Kioxia Stock Surges on Record Q1 Profit and JPY 800B Buyback

Shares of Japanese memory chip manufacturer Kioxia surged on Monday following the release of record-breaking quarterly financial results, a substantial share buyback announcement, and an optimistic forecast fueled by the artificial intelligence boom.

Record Profits Trigger Investor Actions

Kioxia reported fiscal first-quarter revenue of JPY 1.77 trillion, a staggering 415.5% increase year-over-year. The company's operating profit reached JPY 1.33 trillion with a robust 75% margin, a figure that alone surpassed the total operating profit for the entire 2025 fiscal year.

Alongside the powerful earnings, Kioxia's management announced several shareholder-friendly initiatives that further boosted investor sentiment:

• A share repurchase program valued at JPY 800 billion.
• A 3-for-1 stock split.

The company also disclosed that it had achieved a net cash position after significant debt repayment, signaling a strengthened balance sheet.

AI Demand and Pricing Power Fuel Outlook

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Looking ahead, Kioxia projected continued momentum with a second-quarter revenue forecast of JPY 2.39 trillion, representing a 35% sequential increase. The company expects operating profit to grow to JPY 1.9 trillion in the same period.

Management attributed the strong guidance to a projected 70% improvement in blended NAND selling prices and sustained volume growth from the buildout of AI infrastructure. The company also flagged expectations for a NAND supply deficit in 2027, underpinning a thesis for continued pricing power in the memory market.

Market Response

In response to the news, Kioxia's stock closed up 6.9% at ¥49,690 on Monday. The rally was supported by a broader rebound in other Japanese technology stocks.

According to Investing.com, the consensus analyst target price for Kioxia sits around ¥114,500, which implies substantial potential upside even after the recent gains.