March 12 (Reuters) - Chipmaking tool provider KLA Corp ( KLAC )

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.