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AI Boom Quadruples Kioxia Profits
15 May
Summary
- Kioxia's net profit surged fourfold in the last quarter.
- Generative AI demand is driving massive interest in memory devices.
- Company revenue expected to jump 75% next quarter.
Flash storage producer Kioxia experienced a more than fourfold increase in net profit during its fourth quarter, reaching ¥409 billion ($2.6 billion). This impressive financial performance, reported on Friday, was primarily fueled by escalating demand from the generative AI sector.
The company's shares have seen a remarkable 20-fold increase, making it the top-performing stock on the MSCI World index last year. Kioxia anticipates further growth, projecting a 75% revenue jump in the quarter ending June.
Chief executive Hiroo Oota stated, "We are riding the large wave of AI demand." He added that as AI becomes a societal pillar, the flash memory market's strength is expected to persist.
Kioxia, formerly Toshiba Memory, is a specialist in Nand flash memory, crucial for storing data for AI models. The industry faced a downturn previously due to reduced consumer electronics demand post-pandemic.
The company predicts high teens growth for the Nand market this year and expects demand to outstrip supply in 2027, indicating a potentially lasting impact of AI on the memory market.
