KLA Stock Surged 80%, Here’s Why

October 25th, 2025 by Trefis Team
KLAC: KLA logo
KLAC
KLA

KLA (KLAC)’s stock skyrocketed nearly 80%, fueled by robust revenue growth and soaring margins, as investors bet big on its AI-driven momentum and semiconductor prowess. Behind the surge lies a perfect storm of tech demand and market dominance—unpacking this reveals why the rally may be just beginning.

  10242024 10242025 Change
Stock Price ($) 659.8 1,182.8 79.3%
Change Contribution By LTM LTM
Total Revenues ($ Mil) 9,812.2 12,156.2 23.9%
Net Income Margin (%) 28.1% 33.4% 18.7%
P/E Multiple 32.1 38.5 19.7%
Shares Outstanding (Mil) 134.5 132.0 1.8%
Cumulative Contribution 79.2%

So what is happening here? The stock surged 79%, driven by a 24% rise in revenue, a 19% boost in net margin, and a 20% jump in valuation multiple. Let’s see how recent moves sparked these gains.

Before we get into details of events that led to stock surge, here is what market wisdom says: Single stock can be risky, but there is a huge value to a broader diversified approach. Strategic asset allocation and diversification helps you stay invested. Did you know investors who panicked out of the S&P in 2020 lost significant upside that followed? Trefis High Quality Portfolio and Empirical Asset Management’s asset allocation approach are designed to reduce volatility so you can stay the course.

Here Is Why KLA Stock Moved

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  • Strong Financial Results: KLA consistently exceeded Q1-Q4 FY25 revenue and EPS guidance. Q4 FY25 revenues were $3.175B, non-GAAP EPS $9.38.
  • AI/HPC Demand Surge: Insatiable demand for AI and High-Performance Computing drove semiconductor investments.
  • Process Control Dominance: KLA held 56% market share in process control, crucial for complex chip manufacturing.
  • Advanced Packaging Growth: Advanced packaging revenue expected to exceed $925M in 2025, up from $500M in 2024.
  • Semiconductor Market Exp: Global semiconductor equipment sales forecast to reach $125.5B in 2025, up 7.4%.

Our Current Assesment Of KLAC Stock

Opinion: We currently find KLAC stock attractive but volatile. Why so? Have a look at the full story. Read Buy or Sell KLAC Stock to see what drives our current opinion.

Risk: A good way to gauge risk with KLAC is to check its biggest dips during major market sell-offs. The stock fell about 73% in the Dot-Com crash and 75% in the Global Financial Crisis. Even in more recent events like the 2018 correction and Covid pandemic, it dropped over 30%. The inflation shock last year pushed it down around 40%. So, while KLAC has strong fundamentals, it’s clear that nothing is immune when markets really turn south.

Picking winners on a consistent basis is not an easy task – especially given the volatility associated with a single stock. Instead, the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.