Kioxia Holdings Corporation

Applied Materials has entered a major R&D partnership with KIOXIA focused on next generation memory for AI workloads, based at Applied Materials' new US$5b EPIC Center. The collaboration targets memory cell structures, multi chip stacking and advanced packaging, with both companies working to improve manufacturability and density of future memory technologies tailored for AI focused chip architectures. The EPIC Center alliance with KIOXIA is only one piece of what is changing around Applied Materials' AI memory ambitions. Applied Materials builds the tools, software, and services that chipmakers use to manufacture semiconductors at scale, and the KIOXIA partnership plugs directly into its role supplying core production gear for memory and AI focused devices across the US, Asia, and Europe. A key data point to monitor is how quickly EPIC Center projects with KIOXIA convert into production tools and service contracts once the facility becomes operational this year.

Japanese stocks look set to catch up with a global AI-led rally when trading resumes Thursday, with Nikkei 225 futures in Osaka trading about 1.4% above Friday's settlement of the underlying gauge after the Silver Week holiday. Chip-equipment makers Tokyo Electron and Advantest are expected to be among the biggest winners, according to Hu You, a senior research analyst at iFast Financial in Singapore, who also flagged chip package substrate maker Ibiden and memory maker Kioxia Holdings. The yen traded around 157.28 per dollar in Tokyo after a four-day losing streak, its longest since late August, keeping traders alert to intervention risk following the Bank of Japan's Friday rate hike and its signal that further tightening remains possible. The BOJ move, which disappointed yen traders for its lack of clearer guidance, also leaves bond traders facing a volatile reopen, with iFast's Hu You saying the hike sets a higher floor for short-term rates and is fundamentally negative for front-end JGB prices. The global AI trade has gathered steam on early signs of success for Meta Platforms' new AI agent and Alibaba Group Holding's unveiling of what it calls China's most powerful AI chip, though overnight weakness in US equities and rising oil prices may temper the optimism.

At Tokyo Game Show 2026, which opened on the 17th, companies from outside the gaming industry are drawing attention with their first-ever exhibits, including Sanrio, which announced in April that it was making a full-scale entry into the gaming business, and major semiconductor maker Kioxia. Sanrio is developing games that make use of the world of its popular characters, and unveiled titles including Sanrio Party Land, scheduled for release in October as its first offering, while Hello Kitty appeared on stage to entertain visitors. Senior Managing Executive Officer Kosuke Hamazaki said, "We want even people who don't play games much to give them a try." Commercial kitchen equipment maker Nakanishi Manufacturing exhibited for the first time a game set in a cafeteria in another world, and many companies took on the challenge, with PARCO showing three indie titles that can be developed on a low budget and Toei also setting up a booth where visitors can try three titles before their release. Kioxia displayed high-speed storage devices for game consoles of the kind also used in international esports competitions, while Mizuno introduced its latest game controllers and high-performance gaming chairs. Atsuo Nakayama, a specially appointed professor at Nihon University who is well versed in the entertainment industry, said, "Games can keep users engaged for a long time, so every industry is always looking to move in. The market is expanding, and there is still room to enter."

Bloomberg News reported on the 14th, citing people familiar with the matter, that semiconductor maker Kioxia Holdings is considering raising at least $10 billion through a listing of American Depositary Receipts. The listing could take place next year. According to Bloomberg, Kioxia is in talks with financial institutions including Bank of America, Goldman Sachs and JPMorgan for the listing, and aims to boost liquidity in the U.S. market through an ADR listing after conducting a share buyback worth several billion dollars in Japan. The ADR issuance could also lead to inclusion in semiconductor-related stock indices. The ADR plan is preliminary at this stage, and details such as the size of the share sale and the lineup of underwriters may change. Reuters could not independently confirm the report. In May, Kioxia said it was preparing an ADR listing to broaden its investor base.

