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Kioxia Shares Rally as Micron's Strong AI Outlook Boosts Chip Sector
Summary
Shares of Japanese memory chip maker Kioxia surged after U.S.-based Micron Technology reported strong earnings and forecast robust, AI-driven demand, signaling a positive outlook for the entire sector.
Shares of Japanese memory chip producer Kioxia Holdings Corp. (285A) surged on Thursday, lifted by a positive outlook from U.S. competitor Micron Technology. The stock climbed 4.2% to close at ¥18,850 in Tokyo trading.
Micron's Bullish Forecast
The rally in Kioxia's shares followed a strong financial report from Micron (MU), one of the world's largest memory chip manufacturers. Micron announced fiscal fourth-quarter earnings that surpassed analyst estimates and provided an above-consensus forecast for the current quarter.
According to the company, the upbeat guidance is driven by robust demand for memory chips, largely fueled by the expansion of artificial intelligence applications. Micron also signaled that it expects memory supplies to remain tight until at least 2028, a condition that typically supports higher prices and stronger profitability for producers.
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Investors interpreted Micron's optimistic forecast as a positive signal for the entire memory chip industry, creating a knock-on effect for its peers. As Kioxia operates in the same market, the expectation is that it will also benefit from the sustained, AI-driven demand and tight supply conditions that Micron described.
The positive sentiment extended across the Japanese technology sector. The broader rally in chipmaking stocks helped push Japan's benchmark Nikkei 225 index up by more than 2% during Thursday's session.
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