On July 13, KLA Corporation fell 3.03% overnight, trading at $224.0/share, with turnover of $3.58 million.

On the news front, the previously dominant buy chips, sell software crowded trade is showing signs of unwinding, with the Philadelphia Semiconductor Index having declined approximately 12% in July. The shift in AI narrative continues to weigh heavily on semiconductor equipment stocks. Within the sector, Applied Materials fell 3.78%, Lam Research declined 3.49%, Teradyne dropped 3.23%, and AXT Inc lost 4.2%, reflecting broad-based weakness across equipment names.

Morgan Stanley had previously raised its price target on KLA from $190 to $274, citing rising wafer fab equipment market projections reaching $202 billion in 2027 and $227 billion in 2028. However, short-term industry-level selling pressure continues to dominate price action, overriding the constructive longer-term outlook.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)