Kioxia Shares Sink After Outlook Shows Demand Leveling Off

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1. 1h ago

   Kioxia Shares Plunge After Cautious Profit Outlook

   Kioxia shares dropped as much as 15% to a six-month low following a cautious profit outlook that missed guidance by 15%. Despite record second-quarter profits with an 80.4% operating margin and a 453% surge in quarterly revenue, investors fear AI-driven growth is leveling off. The selloff coincided with broader Tokyo market volatility linked to election results. While Kioxia warns that flash memory prices are stalling, Goldman Sachs suggests NAND supply and demand tightness could persist until 2027 with Kioxia's capacity virtually sold out.

   Why it matters

   Kioxia is a major producer of NAND flash memory used in SSDs and other storage devices. The current volatility reflects a tension between record-breaking short-term financial performance and long-term uncertainty regarding AI demand. This shift indicates investors are becoming more selective about which semiconductor stocks they hold.

   What is confirmed

   • Kioxia shares fell up to 15% to a six-month low.
   • Kioxia reported record second-quarter profits with an 80.4% operating margin.
   • Quarterly revenue for Kioxia increased by 453%.
   • Kioxia's current-quarter profit guidance missed expectations by 15%.
   • Goldman Sachs states NAND supply and demand tightness may persist until 2027.
   • Goldman Sachs reports Kioxia's capacity is largely sold out.

   Still unconfirmed

   • Apple reduced iPhone 18 Pro orders because of soft demand.

   What to watch next

   • Further guidance on NAND flash memory pricing trends
   • Updates on AI-driven demand for SSD revenues
   • Market reaction to upcoming quarterly financial reports from other memory chipmakers
   Sources used for this update (18)

   1. asia.nikkei.com — Exclusive: Apple cuts iPhone 18 Pro orders due to soft demand - Nikkei Asia
   2. www.ibtimes.com.au — France Tries Teachers, Talks and 70,000 Police to End Protest Crisis as Arrests Top 1,300 and Anger Spreads
   3. Bloomberg — Kioxia Shares Sink After Outlook Shows Demand Leveling Off
   4. Business Insider — Another Chip Stock Selloff Shows How the AI Trade Is Getting Pickier
   5. Yahoo Finance — SanDisk stock tumbles as Kioxia warns on NAND price surge
   6. The Japan Times — Kioxia warns flash memory prices stalling after outlook miss
   7. BigGo Finance — Japan Chip Stocks Diverge: Kioxia, Screen Plunge While Tokyo Electron Rebounds on Buyback
   8. THE ELEC, Korea Electronics Industry Media — Kioxia Posts Record Q2 Profit With 80.4% Operating Margin
   9. Moomoo — Overseas Research Selection | Goldman Sachs: Tight NAND supply and demand may persist until 2027; Kioxia’s capacity largely sold out
   10. BigGo Finance — Kioxia's Quarterly Revenue Surges a Record 453%, but Current-Quarter Profit Guidance Misses by 15% and Shares Tumble
   11. TradingKey — Kioxia Drops Over 15% to Six-Month Low Without Dragging Down US Memory Stocks: Micron, SanDisk Up Over 2% Pre-Market, SK Hynix Gains Nearly 5%
   12. Invezz — Kioxia stock falls after issuing soft guidance: will it crash to ¥10k?
   confidence 90%