Kioxia soars 29x in operating profit driven by AI demand

Japanese semiconductor maker Kioxia Holdings projects operating profit of 1.298 trillion yen in the first quarter of fiscal 2026 (April-June), representing an extraordinary 29-fold jump from the same period in the previous fiscal year. The result far exceeds the average analyst forecast, which estimated 874.1 billion yen, highlighting the impact of the global boom in artificial intelligence on the chip sector. The persistent shortage of NAND flash memory, the company’s strategic product, amplified by exponential demand from AI data centers, supports this unprecedented expansion.

Estimated quarterly revenue reaches 1.75 trillion yen, growth of 5.1 times. Esses numbers consolidate Kioxia as the fourth most valuable company listed on Japão, with a market capitalization of 24.2735 trillion yen. At the close of May 15, shares had increased 4.3 times since the beginning of the year, reflecting the market’s confidence in the company’s trajectory during the current cycle of technological expansion.

Strategic Transição in the AI ​​Chain Accelerates Demand

The artificial intelligence market’s structural shift from “training” to “inference” repositions Kioxia to a competitive advantage. Analistas point out that the inference phase demands massive and continuous data storage, increasing the pressure for large-scale NAND flash memory solutions. Kazuyoshi Saito, analyst at Iwai Cosmo Securities, projects that the AI ​​boom should persist for at least three decades, supporting robust demand for storage infrastructure.

Expansion of NAND flash memory production capacity remains limited among global competitors. Enquanto Samsung Electronics, SK Hynix and Micron Technology concentrate investments in HBM technology (high performance memory for processors), Kioxia takes advantage of this window of opportunity. Sua’s unique NAND expertise positions it to “fully benefit” from the growing demand for data storage.

Vantagens technologies sustain market position

The company differentiates itself by its ability to achieve high density NAND flash memory in both vertical and horizontal directions, using a reduced number of layers. Essa technical proficiency reduces production costs and exceeds the storage capacity per unit area offered by competitors. Masahiro Wakasugi, analyst at Bloomberg Intelligence, highlighted that Kioxia increased its offer with lower investment compared to rivals, simultaneously improving the quality of products.

Hiroo Ota, president of Kioxia, reinforced at a press conference that artificial intelligence will become a structural pillar of society. The company foresees diversification in the use of data, from generative AI to agent-based models and physical AI. Ota highlighted that Kioxia aims for “medium and long-term growth” as a company that “supports social transformation through the use of AI.”

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Mudanças on shareholder return policy

Apesar’s exceptional performance, Kioxia announced that it will not distribute interim dividends in the current quarter. Chief Financial Officer Yoshihiko Kawamura stated that the company is evaluating comprehensive measures to increase corporate value, including dividends and share repurchases. A meeting with investors is scheduled for June to formalize the shareholder return strategy. Kawamura expressed a preference for dividends, arguing that the current share price is high and would make buybacks ineffective in influencing prices.

International Expansão and inclusion in main indices

Kioxia’s inclusion in the Nikkei 225 index in April cements its status as a driving force in the Japanese stock market. The company also announces preparations to list American depositary receipts (ADS), backed by common shares, expanding access to international investors. Essa movement reflects confidence in the sustainability of the growth cycle.

Enterprise Transformation Contexto

Kioxia began as a core division of Toshiba before being sold in 2018 for 2 trillion yen to a consortium led by Bain Capital, made up of investors from Japão, Estados Unidos and Coreia from Sul. The sale was driven by losses from Toshiba’s US nuclear power business. The company returned to the stock exchange in 2024, marking its return to the public market after a period of restructuring under private control.

Perspectivas market consolidates favorable scenario

Kioxia’s performance differentiates itself even among other booming semiconductor stocks. In five months, the company rose from 43rd position to the fourth largest market capitalization of Japão, behind only Toyota Motor, Mitsubishi UFJ Financial Group and SoftBank Group. The average sales price in the quarter from January to March more than doubled compared to the period from October to December 2025, showing continued acceleration in demand.

NAND flash memory is suitable for long-term data storage, with the ability to accumulate large volumes of learning information. Conforme indicated in a previous interview with Bloomberg, Stacey Smith, executive chairman of Kioxia, noted that the company was “in a strong position” to capitalize on the AI-centric digital transformation cycle.