Kioxia Tells Its Sales Force to Ease Off as $10 Billion US Listing Takes Shape
Published on 09/21/2026 at 07:10 | Editorial boerse-global.de
Kioxia Holdings is asking its own sales teams to show restraint just as demand for AI memory runs hot. Japan's NAND flash specialist has instructed staff to hold back on aggressive price increases toward data center operators, according to Bloomberg, a move that sits oddly beside the surging revenue its memory chips are generating.
The stock closed Friday at EUR 312.00, up 6.7% on the day, riding a broader market recovery and a friendlier tone across the semiconductor sector.
A Deliberate Brake on Pricing
Management's reasoning is straightforward: memory prices have already climbed sharply, and pushing them higher risks cooling the willingness of cloud operators to keep funding AI infrastructure. Chairman's comments on September 9 also closed the door on closer ties with rival and shareholder SK Hynix, signaling that Kioxia intends to chart its own course rather than deepen an alliance.
That discipline contrasts with the company's own numbers. In the first quarter of fiscal 2026, group revenue jumped 415.5% year over year to JPY 1.77 trillion, driven by solid-state drives built for data centers and AI workloads — currently its most profitable line of business.
Should investors sell immediately? Or is it worth buying Kioxia?
Wall Street Calling
To fund the next stage of expansion, Kioxia is preparing to tap US capital markets. Talks are underway with Bank of America, Goldman Sachs and JPMorgan Chase about a possible American Depositary Receipt offering next year that could raise at least USD 10 billion, Bloomberg reported. The company has confirmed it is laying groundwork for such a move but stressed that timing and structure remain undecided and that the plans could be shelved depending on market conditions.
The listing ambitions come alongside a heavy spending program. Together with partner SanDisk, Kioxia announced on August 27 an investment volume of roughly JPY 5 trillion, aimed at building a new production site in Kitakami. Broader plans between the two partners envisage more than USD 31 billion of spending in Japan through 2032, tied to government subsidy commitments, including the Fab3 plant at the same location.
Gaming Push Meets a Nervous Tape
Kioxia's first appearance at the Tokyo Game Show, held at the Makuhari Messe convention center, showcased the EXCERIA PRO G2 SSD, chosen as the official tournament storage for esports at the 20th Asian Games. The consumer-facing debut landed during a stretch of unease about global chip demand. On Wednesday of last week, the semiconductor sector came under selling pressure after senior executives at leading AI developers called for a slower buildout of artificial intelligence, stoking worries about the durability of flash memory demand. Kioxia's shares fell sharply in that session and briefly slipped below a key technical support level.
Split on the Calendar, Skeptics on the Sidelines
Investors have a mechanical event to digest as well: a 3-for-1 stock split takes effect on September 30, a step designed to improve the shares' tradability. The adjustment does not change shareholder value.
Analyst sentiment remains lopsided. Media reports indicate 15 of 16 analysts recommend buying the stock, while Bernstein stands apart, reaffirming its sell rating on September 8. The shares have gained 447% since the start of the year. The next hard data point arrives on November 12, when Kioxia reports second-quarter figures for fiscal 2026.
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