Chipmaking tool provider KLA unveils additional $7 billion share buyback and dividend increase

Chipmaking tool provider KLA Corp on Thursday announced a new $7 billion stock buyback program and a 21% increase in its quarterly dividend, while reaffirming its forecast for the current quarter.

This buyback, with no specified timeframe, is ‌in ⁠addition to the ⁠company's existing share repurchase authorization, which stood at $3.94 billion as ​of December 31, 2025.

KLA's shares have risen more than 20% ​this year, after a nearly 93% jump last year, driven by relentless investment in data center infrastructure for ​artificial intelligence tech and the chips that ⁠power it.


Chipmakers ‌have ramped up orders for KLA's semiconductor fabrication tools used in manufacturing AI processors ⁠and memory chips, helping KLA beat Wall Street expectations for second-quarter revenue and profit in January.

The ​company said on Thursday it is raising its quarterly dividend to $2.30 per share from $1.90 per share.

Additionally, it maintained its forecast for the March quarter, with revenue expected at $3.35 billion, plus or minus $150 ‌million, and adjusted earnings per share of $9.08, plus or minus 78 cents.

KLA's products and services ​are "key enablers ​of the ⁠AI ecosystem and remain on track to continue to deliver sustainable market outperformance over the next several years," CEO Rick Wallace ​said in a statement.

The rapid build-out of AI infrastructure - a major driver for KLA - has absorbed much of the world's memory chip supply, boosting production capacity expansions and helping the company's sales.