Sebastian Thomas, lead portfolio manager at US-based Voya Investment Management, which runs a $14 billion fund focused on artificial intelligence, said in an interview with Reuters that while Japanese companies offer many attractive AI-related stocks, liquidity is the biggest obstacle for large funds looking to invest. Of the roughly $14 billion in assets under management in his Global AI Strategy, about $5 billion comes from Japanese investor money, but the fund currently holds no Japanese companies. He expressed hope that semiconductor memory giant Kioxia Holdings could become more attractive as an investment target if it achieves a US listing, and said that if Kioxia shares become tradable in the US market, it could affect his investment decisions. Kioxia announced in May that it is preparing to list American Depositary Shares in the United States to broaden its investor base. Thomas cited the example of South Korean semiconductor giant SK Hynix, whose US market liquidity increased after its Nasdaq listing in July, and explained that ADSs often have higher liquidity than shares in their home market. The fund has partnered with Sumitomo Mitsui DS Asset Management and marks its 10th anniversary this month, with cumulative returns of about 600% since inception.

Kioxia Holdings Corp.'s chief executive dismissed the possibility of deeper ties with rival and stakeholder SK Hynix Inc., while pledging to keep surging memory prices in check to protect long-term AI demand. CEO Hiroo Ota said that closer collaboration with SK Hynix would face antitrust hurdles and conflict with Kioxia's joint manufacturing with Sandisk Corp., and that no talks are underway. He instructed sales teams not to push for substantially higher prices from data center operators, noting that prices have already risen enough and that further hikes could hurt the market. Kioxia and Sandisk together plan more than ¥5 trillion ($33 billion) in spending to expand capacity at their jointly owned facilities in Japan, while SK Hynix plans a 54 trillion won ($40 billion) expansion in Korea. Kioxia's average NAND price rose 70% in the June quarter after more than doubling the prior quarter, and analysts expect operating profit to climb more than nine-fold in the year to March.

Kioxia Holdings held a briefing in Tokyo on the 3rd to showcase its latest products. Makoto Hamada, head of the technical division for the SSD business, said, "The wave of infrastructure building driven by generative AI is now underway, and this change is a once-in-a-lifetime transformation." Hamada noted that the spread of generative AI brings new demands and business opportunities for flash memory and SSDs, and revealed plans to develop in close collaboration with U.S. chip giant Nvidia. He also mentioned having daily conversations with key players at Nvidia and expressed interest in storage requirements for AI-powered PCs and physical AI. Regarding reports that SK Group Chairman Chey Tae-won said joint production with Kioxia is an option, Hamada said he could not comment. The event showcased 10th-generation 3D flash memory products (BiCS FLASH) and ultra-fast SSDs for AI infrastructure.

Japanese companies are performing well in the Indxx Climate Change Index, which is composed of stocks that contribute to global warming countermeasures. Four of the top 10 gainers year-to-date are Japanese companies, with battery maker GS Yuasa up 41%, water treatment company Kurita Water Industries up 26%, and waste incinerator and water treatment firm Takuma and power semiconductor maker Sanken Electric both up 23%, far outpacing the index's 5% gain. During the same period, the Tokyo Stock Price Index (TOPIX) rose 23%. The generative AI boom has led to the development of large-scale data centers, which increases power consumption and heat generation, drawing investor attention to cutting-edge semiconductor manufacturing, energy storage, and cooling technologies. Oscar Young of Impax Asset Management, which specializes in sustainable investment, noted that if large-scale semiconductor plant investment continues in Japan, the beneficiaries would be semiconductor materials and manufacturing equipment makers, water treatment, and power management companies. According to Ministry of Internal Affairs and Communications data, ICT sector power demand in 2040 is expected to be up to 27 times that of 2020, highlighting the growing importance of energy efficiency and cooling. Kioxia Holdings will invest 5 trillion yen in Japan over the next six years with U.S. partner SanDisk, and South Korea's SK Hynix is also considering building a plant in Japan. A Japan Development Bank survey shows that major companies' domestic capital investment plans for fiscal 2026 are expected to rise 19.7%. Meanwhile, caution is emerging, with New York State halting new data center development for one year. The Nikkei semiconductor stock index has plunged 27% this quarter, but Tiemo Lang of Polar Capital believes the acceleration trend in AI investment will continue and that the correction is unlikely to cloud the outlook for environmental infrastructure companies.

