Kioxia Holdings, a Japanese memory chipmaker, has seen its stock value skyrocket due to the increasing demand for data storage driven by artificial intelligence. The company's shares have risen approximately 540% year-to-date, making it the top performer in Japan's Topix benchmark and outperforming all members of the MSCI World Index.
Kioxia's success highlights the tech industry's growing need for memory as major players expand their AI infrastructure. The company's NAND flash memory chips are crucial for AI training and data centres, with clients including Apple and Microsoft. Due to soaring demand, tech firms have warned of a memory supply crunch, leading to anticipated price increases. This surge has greatly benefited Kioxia's stock as investors expect rising prices and sustained demand to boost revenue.
Despite some concerns about overvaluation, analysts believe Kioxia is well-positioned to navigate AI market fluctuations in 2026, as memory demand continues to outstrip supply. Other companies, such as chip wafer makers like Sumco, are also expected to profit from the strong memory demand.
