❯ Kioxia loses about two-thirds of its June peak market value as rate and competitive pressure mount

From first to a thirdNikkei Asia reported on October 16 that Japanese flash maker Kioxia’s market value has fallen to about a third of its peak roughly four months ago. According to Startup Fortune, Kioxia passed ¥44 trillion on June 12, briefly overtaking Toyota as Japan’s most valuable company.

Why it fellKioxia makes NAND flash, a core part of data center storage, and its shares soared on AI-driven storage demand. Nikkei Asia says rising rates threaten data centers’ business model, higher data-center borrowing costs pose a risk to memory suppliers, and Chinese competitors are closing in.

Waiting on earningsNikkei Asia notes Kioxia will report April–September results on October 30, expected to show record profit growth. Strong earnings alongside a share collapse suggest the market worries about how long the cycle lasts, not current orders.

▮ SIGNALAI-driven memory rallies come and go fast, and storage chip stocks are still valued as cyclicals in the end.