SanDisk and Japanese partner Kioxia announced this week a joint investment of more than $31 billion over six years to expand NAND flash capacity in Japan, including roughly $11.3 billion for a new facility at Kioxia's Kitakami plant to produce jointly developed tenth-generation BiCS Flash. The plan, which relies on Japanese government support, is a proposal at this stage, and SanDisk's share of the investment has not been disclosed. CEO David Goeckeler highlighted that the company now has over four years of revenue visibility, backed by $16.5 billion in customer financial guarantees, with remaining performance obligations reaching $91.1 billion including two agreements signed after quarter-end. SanDisk shares closed at $1,484.98 on Friday, up 525.57% year to date, after fiscal fourth-quarter revenue surged 371.59% to $8.96 billion with non-GAAP EPS of $39.25.

Kioxia Holdings (285A), whose predecessor was Toshiba's memory business, has revealed in its securities report that Toshiba remains its top shareholder. The company was renamed Kioxia in 2019 and listed on the Tokyo Stock Exchange Prime Market in December 2024. As of the fiscal year ending March 2026, Toshiba holds 17.59%, and four Pangea-related entities under Bain Capital hold just over 20%. A year ago, Toshiba held 30.5% and Pangea-related entities held over 50%, showing a significant change in capital structure over the past year. The equity ratio is 37.9%, below the industry median of 62.2%, while ROE is high at 51.9%. The stock price has risen 37% in the past month, closing at 52,500 yen on August 27, with a PBR of 11.97 times.

Kioxia, a major semiconductor memory maker, announced on the 27th that it will build a new plant for memory production within its Kitakami plant site in Kitakami City, Iwate Prefecture. The announcement was made by President Hiroo Ota after meeting with Prime Minister Sanae Takaichi on the same day. Details such as the scale of construction, investment amount, and production start date have not been disclosed, but the company plans to increase production capacity to meet growing demand.

It was revealed on the 27th that major semiconductor memory manufacturer Kioxia Holdings will construct a new building for memory production within its plant site in Kitakami City, Iwate Prefecture. The investment is expected to exceed 1 trillion yen, making it a large-scale investment aimed at expanding the company's production capacity. Through the construction of the new facility, the company plans to respond to the increasing demand for advanced memory.

Sandisk has unveiled a new 9th generation 2Tb QLC 3D flash memory with Kioxia, aimed at AI driven storage demand in cloud and data intensive workloads. The announcement comes as the stock has surged, with an 8.88% one day return, a 44.34% seven day return, and a year to date gain of more than 5x, driven by its AI focused product roadmap, strong recent results, and sizeable buyback plans. The most followed narrative places fair value at $1,772.91, while Sandisk last closed at $1,786.85, suggesting the stock is 80% overvalued according to that narrative. Analysts have a consensus price target of $1,772.91, with the most bullish at $3,250.00 and the most bearish at $1,000.00. The narrative leans heavily on rapid revenue compounding, sharply higher margins, and a future earnings multiple that assumes a very specific AI memory cycle, but risks include easing NAND supply or AI demand falling short.

Kioxia Holdings reported first-quarter results for the fiscal year ending March 2027, with operating profit surging to 1.27 trillion yen from 44.9 billion yen a year earlier. Revenue rose 415.5 percent year on year to 1.7671 trillion yen, and quarterly profit attributable to owners of the parent came to 842.2 billion yen. The main driver was a sharp rise in average selling prices amid robust demand for data centers serving generative AI, with higher shipment volumes and a weaker yen also contributing. For the second quarter, the company expects revenue of 2.39 trillion yen and operating profit of 1.89 trillion yen, projecting higher sales and profit. Operating cash flow jumped to 866.3 billion yen, while capital expenditure was held at 51.2 billion yen, roughly in line with the previous year, and 433.2 billion yen was used to repay long-term borrowings, strengthening the company's financial position.

Citigroup says Asian companies are increasingly likely to list their shares in the US market through American Depositary Receipts, or ADRs, especially technology companies seeking access to a large capital base and looking to narrow the valuation gap with US technology firms, amid an artificial intelligence investment boom that remains a key driver of the market. Adrian Nye, Citigroup's head of Issuer Services for Japan, North Asia, and Australia, said there are currently many large and attractive ADR transactions from Asian companies in the pipeline, although he did not disclose details on the size or timing of the offerings. Data compiled by Bloomberg shows Asian companies have raised about 28 billion dollars through ADRs in 2026, the highest since 2020, with most of that coming from SK Hynix, which raised 26.5 billion dollars through its US listing, while Japanese payment provider PayPay raised about 1 billion dollars. SK Hynix's success is encouraging other Asian technology companies to consider the same path, with Japan's Kioxia Holdings planning an ADR offering next year, while Samsung Electronics is reported to be in the early stages of considering a US listing.

