NEW YORK, Jan 17, 2026, 4:43 PM EST — Market closed
KLA Corp shares (KLAC.O) closed Friday at $1,567.82, marking a 1.48% gain following a 7.70% surge on Thursday. During the session, the stock hit a peak of $1,581.34.
The latest surge came as investors piled into chip-equipment stocks following Taiwan Semiconductor Manufacturing Co’s record profit report and its plan to spend $52 billion to $56 billion on capital expenditures in 2026. TSMC also projected revenue growth near 30% this year. CEO C.C. Wei admitted the company was “very nervous” about the hefty investment. Reuters
Semiconductor tool shares saw this as a clear demand boost. ASML’s market cap topped $500 billion on Thursday, with its Q4 earnings scheduled for Jan. 28, according to Reuters. “The market has underestimated again how large is the demand for AI,” said Han Dieperink, chief investment officer at Aureus, which holds ASML. Reuters
Morgan Stanley’s Shane Brett raised KLA to Overweight from Equal Weight, boosting the price target sharply to $1,697 from $1,214. The firm flagged memory as “a key AI bottleneck” and predicts a stronger emphasis on foundry capacity, which should push foundry capex higher. TipRanks
Wells Fargo’s Joseph Quatrochi bumped KLA’s rating to Overweight from Equal-Weight, pushing his price target up to $1,600 from $1,250, according to GuruFocus.
The broader market ended Friday almost unchanged, while chip stocks pushed higher: the Philadelphia semiconductor index climbed 1.2%, building on gains from Thursday, Reuters reported. U.S. markets will be closed Monday for Martin Luther King Jr. Day, leaving Tuesday’s reopening as the next key moment for the rally.
KLA specializes in process control, providing inspection and metrology tools to detect defects and measure features on wafers during chip production. This niche sees gains when customers ramp up advanced manufacturing, though the spending cycle can shift quickly.
KLA plans to report its fiscal second-quarter results on Thursday, Jan. 29. The earnings will be released after market close, followed by a webcast at 2 p.m. Pacific time. Investors can also expect a shareholder letter and earnings slides to accompany the announcement.
The rally hinges on several positives: increased fab spending, solid execution, and no fresh policy surprises. KLA has cautioned that U.S. export restrictions and trade frictions might cut sales to China by $300 million to $350 million across the next five quarters, Reuters reported earlier.
Investors are eyeing ASML’s January 28 earnings for fresh clues on tool demand before KLA steps up with its own results. KLA’s guidance on January 29, along with any news on China exposure, should drive the next leg in KLAC’s stock.
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