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.