"Kioxia shares fell 23 percent in Tokyo on Friday after its outlook for the current quarter fell short of analysts' expectations. The decline comes at a time when international tech funds are under pressure due to growing concerns about excessive valuations in the sector. The news was reported by Bloomberg. Kioxia, a supplier of NAND memory and manufacturer for Apple, among others, expects operating income of between 229.82 billion and 269.82 billion yen for the first nine months of the fiscal year."
"This amounts to 1.29 to 1.51 billion euros. Based on this estimate, the company appears unlikely to meet the average analyst forecast for the full year. In the third quarter of the fiscal year, Kioxia achieved an 11 percent increase in operating profit, the first growth in three quarters after a long period of weak demand for NAND storage chips. Despite this improvement, a significant price correction followed, the largest since the IPO at the end of last year."
"For 2025 as a whole, the share price is still more than five times higher than at the beginning of the year, mainly thanks to the earlier strong interest in AI-related hardware. CEO Nobuo Hayasaka said that, according to Kioxia, demand for NAND memory will continue to outpace supply until at least 2026. This is mainly due to the enormous need for fast SSDs in data centers that are used intensively for AI training."
Kioxia reported an outlook for the current quarter that fell short of analyst expectations, triggering a 23 percent share decline in Tokyo. The company expects operating income of 229.82–269.82 billion yen for the first nine months, making a full-year analyst-beating outcome unlikely. Kioxia posted an 11 percent operating profit rise in the third quarter, its first quarterly growth in three quarters, but the stock experienced its largest correction since the IPO. CEO Nobuo Hayasaka said NAND demand will outpace supply until at least 2026 due to strong SSD needs for AI data centers. Temporary production cuts for factory upgrades may have weighed on the outlook, and peers including Samsung and SK Hynix also saw share declines amid a broader tech valuation correction.
Read at Techzine Global
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