New York, Jan 21, 2026, 08:21 EST — Premarket
- KLA shares dropped 5.2% on Tuesday, ending a brief two-day rally.
- Deutsche Bank raised its price target ahead of next week’s earnings but maintained a Hold rating.
- Guidance and remarks on 2026 chip-equipment spending have investors on alert.
KLA Corporation shares drew attention ahead of Wednesday’s open, following a 5.3% drop to $1,486.18 in the prior session. Deutsche Bank, however, bumped up its price target to $1,560 while maintaining a Hold rating. 1
The fall came amid Wall Street’s sharp selloff Tuesday, triggered by President Donald Trump’s threat of new tariffs on several European nations, sparking fresh concerns about trade-related volatility. “I’m not at the point yet” where this “is going to precipitate a correction,” said Jamie Cox, managing partner at Harris Financial Group. This week’s heavy data calendar includes updates on U.S. GDP along with key inflation and activity figures. 2
KLA closed Tuesday roughly 6% below its recent 52-week peak of $1,581.34 hit on Jan. 16, with about 1.7 million shares changing hands—well above its 50-day average volume. The stock underperformed some other chip-sector names, including Applied Materials, which also slipped. 3
Needham raised its price target on KLA to $1,800 from $1,350, maintaining a Strong Buy rating. The firm highlighted conference remarks indicating a “broad-based demand improvement” in the past 90 days and anticipates several catalysts in upcoming results. 4
UBS lifted its price target to $1,635 from $1,260 but kept its Neutral rating intact. The firm projects fiscal second-quarter revenue near $3.3 billion and flagged a shipment catch-up linked to changes in a Commerce Department export-control rule. UBS also expects management to take a bullish stance on 2026 wafer fab equipment demand — the capital chipmakers invest in gear for chip production. 5
KLA provides inspection and measurement equipment that chipmakers rely on to detect defects and manage minuscule details on silicon wafers. Orders can drop sharply when chipmakers cut spending, but bounce back just as fast when production ramps up.
The next major event is coming up next week. KLA plans to report its fiscal second-quarter earnings on Thursday, Jan. 29, with results hitting after the market closes. A webcast will follow at 2 p.m. Pacific time. 6
Yet, the string of upward target revisions hasn’t shielded the stock from broader market upheavals. Any renewed tariff tensions—or a sharper risk-off shift that steers investors clear of pricey growth names—might keep the stock under strain, particularly if guidance proves tight.
Traders are weighing if Tuesday’s sharp sell-off was just a brief pullback following a strong rally, or if it signals a wider unwind in chip equipment stocks.
