KLA Corporation (KLAC) closed Friday's session with a significant 8.4% gain, reaching $1,442.95 per share. The surge positioned the company as a top performer among semiconductor equipment manufacturers, with trading volume for the day hitting approximately 1.6 million shares.
The broader chip sector experienced a strong rally, driven by Amazon's announcement of plans to increase its capital expenditures by more than 50% this year. This move, echoing similar long-term infrastructure investment strategies from other tech giants, fueled optimism for sustained demand in semiconductor manufacturing. The PHLX Semiconductor Index (SOX) closed up 5.7%.
In a separate corporate action, KLA's board declared a quarterly cash dividend of $1.90 per share. The dividend is scheduled for payment on March 3 to shareholders of record as of February 17.
Other major players in the chip equipment space also posted substantial gains. Applied Materials (AMAT) advanced roughly 6.1%, while Lam Research (LRCX) jumped about 8.2% by the market close.
Analysts noted that the rally reflects real demand for products powering artificial intelligence. However, some caution that the momentum could be tested by upcoming economic data, including U.S. jobs figures and the Consumer Price Index report, which may influence interest rate expectations and market rotations.
