KLA (KLAC) Surges 4.35% on AI-Driven Semiconductor Rally: Is This the Start of a New Bull Run?

Summary
• KLA (KLAC) jumps 4.35% to $1,025.55, outperforming the S&P 500’s 0.8% gain
• AMD’s $6B OpenAI GPU deal sparks sector-wide optimism
• 52-week high of $1,155 looms as critical resistance
• Turnover rate of 0.38% hints at moderate institutional participation

Today’s 4.35% surge in KLA (KLAC) reflects a broader semiconductor sector rally fueled by AMD’s landmark OpenAI deal. The stock’s intraday range of $1,014.94 to $1,033.9 underscores aggressive buying pressure, with technical indicators suggesting a potential breakout from a long-term consolidation phase.

AI Infrastructure Deals Ignite Semiconductor Sector Optimism
KLA’s (KLAC) 4.35% rally aligns with a sector-wide surge triggered by AMD’s $6 billion OpenAI GPU agreement. The deal, which includes a warrant for up to 160 million AMD shares, has reinvigorated demand for AI infrastructure components. KLA, a key supplier of wafer inspection tools, benefits from increased capital expenditures in semiconductor manufacturing. This momentum follows a week of regulatory uncertainty around China export controls, with investors now pivoting to near-term AI-driven demand catalysts.

ASML Leads Semiconductor Sector as AI Demand Surges
ASML (ASML), the sector’s dominant player, surged 4.74% today, outpacing KLA’s 4.35% gain. Both stocks reflect the AI infrastructure boom, but ASML’s exposure to EUV lithography positions it to capture higher-margin growth. KLA’s 33.25 P/E ratio, while elevated, remains below ASML’s 42.1 P/E, suggesting relative value for investors seeking AI-driven growth with lower valuation risk.

Technical Indicators Signal Potential Rebound: ETFs and Strategic Entry Points
• 200-day average: $810.60 (well below current price)
• RSI: 36.40 (oversold territory)
• Bollinger Bands: Price near lower band ($967.97) suggests potential rebound
• MACD: -13.24 histogram indicates bearish momentum but diverging from price

Technical indicators suggest a short-term rebound is likely, with the 30-day MA ($1,008.48) acting as a key support. Aggressive investors may consider XLK (XLF) for sector exposure, while conservative buyers could target a breakout above $1,062.79 (30D support/resistance). The 200-day MA at $810.60 remains a critical long-term benchmark. With no options data available, focus remains on ETFs and core technical levels.

Backtest KLA Stock Performance
The backtest indicates that a simple “RSI-oversold, 1-day hold” rule has not been a profitable way to trade NVDA since 2022—returns were slightly negative and risk-adjusted performance was poor. This suggests that, on its own, the oversold signal does not provide a durable edge for this stock and timeframe; combining it with additional filters or a longer holding logic may be necessary.You can review the full statistics, trade distribution and equity-curve details in the interactive panel below.Feel free to explore the panel and let me know if you’d like to tweak parameters—e.g., adjusting the hold period, adding volume filters, or testing on other tickers.

AI-Driven Semiconductor Momentum Gathers Steam: Position for a Breakout
KLA’s (KLAC) 4.35% surge is part of a broader AI infrastructure rally, with ASML’s 4.74% gain underscoring sector strength. The stock’s proximity to the 200-day MA and oversold RSI suggest a potential reversal, but sustained momentum will require a break above $1,062.79. Investors should monitor AMD’s OpenAI deal execution and U.S. export policy updates. For now, the semiconductor sector’s AI-driven narrative remains intact—position for a breakout above key moving averages.