labor and inflation data pushed back, investors are zeroing in on upcoming industry events for signs of demand.
KLA Corp (KLAC.O) shares dropped 4.4%, hitting $1,295.70 by midday Wednesday, deepening losses in chip-equipment stocks. So far, the stock has fluctuated between $1,294.65 and $1,375.89 during the session.
The stock slipped again after two straight drops this week, now off roughly 23% from its 52-week peak on Jan. 29. KLA finished Tuesday down 3.9% and lost 1.2% on Monday. (MarketWatch)
Why this matters now: chipmaking-tool stocks have started trading like high-beta tech once more, showing sharp moves as investors react to changing forecasts for 2026 fab capacity spending. KLA, a major supplier of process control equipment—the inspection and measurement gear that chipmakers rely on to boost yields and spot defects—often sees its shares swing in line with sentiment on cutting-edge production.
Wednesday’s decline coincided with turmoil across tech stocks. The S&P 500 and Nasdaq slipped, while the Dow inched higher. Investors remain unsettled by a selloff hitting software and cloud segments, alongside pressure on chipmakers after AMD warned of a drop in quarterly revenue. “We’re a bit bearish on software in general,” said Josh Chastant, portfolio manager at GuideStone Funds, citing concerns that AI could disrupt established business models. (Reuters)
KLA wasn’t the only one taking a hit. Applied Materials (AMAT.O) dropped 9.0%, Lam Research (LRCX.O) plunged 10.6%, and ASML (ASML.O) slipped 5.3% during the same session.
The pullback arrived despite some analysts maintaining a positive outlook following last week’s earnings. Citigroup’s Atif Malik held a “Buy” rating and bumped up his price target on KLA to $1,800, a report published Tuesday shows. (GuruFocus)
Last week, KLA topped Wall Street’s revenue and profit forecasts for the quarter, projecting March-quarter sales around $3.35 billion, plus or minus $150 million. Still, shares slipped after the announcement. Michael Ashley Schulman of Running Point Capital Advisors noted the stock “had already sprinted into the print,” cautioning that KLA’s outlook suggested “steady growth rather than renewed acceleration.” (Reuters)
Still, the risks linger. Post-earnings, some analysts flagged supply bottlenecks and extended lead times that could slow KLA’s shipment growth at the start of the year. UBS’s Timothy Arcuri noted that “during good times it can’t ramp as fast,” while Needham’s Charles Shi warned it’s “too early to call a race.” (Barron’s)
Macro factors have resurfaced for rate-sensitive tech stocks. The U.S. Bureau of Labor Statistics announced the delayed January employment report will drop next Wednesday, Feb. 11. Meanwhile, January’s CPI is now scheduled for Friday, Feb. 13, and the postponed JOLTS report will come out Thursday, Feb. 5. (Reuters)
KLA is set for a busy February with several industry events on its calendar, including SEMICON Korea from Feb. 11 to 13 and SPIE Advanced Lithography + Patterning running Feb. 22 to 26. These gatherings often draw attention from traders seeking hints on demand and delivery trends, particularly as customers finalize their capital spending plans for 2026. (KLA)
Tech’s tone this week has hinged on earnings and forward guidance, pushing major indexes mostly down in Wednesday’s trading. Investors now seek a fresh catalyst. For KLA, that probably comes down to whether upcoming macro data and mid-February industry reports can shore up risk appetite in chip tools. (Investopedia)
