KLAC

When a hedge fund cuts its stock pickers on the same day AI chip shares crater, it's tempting to read a verdict on the businesses.

MILPITAS, Calif., Nov. 5, 2026 /PRNewswire/ -- The KLA Corporation (NASDAQ: KLAC) Board of Directors today declared a quarterly cash dividend of $0.23 per share on its common stock, payable on Dec. 1, 2026 to KLA shareholders of record as of the close of business on Nov. 16, 2026.

Microsoft was the largest contributor, with its shares up 37.8% for the quarter. KLA and Applied Materials were the largest detractors, falling 35.3% and 29.2%. On a relative basis, three of the largest detractors were companies we did not own: NVIDIA, Apple, and Meta, which rose 14.3%, 15.2%, and 28.8%. We made one change to the portfolio during the quarter, purchasing Garmin and selling Verisk, and rebalanced outliers back to approximately equal weights during the same trade window.

KLA delivered robust Q1 results, with 29% YoY revenue growth and accelerating business momentum driven by AI tailwinds. The company expanded both gross and operating margins, beat analyst expectations, and increased capital returns through higher buybacks and dividends. Guidance for Q2 is strong, projecting 43% YoY revenue growth and over 60% EPS growth, signaling continued demand and profitability.

KLA Corporation is rated Buy with a 12-month target price of $178.25, 16.4% above the recent close. KLAC's fundamentals are robust, with 1Q27 revenue up 28.9% YoY and a record 46.1% non-GAAP operating margin. Guidance for 2Q27 revenue midpoint is $4.70 billion, up 42.5% YoY and in line with consensus.

KLA sees accelerating AI-driven semiconductor demand, with the equipment market set to exceed $200 billion in 2027 as advanced packaging and memory fuel growth.

Semiconductor sales are poised to surge, driven by rising demand for chips across multiple applications. Nvidia, Broadcom, and Micron dominate their respective semiconductor niches, and they are trading attractively right now.

Class A shares of the Alger Growth & Income Fund underperformed the S&P 500 Index during the third quarter of 2026. Microsoft Corporation, Apple Inc., and Meta Platforms Inc were among the top contributors to performance. KLA Corporation, Corning Inc, and Broadcom Inc., were among the top detractors from performance.

KLA Corporation delivered strong Q1 results, beating EPS and revenue estimates and guiding above consensus for Q2 and beyond. KLAC is positioned for secular growth, driven by rising chip complexity and robust AI-related demand, supporting sustained revenue acceleration into 2027. Gross margin faces near-term pressure from higher memory costs, while elevated CapEx may temper free cash flow and shareholder yield in the short term.

Explore how KLA's (KLAC) revenue from international markets is changing and the resulting impact on Wall Street's predictions and the stock's prospects.