KLA Surges 3.27% on $3.17B Revenue Beat and AI Momentum Outpaces Peers Despite 25.37% Volume Drop

KLA Corporation (KLAC) rose 3.27% on August 4, 2025, with a trading volume of $0.97 billion, marking a 25.37% decline from the previous day’s activity. The stock’s performance was driven by robust Q4 FY2025 earnings, with $3.17 billion in revenue exceeding estimates by 3.5% and net profit surging to $1.2 billion. Analysts highlighted the company’s leadership in AI-driven process control and its $5 billion stock buyback program as key catalysts for the rally.

The Semiconductor Process Control segment, contributing 90% of revenue, benefited from strong demand in foundry and logic manufacturing. Analyst upgrades, including Berenberg Bank’s $1,010 price target, reinforced investor confidence in KLAC’s growth trajectory. The stock’s movement to $914.37, near its 52-week high of $945.87, reflects its position as a bellwether in the AI and semiconductor equipment sector, outperforming peers amid sector-wide gains.

Technical indicators suggest short-term momentum, with the stock trading above key moving averages and RSI in oversold territory. Strategic entry points for investors include ETFs like XLK, leveraging sector rotation. However, caution is advised as the 52-week high and sector volatility remain critical levels to monitor for potential pullbacks or breakouts.

A backtest of KLAC’s performance following a 3% intraday surge showed positive outcomes: a 52.84% win rate over three days, 55.21% over ten days, and 61.83% over thirty days. This data underscores the stock’s tendency to deliver favorable short-to-medium-term returns post-rallies, aligning with its recent momentum.