Sandisk unveiled its newest ninth-generation high-performance 2Tb QLC 3D flash memory technology designed to support growing storage demands of AI-driven infrastructure. The company developed the technology in cooperation with Japan's Kioxia Corporation, and the companies say the new chips read and write data 33% faster than the previous eighth-generation chips while being more power-efficient. Sandisk stock rose 7.2% through 9:50 a.m. ET Wednesday in response. The chips are designed to favor agent-based and physical AI applications, such as robots and self-driving vehicles.

JPMorgan strategist Jay Kwon warned that the memory chip supply-demand shortage will persist for the next two years, driven by both pricing and volume, and that demand broadening from GPUs to CPUs remains underestimated by investors. Kwon also believes the summer correction in memory stocks has ended, noting a 25% drop in the third quarter of 2026 to date due to peak-out sentiment, but sees strong upside from current valuations and a higher shareholder return profile. He is bullish on Korean memory stocks, as well as Micron in the US, Kioxia in Japan, and Winbond in Taiwan. Shares of Micron have surged 202% this year compared to a 13% advance for the S&P 500, though they have corrected 10% in the past month on overvaluation fears.

Toshiba reported consolidated results for the April–June quarter of 2026, with net profit surging 30-fold from a year earlier to 4.4673 trillion yen, setting a new record for a first quarter. Gains from the sale and revaluation of shares in major semiconductor memory maker Kioxia Holdings significantly boosted profit, leading to an extraordinary gain of 6.3294 trillion yen. Kioxia's stock price soared to 89,680 yen at the June 30 close, up sharply from 19,080 yen on March 31. Revenue rose 27.0 percent to 937.1 billion yen, and operating profit grew 2.8 times to 111.9 billion yen, both all-time highs. Hard disk drives for AI data centers, power transmission and distribution, and defense businesses performed strongly.

The Nikkei index on the Tokyo stock market closed higher today, August 4, rising 202.63 points or 0.32 percent to end at 63,957.53. The gain came on buybacks in artificial intelligence and semiconductor shares, despite early morning declines driven by concerns that Japan and the United States may cooperate on further yen intervention. Those worries followed remarks yesterday by Japanese Finance Minister Satsuki Katayama that both countries would not hesitate to step in to support the yen. The market recovered in the afternoon, however, as investors bought back previously sold stocks and drew confidence from strong earnings at major Japanese companies, including chipmaker Kioxia Holdings. An analyst at Tokai Tokyo Intelligence Laboratory noted that the negative impact from the yen is unlikely to persist, since the market had not been rallying on expectations of a weaker yen in the first place.

The Nikkei Stock Average extended its losses in the morning session on the Tokyo Stock Exchange, falling 0.66% from the previous business day to 63,333.35. The market opened with buying dominance, cheered by the previous day's U.S. stock gains, and at one point rose 0.76% to 64,240.50. However, concerns over yen strength from additional intervention and a wait-and-see mood ahead of earnings announcements spread, turning the index negative before it moved in weak consolidation. The TOPIX ended the morning session down 0.59% at 3,936.48, with trading value on the Tokyo Stock Exchange Prime Market at 4.979818 trillion yen. Among the 33 Tokyo Stock Exchange industry sectors, 25 sectors rose, including transportation equipment and rubber products, while 8 sectors fell, including non-ferrous metals and electric machinery, with semiconductor-related stocks, which have high index contribution, leading the decline. Toyota Motor, scheduled to announce earnings in the afternoon session, was soft. Although the dollar-yen pair settled in the 157-yen range, high-tech stocks faced upside pressure due to yen strength concerns from additional intervention, while Kioxia Holdings surged. On the Tokyo Stock Exchange Prime Market, advancing issues numbered 588, declining issues 921, and unchanged issues 47.

