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KLA Corporation’s stock reached an all-time high, touching 932.0 USD. This milestone marks a significant achievement for the semiconductor equipment and services provider, reflecting investor confidence and strong market performance. According to InvestingPro data, the company boasts a perfect Piotroski Score of 9, indicating exceptional financial strength, while maintaining a healthy current ratio of 2.54. Over the past year, KLA Corporation has experienced a 9.09% increase in its stock value, with particularly strong momentum showing a 35.8% gain over the past six months. The company’s robust financial performance, including a 60.6% gross profit margin and 21 consecutive years of dividend payments, has contributed to this upward trajectory. As a prominent player in the semiconductor industry, KLA currently appears slightly overvalued according to InvestingPro’s Fair Value analysis, with 14 additional ProTips available for subscribers.
In other recent news, KLA Corporation reported its first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $8.41 compared to a forecast of $8.07. The company also exceeded revenue projections, posting $3.06 billion against the anticipated $3.01 billion. Despite these strong results, KLA’s stock experienced a decline in aftermarket trading, as investors responded to future guidance and market conditions. In addition to the earnings report, KLA announced a new $5 billion share repurchase authorization, highlighting its commitment to returning capital to shareholders.
Analyst actions have been varied, with JPMorgan maintaining an Overweight rating and a $900 price target on KLA, citing strong wafer front end equipment sales and increased demand for process control systems. Conversely, Stifel raised its price target to $770 but maintained a Sell rating, reflecting concerns despite the company’s consistent performance. Cantor Fitzgerald reaffirmed a Neutral rating with an $800 price target, noting KLA’s strong results and an upbeat forecast.
KLA’s recent 10Q filing revealed remaining performance obligations at $8.9 billion, with 72.5% expected to convert into revenue over the next 12 months. Taiwan Semiconductor Manufacturing Company (TSMC) remains a significant customer, contributing 23% of KLA’s March quarter revenue. The company also reported improvements in gross margins across its business segments, supporting a strong gross margin guidance of 62.5% for the second half of 2025, despite anticipated tariff impacts.
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