With a market cap of $104.5 billion, KLA Corporation (KLAC) engages in the design, manufacture, and marketing of process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. Headquartered in Milpitas, California, the company operates through three segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection.

Shares of KLAC have underperformed the broader market over the past 52 weeks. KLAC stock has increased 1.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 9.8%. However, shares of KLAC are up 23.6% on a YTD basis, outpacing $SPX's marginal decline.

In addition, KLAC has outpaced Invesco Semiconductors ETF’s (PSI) 11.5% decline over the past 52 weeks and 10.1% fall in 2025.

KLAC stock rose 2.1% following the release of its Q1 earnings on Apr. 30. The company reported a total revenue figure of approximately $3 billion, which successfully beat the Street’s forecasts. Moreover, KLAC’s adjusted net income rose 2.1% year-over-year to $1.1 billion, and the company’s adjusted earnings came in at $8.41, which surpassed the consensus estimates by 4.3%.

For the fiscal year ending in June 2025, analysts expect KLAC's EPS to rise 36.4% year-over-year to $32.38. The company's earnings surprise history is impressive. It beat the consensus estimates in each of the last four quarters.

Among the 25 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 11 “Strong Buy” ratings, three “Moderate Buys,”  and 11 “Holds.”

The current consensus is less bullish than three months ago, when it had 14 “Strong Buy” suggestions.

On May 1, Morgan Stanley (MS) analyst Shane Brett maintained an “Overweight” rating for KLAC stock and lowered the price target from $870 to $868.

KLAC’s mean price target of $795.54 indicates a premium of 2.1% from the current market prices. While the Street-high target of $900 suggests a robust 15.5% upside potential.