The Nikkei index on the Tokyo stock market closed down 607.12 points, or 0.94%, at 63,754.90 today, as the yen strengthened sharply after Japan and the United States signaled readiness for additional joint intervention in the foreign exchange market. The US dollar briefly fell to the lower end of the 155 yen range from the upper end of the 157 yen range in the morning, after both countries disclosed that they had cooperated in buying yen to intervene in the market late last week, marking the first joint intervention in 15 years. Japan's Vice Finance Minister for International Affairs stated that the latest intervention was a perfect form of the Japan-US currency alliance, and that both countries will continue to cooperate and respond without interruption. Meanwhile, Japan's Finance Minister said that both countries would not hesitate to undertake further joint intervention. However, the Nikkei's decline slowed in the afternoon due to buybacks in artificial intelligence and semiconductor stocks, such as Kioxia, which reported strong demand for memory chips.

Kioxia Holdings reported a sharp rise in revenue and profit for the first quarter of the fiscal year ending March 2027, with revenue jumping 5.16 times year-on-year to 1.7671 trillion yen and operating profit soaring 28.29 times to 1.27 trillion yen. NAND and SSDs for data centers performed well, with the average selling price rising about 70 percent from the previous quarter. The company's second-quarter forecast projects further expansion, with revenue of 2.39 trillion yen and operating profit of 1.89 trillion yen. Kioxia announced a 3-for-1 stock split and a share buyback of up to 800 billion yen. Rakuten Securities maintained its target price of 140,000 yen, noting that the current forecast price-to-earnings ratios of 4.6 times for the fiscal year ending March 2027 and 2.8 times for the fiscal year ending March 2028 suggest extreme undervaluation.

The Nikkei Stock Average fell in the morning session on the Tokyo stock market, closing at 63,240.51 yen, down 1.74 percent from the previous trading day. As the yen strengthened in the foreign exchange market, selling intensified, particularly in export-related stocks, and the Nikkei at one point dropped 2.58 percent to 62,703.47 yen. The dollar briefly fell to the lower 155 yen range, and Finance Minister Satsuki Katayama referred to the coordinated Japan-U.S. intervention on July 31. Kioxia Holdings and TDK were firm on the back of their earnings announcements, while Casio Computer hit its daily limit up. The TOPIX ended the morning session down 2.17 percent at 3,916.61 points, and trading value on the Tokyo Stock Exchange Prime Market was 6.430933 trillion yen.

Kioxia Holdings announced its first-quarter results for the fiscal year ending March 2027, with net profit surging 46 times year-on-year, marking rapid earnings growth. Rakuten Securities Economic Research Institute chief analyst Yoshio Imanaka noted that on a non-GAAP basis, results exceeded company forecasts, and he expects second-quarter revenue to rise about 35% quarter-on-quarter to 2.39 trillion yen, with an operating margin of around 79%. Strong demand for high-performance products for AI data centers is driving up average selling prices. The stock had at one point fallen to a third of its value due to factors such as SK Hynix's massive investment plans, but Imanaka pointed out that the price-to-earnings ratio for the fiscal year ending March 2027 is 5.5 times, and 3.2 times for the year ending March 2028, making it undervalued, and he expressed the view that the broader decline in memory stocks has bottomed out. The company also announced a 1-for-3 stock split and a share buyback of up to 800 billion yen, reflecting management's sense of urgency.

After the close on July 31, 22 companies including Kioxia and Seven & i Holdings announced share buybacks. Kioxia will acquire up to 30 million shares, representing 5.5% of outstanding shares, for a maximum of 800 billion yen, while Seven & i will acquire up to 189,663,300 shares, or 8.19% of outstanding shares, for a maximum of 399,999,989,700 yen, both through ToSTNeT-3 on the morning of August 3. Resona Holdings will buy back up to 30 million shares, or 1.34%, for up to 50 billion yen from August 3 through January 31, 2027. Alps Alpine will acquire up to 20 million shares, or 10.3%, for up to 30 billion yen from August 3 through March 31, 2027, and cancel all repurchased shares. Marvelous will buy back up to 4,630,700 shares, or 7.61%, for up to 2,167,167,600 yen through ToSTNeT-3, and will cancel 5,003,341 shares, representing 8.04% of outstanding shares, effective August 6.