KLA Corp, a leading chipmaking tool provider, announced a new $7 billion stock buyback program and a 21% increase in its quarterly dividend. The company also reaffirmed its financial forecast for the current quarter.
This substantial buyback program is in addition to KLA's existing authorization. The company's stock performance has surged over the past year, fueled by robust investment in artificial intelligence data center infrastructure and the semiconductors powering it.
Chip manufacturers are increasing orders for KLA's semiconductor fabrication tools, which are essential for producing AI processors and memory chips. This demand contributed to KLA surpassing Wall Street expectations for revenue and profit in its second quarter.
The quarterly dividend will increase to $2.30 per share from $1.90. KLA maintained its forecast for the March quarter, expecting revenue between $3.35 billion and $3.50 billion, with adjusted earnings per share around $9.08.
CEO Rick Wallace stated that KLA's products are crucial for the AI ecosystem and are positioned for sustained market outperformance. The rapid expansion of AI infrastructure continues to drive demand for KLA's solutions, boosting the company's sales.