KLA Rises 0.87% on Strong Earnings Despite 75th-Place Trading Volume of $1.3 Billion

On August 1, 2025, KLA (KLAC) traded with a volume of $1.3 billion, a 35.48% decline from the prior day, ranking it 75th in market activity. The stock rose 0.87%, reflecting strong earnings momentum from its fiscal 2025 fourth-quarter results.

KLA reported non-GAAP earnings of $9.38 per share, surpassing estimates by 10% and rising 42.1% year-over-year. Total revenue hit $3.17 billion, up 23.6% annually, driven by a 24.7% growth in Semiconductor Process Control segment revenue to $2.88 billion. Foundry & Logic accounted for 69% of this segment, while Memory (split 75% DRAM and 25% NAND) contributed 31%. Free cash flow exceeded $1 billion for the first time, reaching $1.06 billion, with operating cash flow also setting a quarterly record.

Geopolitical risks, particularly U.S.-China export controls, impacted service revenue growth, which lagged below historical averages. Advanced packaging revenue reached $850 million annually, driven by demand for e-beam inspection tools and wafer-level packaging systems. Management highlighted persistent tariffs and regulatory pressures as near-term headwinds but maintained confidence in long-term demand from AI-driven semiconductor manufacturing.

For fiscal 2026’s first quarter, KLA projected revenue of $3.15 billion, with non-GAAP earnings of $8.53 per share. Guidance included a 62% gross margin and $615 million in operating expenses. The company also raised its advanced packaging revenue forecast for 2025 to $925 million, reflecting robust adoption in high-growth applications.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day delivered a 166.71% return from 2022 to the present, outperforming the benchmark return of 29.18% by 137.53%. This underscores the role of liquidity concentration in short-term stock performance, particularly in volatile markets. The outperformance highlights the effectiveness of leveraging high-volume stocks for capturing price volatility, though risks from abrupt market shifts remain significant.