Kioxia Stock Price Rises Amid Strong Demand from AI Data Centers

Kioxia Holdings (285A) stock price has been on the rise, up 0.02% to 54,580 yen as of September 24. However, it's down about 51.6% from its year-to-date high of 112,700 yen set on June 22.

The company is implementing a 3-for-1 stock split with September 30 as the record date, taking effect on October 1. The post-split reference price per share will be approximately 18,193 yen. This means that the capital required per lot will be reduced to about one-third of the original amount.

Kioxia's revenue growth has been driven by rising demand from generative AI-related data centers, which boosted NAND average selling prices and shipment capacities. The company expects second fiscal quarter revenue to be 2.39 trillion yen, up 35.2% quarter-over-quarter; operating profit is projected at 1.89 trillion yen, up 48.8% quarter-over-quarter.

The Japanese memory giant plans to raise the sales share of data center and enterprise markets to over 60% in the medium to long term. Kioxia has also announced a joint investment with SanDisk (SNDK) to invest over $31 billion, or approximately 5 trillion yen, in Japan through 2032 for production bases and related infrastructure.