Kioxia Holdings closed at 69,100 yen on the Tokyo Stock Exchange on July 14, marking a nearly 40% decline from its post-listing peak of 112,700 yen recorded on June 22. The NAND flash memory manufacturer's stock fell as concerns over artificial intelligence overinvestment and production increases by Samsung Electronics and SK Hynix fueled selling pressure, according to Nikkei analysis. Kioxia had been Japan's leading AI-related stock in the first half of the year, driving gains in the Nikkei 225 index with an over 800% surge, but has weakened since early July.
Kioxia Stock Records Intraday Low on Tokyo Exchange
During trading on July 14, Kioxia shares dropped to an intraday low of 63,060 yen, down 4,040 yen (6.02%) from the previous trading day. This represented the lowest level in one and a half months. The stock's decline from its June 22 peak of 112,700 yen amounts to approximately 40%.
Analysts Cite AI Investment Concerns and Competitor Production
The Nikkei newspaper reported that concerns over excessive AI investment and anticipated semiconductor price declines due to production increases by major memory manufacturers including Samsung Electronics and SK Hynix intensified selling pressure on Kioxia shares. The analysis highlighted these factors as primary drivers of the stock's recent weakness.
Market Experts Forecast Recovery After Adjustment Period
Hiroshi Namioka, chief strategist at T&D Asset Management, stated that "expectations for Kioxia's earnings expansion remain solid, and the valuation burden is low with a projected price-to-earnings ratio below 10 times." Namioka analyzed that the stock could rise again following the adjustment period through inflows from overseas investors.
Ikuo Mitsui, fund manager at Aizawa Securities, projected that "once concerns about AI overinvestment are resolved, the stock can recover to the 100,000 yen range." However, some market observers noted that Kioxia's NAND flash prices could face unavoidable declines if Chinese memory manufacturers such as YMTC, which are pursuing Korean and Japanese industry players, proceed with full-scale capacity expansions.
MUFG Overtakes Kioxia in Market Capitalization Ranking
Kioxia had surpassed Toyota, Japan's largest automaker, in market capitalization last month before falling back below Toyota due to the stock decline. On July 13, financial institution Mitsubishi UFJ Financial Group (MUFG) overtook both Toyota Motor and Kioxia to claim the top market capitalization position.
Despite Kioxia leading Japanese semiconductor stocks lower this week, the Nikkei 225 index fell 1.92% on July 13, a relatively modest decline compared to the KOSPI's nearly 9% drop on the same day. Market analysts attributed this divergence to the Nikkei's diverse composition across industries including automotive manufacturing and finance, contrasting with the semiconductor-heavy concentration of top-ranked stocks in the Korean market.
FAQ
What caused Kioxia stocks to fall nearly 40% in one month?
Kioxia shares declined due to concerns over artificial intelligence overinvestment and anticipated semiconductor price drops following production increases announced by major memory manufacturers Samsung Electronics and SK Hynix, according to Nikkei analysis.
Do market experts expect Kioxia stocks to recover?
Hiroshi Namioka of T&D Asset Management stated that Kioxia's solid earnings expectations and low valuation with a projected P/E ratio below 10 times could support recovery through overseas investor inflows. Ikuo Mitsui of Aizawa Securities projected the stock could return to the 100,000 yen range once AI overinvestment concerns are resolved.
