KLA’s Record Revenue and Top 500 Volume Position Fuel Analyst Optimism Despite Daily Decline

On August 11, 2025, KLA Corporation (KLAC) closed at a 0.51% decline, trading with a daily volume of $0.75 billion. Recent earnings reports highlighted strong fiscal performance, with Q4 2025 revenue reaching $3.17 billion, surpassing estimates by $90 million. The company reported a 24% year-over-year revenue increase to $12.2 billion for the full fiscal year, driven by robust demand in semiconductor process control. Net income rose to $4.06 billion, with EPS of $30.53, reflecting a 47% growth compared to 2024.

Analysts responded positively, with UBS and Barclays raising KLAC’s price targets to $960, citing strong earnings momentum and guidance. The firm also announced a $5 billion share repurchase program, signaling confidence in its financial position. Despite a broader market decline amid global tariff concerns, KLAC’s results underscored its resilience in the AI-driven semiconductor sector. Earnings surprises in Q4, including a 9.96% EPS beat and 3.21% revenue outperformance, reinforced investor optimism.

Strategic liquidity-focused strategies have historically outperformed in volatile markets. A backtest of buying the top 500 stocks by daily volume and holding for one day returned 166.71% from 2022 to 2025, significantly exceeding the benchmark’s 29.18%. This highlights the potential for short-term gains in high-liquidity environments, particularly during periods of market divergence. KLA’s recent performance aligns with such dynamics, positioning it as a focal point in semiconductor sector rotations.