Kioxia Shares Fall Over 40% Despite Soaring Memory Demand

Tokyo-based memory-chip maker Kioxia saw its stock slide from a late-June high of ¥112,750 to ¥63,100, the lowest level since May 29, even after the company reported a strong quarterly performance.

Kioxia reported fourth-quarter revenue of ¥1 trillion ($6.8 billion), up 188% year‑on‑year and 84.5% from the prior quarter, above its guidance of ¥845 billion to ¥935 billion. Operating profit reached ¥599 billion, a 1,499% increase year‑on‑year, and net income rose to ¥409 billion, a 2,990% increase. The company cited demand from hyperscalers and large enterprise customers, including Apple, Microsoft and Dell.

The results reflect gains across the memory sector. Micron’s revenue increased about 300% in its third quarter, and company management expects fourth-quarter revenue to exceed $50 billion. Samsung reported substantial revenue and earnings growth and described the market upswing as having room to continue. Memory prices have been rising while major suppliers operate at or near full capacity.

Despite those fundamentals, Kioxia’s shares have retreated more than 40% from their June peak, tracking a broader selloff in memory stocks. SK Hynix is down about 38% from its high and Samsung around 30%, while U.S.-listed peers have also pulled back from earlier highs. Market participants point to profit-taking after triple-digit gains since January and to concern that current memory prices may not be sustained.

Technical traders have highlighted chart signals that could extend short-term pressure on Kioxia’s stock. The share price has fallen below its 50-day exponential moving average, breached the 38.2% Fibonacci retracement level and moved beneath a Murrey Math pivot point used by some analysts. Short-term downside targets cited by traders include ¥57,150, while others expect buying interest to return on a deeper pullback.

Analysts remain positive on revenue growth. The average analyst forecast referenced by market participants projects annual revenue rising to ¥9.64 trillion and climbing to about ¥12.4 trillion in the next financial year, a projected 28% increase.

Market commentary and analyst forecasts indicate the company’s near-term performance will depend on how long current memory price levels hold and how capital markets respond to sector rotation and profit-taking.