Kioxia, Japan’s major memory chip maker, fell sharply in intraday trading on Friday, with the stock down 16.1% at one point and now more than 50% below its June peak. According to the figures cited in the report, the company has lost over 30 trillion yen, or about $185 billion, in market value within a month.
Nikkei said Kioxia Holdings had briefly become Japan’s most valuable listed company in mid-June after surging more than 600% from the start of the year and overtaking Toyota Motor. The company has since slipped to fourth place, adding to concerns that the AI-driven rally may have run too far, too fast.
Daiwa Securities chief strategist Yugo Tsuboi said the memory industry is highly exposed to business cycles and that similar episodes have played out before. He also pointed to growing attention on Chinese memory makers, concerns that the global memory price upswing could begin to slow, and the earlier exit of major shareholder Bain Capital as factors that left Kioxia’s stock on weaker footing. The report added that some analysts still see room for gains over the next 12 months, underscoring a split view on the company’s longer-term value.
Kioxia, the Japanese memory chip maker, fell as much as 16.1% in intraday trading Friday and is now down more than 50% from its June high. Based on the figures cited in the report, the company has shed more than 30 trillion yen in market value in a month, or about $185 billion.
According to Nikkei, Kioxia Holdings nearly halved in value only a month after reaching the top spot by market capitalization in Japan. During Friday’s session, the stock at one point dropped more than 16% and stood 52% below last month’s peak.
Kioxia had surged more than 600% since the start of the year and briefly overtook Toyota Motor in mid-June to become Japan’s most valuable company. It has now fallen to fourth place. The move has fed concern that the AI-linked rally may have gone too far.
Cycle concerns return to focus
Yugo Tsuboi, chief strategist at Daiwa Securities, said the memory industry is easily shaped by business cycles and that this pattern has repeated many times before. He added that Chinese memory manufacturers are drawing more attention, while some market watchers suspect the global rise in memory prices may start to slow.
The report also said Bain Capital’s earlier exit as a major shareholder left Kioxia’s stock on shakier ground.
AI demand cuts both ways
The memory market is well known for its sharp cycles. Because memory products are heavily tied to AI demand, Kioxia’s shares have become especially sensitive to news related to AI capital spending.
At the same time, the report said some analysts still expect upside over the next 12 months, showing that the market remains divided on Kioxia’s longer-term value.
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