AI memory demand propels Kioxia to world’s best-performing stock

[TOKYO] Artificial intelligence’s insatiable appetite for data storage has delivered Japanese memory chipmaker Kioxia Holdings world-beating stock gains this year, a sign that the AI boom is alive and well despite recent market jitters.

Kioxia’s shares have risen around 540 per cent year-to-date, outperforming all other members of the MSCI World Index and making it the top stock in Japan’s Topix benchmark for 2025. The NAND flash memory maker, which only debuted on the Tokyo Stock Exchange last December, counts Apple and Microsoft among its clients and is now worth about US$36 billion.

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. 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 per cent in a day after its quarterly earnings undershot investors’ lofty expectations in November.

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. BLOOMBERG