KLA Corporation approved a 10-for-1 stock split and raised its dividend, signaling confidence in AI-driven semiconductor demand—though valuation and tariff risks remain contested among investors.

What happened

In May 2026, KLA approved a 10-for-1 forward stock split, effective June 11, 2026, and increased its dividend to US$2.30 per share. The company also expanded its share buyback program to US$20,000 million（約3.2兆円）. These moves accompany KLA's growth narrative centered on semiconductor manufacturing tools for process control and advanced packaging.

Why it matters

KLA's investment case rests on deepening demand for its tools as semiconductor complexity and AI manufacturing grow. However, the company faces near-term risks: valuation is stretched relative to earnings, and tariffs plus China exposure could pressure margins and revenue as backlogs normalize. Cautious analysts assume earnings of about US$7.2 billion（約1.2兆円） by 2029 at a 36 times PE multiple—substantially lower than the upbeat AI-and-dividend story now framing the stock.

What to watch

KLA's own narrative projects $20.5 billion（約3.3兆円） in revenue and $8.6 billion（約1.4兆円） in earnings by 2029. The stock split and higher dividend do not change the underlying fundamentals; the key question is whether AI-driven orders will materialize and whether geopolitical and tariff headwinds will erode profitability.