Kioxia’s stratospheric climb illustrates the tech industry’s booming demand for memory as hyperscalers rush to build out AI infrastructure. Chips like Kioxia’s are essential for AI training and data centres. This year, major tech firms warned of a memory supply crunch amid soaring demand, with analysts forecasting a jump in prices.
The memory rush has been a boon for Kioxia shares, as investors anticipate solid demand and rising prices will boost its revenue. “In tech, we go into 2026 mainly geared to memory, whether that’s direct exposure to Kioxia or second derivative plays,” said Amir Anvarzadeh, Japan equity strategist at Asymmetric Advisors Pte. Chip wafer makers like Sumco Corp also stand to benefit from strong memory demand next year, he said.
Still, the stock’s performance has raised some concerns about overvaluation which have also weighed on other AI-related shares in recent months. Kioxia dropped 23% in a day after its quarterly earnings undershot investors’ lofty expectations in November.
See also: STMicro sales outlook beats estimates on chip recovery
With memory demand still far outstripping supply, however, Kioxia looks well-placed to weather AI market jitters in 2026, said Anvarzadeh. “Worries about a data centre investment slowdown shouldn’t really affect memory prices for next term, as the market is already heavily undersupplied,” he said.
Uploaded by Arion Yeow
