How KLA Stock Gained 80%
KLA (KLAC)’s stock soared nearly 80%, fueled by standout Q4 results and a surge in AI-driven demand, alongside semiconductor and advanced packaging gains. Coupled with shifting China policies and bullish analyst views, these forces sparked a powerful market rally—let’s unpack what really moved the needle.
| 11102024 | 11102025 | Change | |
|---|---|---|---|
| Stock Price ($) | 680.8 | 1,218.0 | 78.9% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 10,256.8 | 12,524.3 | 22.1% |
| Net Income Margin (%) | 28.9% | 33.8% | 17.0% |
| P/E Multiple | 30.8 | 37.9 | 23.0% |
| Shares Outstanding (Mil) | 134.1 | 131.8 | 1.8% |
| Cumulative Contribution | 78.8% |
So what is happening here? The stock surged 79%, driven by a 22% revenue boost, a 17% margin improvement, and a 23% rise in its P/E multiple. Let’s dive into the events behind these shifts.
Before we get into details of events that led to stock surge, here is what market wisdom says: A single stock can be risky, but there is a huge value to a broader, diversified approach we take with the Trefis High Quality Portfolio. Separately, consider what the long-term performance for your portfolio could be if you combined 10% commodities, 10% gold, and 2% crypto with equities.
Here Is Why KLA Stock Moved
- Strong Q4/FY25 Earnings: KLA beat Q4 FY25 EPS/revenue estimates and gave positive Q1 FY26 guidance.
- AI & Semiconductor Boom: Robust industry growth, especially due to AI chips, boosted demand for KLA’s process control.
- Advanced Packaging Growth: Advanced packaging solutions revenue exceeded $925M in 2025, up 70% year-over-year.
- China Export Curbs: US curbs led to a projected $500M impact on 2025 revenue; China sales down 20%.
- Analyst Sentiment: Mixed but generally positive analyst ratings; average price targets varied.
Our Current Assesment Of KLAC Stock
Opinion: We currently find KLAC stock relatively expensive. 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.
KLAC stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. 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.