New York, Feb 5, 2026, 15:27 EST — Regular session
- KLA shares gained roughly 2.3% in afternoon trading, following a close at $1,307.22 the previous day
- ASE projected its advanced-packaging segment to double by 2026 and revealed plans for increased machinery investment
- An Argus note raised KLA’s target price to $1,750 but maintained its buy rating
KLA Corp shares climbed roughly 2.3% to $1,337.09 Thursday afternoon, recovering alongside other chip-tool stocks following a rough start to the week.
This move is crucial as investors look for clear evidence that chip-industry capital expenditures are holding steady, despite growing jitters about returns on AI-driven expansions. KLA provides inspection and metrology equipment that chipmakers rely on to detect defects and safeguard yields—a type of spending that often shifts when customers start cutting back.
ASE Technology in Taiwan projects its advanced packaging segment — where chips are linked or stacked for high-end processors — to hit $3.2 billion by 2026, doubling from current levels. CFO Joseph Tung emphasized the company’s continued push in capital expenditure, highlighting plans for an additional $1.5 billion in machinery investments this year.
Separately, Reuters revealed that an ASE unit bought machinery from KLA for T$1.14 billion.
KLA has been shedding ground recently. On Tuesday, the stock dropped 3.89%, ending the day at $1,355.54. That puts it nearly 20% below its 52-week peak of $1,693.35, which it reached on Jan. 29, according to a MarketWatch report.
The gains weren’t limited to one stock. Applied Materials climbed roughly 1.8%, Lam Research advanced close to 2.0%, and ASML ticked up about 0.8% during the session.
Big tech and the AI trade hit a rough patch. “The AI trade which was the accelerant last year is perhaps the extinguisher this year,” Melissa Brown, SimCorp’s managing director of investment decision research, told Reuters. Her comments came after Alphabet’s spending plans and Qualcomm’s forecast shook investors. MarketScreener UK
Argus raised its price target on KLA to $1,750 from $1,400, maintaining a buy rating, MT Newswires reported Wednesday.
That risk hasn’t disappeared. If customers hold off on ordering tools, or if the broader “risk-off” mood continues to drain cash from expensive tech stocks, KLA could lose its recent gains fast, even on days when semiconductor stocks try to hold steady.
Traders are gearing up for key macro data that could shift rate expectations. The U.S. Employment Situation report for January is set for Feb. 11, followed closely by January’s CPI on Feb. 13, per the Bureau of Labor Statistics schedule.
