Home / Business and Economy / Memory Chip Shortage Fuels Kioxia's Rise
Memory Chip Shortage Fuels Kioxia's Rise
15 May
Summary
- Kioxia plans US listing amid historic memory chip price surge.
- Company forecasts record operating profit driven by AI infrastructure demand.
- Shares up 300% this year, analysts project record profit by 2026.
Kioxia Holdings Corp. is preparing to list American depositary shares, capitalizing on a significant global memory chip shortage that has propelled prices to record levels. The company forecasts an operating profit of ¥1.3 trillion for the quarter ending in June, exceeding analyst estimates and following record earnings in the previous quarter.
This surge in demand is attributed to hyperscalers rapidly building AI infrastructure. Kioxia's stock has risen by approximately 300% year-to-date. Analysts predict the company could achieve an operating profit of ¥4.2 trillion in 2026, potentially surpassing Toyota Motor Corp. as Japan's largest profit generator.
Specializing in NAND flash memory, Kioxia's technological advantages include lower production costs, higher storage capacity, and faster read/write speeds compared to competitors. Investors are optimistic that NAND will be the next component to benefit significantly from the AI boom.
